Tradebank replaces direct barter with a platform that allows business owners to trade within a network for exactly what they need.  This conserves cash within the business, which can be used more effectively elsewhere.

Tradebank members are simply agreeing to accept an additional form of currency for payment.  Members are free to purchase any product or service within the Tradebank network—they do not have to accept each other’s merchandise directly.

The Tradebank Code of Ethics and our adherence to international guidelines ensure that all Tradebank activities are conducted in an ethical and fair environment for all members.

Selling

Making a Tradebank sale is no different from a cash or credit card sale except for the form of payment.

Tradebank helps build your business by bringing you the customers and clients you want that you currently don’t have.

Each Tradebank member works closely with an assigned Trade Broker.  Our Brokers specialize in specific industries and understand the needs and requirements of member businesses.  They constantly assess member needs and monitor the supply and demand of products and services to create multiple opportunities for sales.

Your Tradebank Trade Broker will effectively market your products and services to other Tradebank members using:

• Account Manager Relationship
• Exclusive Member Website
• Weekly and Daily E-Mail Broadcasting
• Searchable Online Directory
• Monthly Print Newsletter
• Additional Printed & Electronic Resources
• Online Classified Ad System
• Trusted Relationships With Other Brokers

A prospective customer will much more likely buy from a Tradebank member than spend cash with a competitor.  Once a customer or client is identified and it comes time to make the sale, you simply accept your new customer’s Tradebank card as payment.  The Tradebank dollars will immediately be transferred into your account for you to purchase from any other member.

Buying

Making a purchase with your Tradebank card is easy. First, identify your business and personal cash expenditures that you would like to offset with Tradebank. Next, find vendors through Tradebank using the online member directory or by contacting your Tradebank Trade Broker.  Then, pay for the product or service using your Tradebank Card.

Record Keeping and Tracking

Receive Monthly Statements
Tradebank acts as a third-party record keeper, just like a bank.  Each month members receive a statement detailing recent transactions, current trade balance and any fees due.  All transactions are recorded pursuant to trading procedures, policies, rules and regulations of Tradebank and the IRS.

Account for Trade Transactions
In accordance with General Accepted Accounting Principles, members must record all transactions at fair market value.  The member creates an additional bank account in their General Ledger to record all trade dollar transactions.  Similar to a cash sale, when a sale occurs, the revenue account is credited and the trade bank account is debited.  When purchases occur, the asset, or expense, account is debited and the trade bank account is credited. The trade bank account will equal the balance of your Tradebank statement at the end of the month.

Tax Treatment

There are no tax advantages or disadvantages to barter transactions.  Income generated through Tradebank is taxable in the year in which the sale occurs.

In 1982, the United States Congress passed TEFRA, the Tax Equity Fiscal Responsibility Act. TEFRA recognizes trade exchanges, like Tradebank, as third-party record keepers of barter transactions and stipulates that all trade revenue earned is treated as income.

Barter exchanges are required to file Form 1099-B, Proceeds from Broker and Barter Exchange Transactions, for all member transactions within the calendar year.

Accordingly, Tradebank issues each member a Form 1099-B summarizing the value of all sales made through the exchange during the year.  The IRS receives the same information.

Certain purchases made through the exchange are tax deductible.  Further, you may deduct costs you incurred to perform the work that was traded through the exchange as long as the expense is company related.

We encourage you to consult a CPA or tax professional to determine the best way to record and account for trade business. Additional examples of bartering and information on how to report the income are described in IRS Publication 525, Taxable and Nontaxable Income.

For more information on taxes and bartering, please refer to the following articles on the IRS website:

• Do You Barter?
• Bartering Tax Center
• Bartering Income
• Tax Responsibilities of Bartering Participants
• Barter Exchanges
• Topic 420 – Bartering Income

Sales Tax on Trade Transactions
Sales tax, when applicable, is included in the total Tradebank transaction amount. As the seller, you are responsible for collecting sales tax on Tradebank sales and remitting taxes to the US government in accordance with applicable laws. Sales tax expenses will be recouped when you spend your Tradebank dollars within the exchange, provided that purchases made are taxable purchases.

Trade University

Tradebank has developed an industry leading course on barter. Tradebank will credit your account with T$250 – 500 for your attendance and participation. Trade dollars earned will offset the membership investment.

Tradebank Weblink

Tradebank gives T$10 per month/website for a link back to tradebank.com

Money Back Guarantee

If we don’t bring you new customers, we will refund your investment.

Membership Investment

Tradebank is a commissioned sales force for your company.  We bring you new business through the exchange and earn our commission on that business through transaction fees.  If we don’t perform, no transaction fees are due.  In addition, when we bring you new business, you generate Tradebank Dollars that you can use to offset cash expenses.

Membership also includes the promotion of your company to other exchange members and our reciprocal partners, both national and international.  We regularly host networking events and publish member communications in an effort to increase your sales, market share and cash flow.

• Option A:
• One-time investment of $195 – 495
• 12% transaction fee on every purchase
• No transaction fee on sales
• Quarterly membership dues of $29.95
• Monthly draft w/Easypay

• Option B:
• One-time investment of $195 – 495
• 14% transaction fee on every purchase
• Quarterly membership dues of $29.95
• Without Easypay

What do the membership dues cover?

• Account setup and maintenance
• Unlimited broker consultations
• Immediate and ongoing promotion of your product or service
• Tradebank membership card(s)
• Listing in the online Tradebank membership directory
• Member-only online directory access
• Record-keeping services, including Monthly Account Statements
• Yearly 1099-B Reporting

Barter Benefits

It is estimated that more than 450,000 businesses in the U.S. actively use organized barter to supplement their cash transactions.  More than two-thirds of Fortune 500 companies participate in barter relationships.

That’s because barter is a smart business tool.

Tradebank members finance purchases of things they need out of additional sales of their own product or service.  By using Tradebank, each purchase is offset by extra sales, excess inventory, or spare capacity.

Reasons to Barter:

• Increased sales.
• Improved cash flow.
• Expanded market share.
• Conserve cash.
• Increased Exposure

Increase - Improve – Expand

Increase Sales
Tradebank introduces your business to an entirely new group of potential customers, partners and allies. With access to more than 12,500 members who bypass traditional cash vendors to work through Tradebank, your sales will increase.

Improve Cash Flow
Purchasing through Tradebank to replace cash expenditures guarantees increased cash flow.  In addition, you buy products and services at your own variable cost and pay for purchases with new sales brought to you by Tradebank.

Expand Market Share
One of the great benefits to your company is the incredible exposure you receive through Tradebank and our affiliates. Tradebank introduces your business to a new market, brings in new customers and provides new networking opportunities within an exclusive association.

Conserve Cash

Tradebank eliminates the need to pay cash for ongoing business expenses. You not only save money with each purchase but it is all paid for with new incremental business brought to you by the Tradebank network.  This effectively allows you to purchase products and services at your own variable cost.

Unlike fixed costs that don’t change regardless of the volume of customers, variable costs, or costs of goods, are incremental expenses that a business incurs as a direct result of selling a product or service. They are usually a fraction of the selling cost.  For example, a restaurateur’s variable cost is the cost of food he or she serves, approximately $.30 for every dollar of food sold. Other examples of variable costs include ink and paper for a printer, building materials for a construction company and gas for a charter bus business.  Use this simple calculator to see the savings you can experience with Tradebank.

Additional Value

Case Studies

“If you’re not with Tradebank you’re losing a great business opportunity.”

Established in 1994, Beacon Plumbing has grown substantially every year since its inception and attributes its success to doing business in a creative way and to the advertising it has been able to do on Tradebank.

Beacon Plumbing & Mechanical became a Tradebank Member in April 2003. Beacon’s owner, Bill Cahill, was attracted to the idea of using his company’s services to pay for advertising and marketing materials to increase Beacon’s cash business.

Since joining Tradebank Beacon Plumbing has filled thousands of hours of downtime with new business. Because of this new business, Cahill used Tradebank to purchase the full back page of the Verizon Yellow Pages Book, bus board and radio advertising. Beacon Plumbing has also used Tradebank to pay for employee incentives, awards and dining at many Seattle restaurants.

Tradebank has allowed Beacon to be more aggressive with its advertising, which in turn has helped attract more cash business.  “It’s because of this that Beacon Plumbing was able to open up in the Tacoma market,” says Cahill. He elaborates, “Those who don’t understand trade and its benefits don’t know how to do business. Barter will always be there.  If you’re not with Tradebank you’re losing a great business opportunity.”