He calls several general contractors for a quote. He is not happy to hear the answers. The total bill comes to $10,000. His restaurant is doing well, but not so well that he can just write a check for $10,000. Short of begging his banker for a loan or putting in more of his personal money, what can Rob do?
Rob has an idea. What if he can trade with the contractor? He does some calculations in his head. He has empty tables for weekday meals and can squeeze in a few more sittings even during his busiest weekend nights. A typical dinner for two at his restaurant would cost about $100. If he could pay the contractor with 100 dining vouchers, it would mean he could get the repair done with no cash up front. And since his raw material costs is about 30%, the effective cost of the 100 dining vouchers is only $3,000. He will be replacing a one time $10,000 expense with a $3,000 expense spread over many months!
Unfortunately, none of the contractors will accept 100 dining vouchers as payment. So Rob puts off repairs for another week. It rains badly the next week, his restaurant is flooded and ruined, his wife divorces him, and he declares bankruptcy. Rob is last seen at a local gas station asking for money, claiming he ran out of gas.
In the above scenarios, suppose Rob had been a member of a barter exchange like Bay Bucks. Bay Bucks can facilitate the trade that Rob wants to do. Based on the restaurant's popularity and longevity, it qualifies for a 0% interest $10,000 Bay Bucks credit line so Rob can pay a contractor, who is also a member. Rob can get his roof fixed right away. The barter exchange then sells the dining voucher to many other members. Each time Rob accepts a dining voucher, he is gaining a new customer. He then uses the redeemed voucher to reduce his balance. He continues to issue dining vouchers even after he has completely paid off his balance, because he understands what a barter exchange can do for him. He now regularly barters his empty tables for wine, cleaning services, and even a nice piece of jewelry for his daughter's birthday!
If you want to improve your cash flow, join Bay Bucks today and get the special Founding Member deal of $0 joining fee and a lifetime waiver of monthly subscriptions.