SMEs embrace barter culture
There has been a massive increase in the amount of bartering taking place amongst small and medium sized companies in an effort to improve profitability and hold onto limited cash reserves.
According to the country’s biggest bartering exchange, Bartercard UK, bartering between SMEs has grown by 80% in the last year, as companies swap spare capacity and unused products for products and services they need.
More than £3m is being traded in such a manner, with transactions taking place every three minutes.
Bartercard managing director Mike Timoney said: ‘The current uncertainty over the economy is hitting many small and medium sized companies very hard. They often find it hard to compete because operating costs are already cut as far as possible.
‘Freeing up their cash reserves lets them continue investing in things like marketing, IT and office equipment, while leaving their cash for things like salaries and rent.’