Globe Chamber of Commerce: The Importance of Trade Exchange.

Trade Exchange can be defined as a community or association of businesses trading goods and services using mutual credit outside of the cash economy. Although the concept of barter is thousands of years old, bartering through a trade exchange combines modern technology, a community of businesses, and marketing channels to increase profits through new customers and improved cash flow.

In addition, Trade exchange is a form of barter network which consists of several businesses, usually formed by one central “master” business. These businesses trade with one another using interest-free credit accounts, rather than their actual capital. For instance, a mechanic might “purchase” tools from one supplier in the network; this supplier then uses the credit received from the mechanic to “pay off” other transactions they’re undertaking.

The credit used in a trade exchange functions almost as a private currency acceptable only within the exchange itself. This can be liberating for businesses, as they’re no longer constrained by the cash they have on hand or their ability to secure a loan.

By belonging to a trade exchange businesses one can realize the true value of their assets and inventory while also securing useful business from other exchange members. Most importantly, this places no additional financial strain on the business, which can be vital for small traders that operate from one invoice to the next. It’s also a powerful tool for businesses that are growing quickly, and need to plough every last pound into expansion – any assets they can secure through trade rather than capital expenditure means more money to invest in growth.

Globe Chamber of Commerce and Industry as an elite trade organization creates trade mix, business networking scene and other trade defining programs, all of which creates an avenue for Trade exchange.

The Elite organization believes that trade exchange has become a powerful tool in promoting modern day businesses. Hence, with the advent of new technology to facilitate quick and easy trading, trade exchanges have become the frontline in the business space.

The aforementioned subject is brought to you, courtesy of National Mail.

National Mail is an online news platform of  Globe Chamber of Commerce and Trade Nigeria that focuses on business development, Investment, trade, economic exchange and development. 

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