Although this business plan talks a great deal about “barter”, what we actually refer to (except in the case of counter-trade) is “mutual-credit”.
A mutual credit exchange is an association of buyers and sellers that provides for the direct settlement of bills due to one another, reducing or eliminating the need to use money as an intermediary payment medium. It enables bills to be paid without the use of money.
In a mutual credit exchange goods and services, ultimately, pay for other goods and services, and money (which is just an intermediary device in the exchange of assets) is dispensed with.
When one participant sells something, their account balance is credited (increased); when they buy something, their account balance is debited (decreased).
Remaining balances may be settled at periodic intervals, or may be carried over indefinitely.
Mutual credit clearing is generally conducted by a group of businesses and/or local government entities can organize into a mutual credit clearing association to enable cashless trading among themselves.
The barter industry consists of three primary “mutual-credit” segments and one “trade” segment as follows:
Retail Barter – mutual credit
Corporate Barter – mutual credit
Counter-trade - trade
Community Currencies / Local Currencies – mutual credit
Copying and distributing this article
Ormita provides free updates about the generic benefits of barter to those interested in local currency, community currency, countertrade, reciprocal trade, barter exchange, time dollars, hours and other forms of community trade vehicles.
You may freely copy and distribute this article provided that you attribute the author and/ or source as the Ormita Commerce Network.
About Ormita
The Ormita Commerce Network spans 5 continents, with direct representation in more than 17 countries plus additional partnerships in a further 59 countries. The business allows companies to exchange goods and services on a reciprocal trade arrangement.
Some of our Websites
Ormita Commerce Network Australia – www.ormita.com.au
Ormita Commerce Network Canada – www.ormita.ca
Ormita Commerce Network India – www.ormita.co.in
Ormita Commerce Network Mexico – www.ormita.com.mx
Ormita Commerce Network New Zealand – www.ormita.co.nz
Ormita Commerce Network United Kingdom – www.ormita.co.uk
Ormita Commerce Network United States of America (USA) – www.ormita.com
For Licensee, Franchise and Partnership Enquiries please visit : www.ormitacorporate.com
