The barter system, which has been used by many companies across Turkey for years, ensures that buyers and sellers come together smoothly. At the same time, it plays a very important role in allowing buyers and sellers to carry out exchange transactions. In other words, most companies working in partnership with barter companies sell their products to meet their needs.
This trade is carried out in common markets where companies participate. Thus, target audiences are expanded and new customers are acquired. In short, it is a very advantageous system for both making a profit and meeting various needs.
In this article, we will seek answers to the questions of what the barter system is—which is the direct exchange of goods or services without using money—and how it works. At the same time, we will examine in detail what you can do with this system. Understanding the opportunities and dynamics offered by the barter system allows you to open new doors in trade. Here is everything you need to know about the barter system! 👇🥳
What is Barter?
Barter, which literally means 'exchange', is different from the ordinary exchange transactions that come to mind. This is because it has a highly developed system. Within the scope of this system, it is considered a shopping club utilized by institutions or individuals with specific qualifications to find markets under the best conditions and ensure that transactions are carried out in these markets.
In the barter system, a company or person pays for the services and goods they purchase with the services and goods of their own production. In short, in exchange for the services and goods owned, the services and goods that have become a need are purchased.
Barter companies are responsible for all of these transactions. In other words, buyers and sellers generally do not come together. The popularization process of the barter system begins with the increase of economic crises experienced in countries. Thus, the cash shortage experienced in the market can be a trigger in this sense. Exchange transactions can start in areas where cash shortages are experienced.
How Does the Barter System Work?
The working principle of the barter system is that the services or products purchased by companies are paid back with the services or products they produce. Here, a service or product sold is intended to meet another need.
Barter companies act as intermediaries in this large marketplace where the seller and buyer easily come together. Within the scope of this system, which acts as a unifier, the rights and responsibilities of the parties are determined along with specific rules and criteria.
How is a Barter Payment Made?
With the barter system used in Turkey since the early 1990s, the field of activity of more than 100 barter companies has expanded, especially in recent years. In this context, the steps followed to make a barter payment are as follows:
• According to the barter system applied in Turkey, the companies in question come together in a common barter pool.
• These companies report their specific demands and the products they want to offer to the contracted barter companies.
• Companies, which are kept informed of each other's supply and demand through the Barter Information Bank, can exchange their products and services among themselves without using cash.
• In this context, the role of barter companies is to provide consultancy services so that companies can sell their products or meet various needs.
• The system, which does not have a wide target audience throughout Turkey, can be applied in domestic trade rather than foreign trade.
What are the Advantages of the Barter System?
One of the biggest advantages of the barter system is that it offers shopping opportunities without the need to use cash. In addition, the general advantages of the system are as follows:
• Having the characteristic of being a major market on its own, this system allows companies to both liquidate their stocks and turn their idle capacity into sales using different methods.
• The system contributes to companies saving cash.
• Thanks to the barter common market, the indebted company can place its stock products on the market in the first stage and make repayments during this process. In this sense, stock costs are reduced/eliminated and turnover increases. In addition, a significant profit is obtained.
• Thanks to the common market, new customers and target audiences are acquired.
• Companies can promote and advertise for free for about a year.
• The collection period is shortened; within this scope, companies that make their sales realize immediate collection by receiving different services and goods previously offered to the system.
Why is the Barter System Used?
The biggest reason for using this system is that companies save cash to the extent they use the system and minimize their need for working capital. Companies in the common market also get the chance to utilize their capacity to meet the reliable and regular demands coming from this market.
Companies that make sales using the barter system are considered creditors to the value of the sold products. Therefore, they can collect this receivable by purchasing services and products from the system.
Barter System in Turkish Law
There is no specific regulation or law regarding the barter system in Turkish Law. Therefore, in legal non-compliance or disputes that may arise in the barter contract, certain provisions of the Turkish Commercial Code, the Turkish Code of Obligations, or the Turkish Civil Code apply if appropriate.
