A Hotel wishes to "barter" for Rs. 1,00,000 worth of Print Ad by giving Rs. 1,00,000 worth Hotel Rooms. No print Ad Company would require Rs. 1,00,000 in Rooms that too in the same Hotel, however by selecting a Barter India Print Ad Company, the Hotel pays the Print Ad Company with Barter Trade Credit of Rs. 1,00,000. The Print Ad Company’s account is "credited" and the Hotel’s account is "debited", so the Hotel now owes Barter Trade Credit of Rs. 1,00,000 in Hotel Rooms to the Barter India network, NOT the Print Ad Company. Now this is repaid as various Barter India members come to the Hotel (new customers) over the period of time.
Hence, the Hotel has paid for its Print Ad requirements with Hotel Rooms, using an interest-free trade credit.
The Print Ad Company can now use the barter trade credits earned to buy anything through the Barter India network like Courier Services, Furniture, Office Stationery, even a Family Vacation. These are all the Products and Services for which the Print Ad Company would normally have pay cash. By using their Barter trade credits, the Print Ad Company preserves his cash, and benefits from the extra business.
