There needs no special situation for barter business to spawn. In times of depression, when the money flow is low in the economy, barter markets thrive because of their strengths in terms of:
Liquidation of excess inventory/utilization of idle capacities.
Optimization of liquid cash.
Saving on costs – inventory, selling, etc.
On the other side, when the economy thrives, barter markets also consolidate mainly due to:
Strengths in sourcing alternate markets, new clients.
Enhancing networks to penetrate existing markets.
Incremental Sales.
Where barter scores over the conventional business transactions is its ability to curb cash outflows and savings in terms of time & efforts to sell. The seamless flow of products and services across industries is also a major plus point of barter business.
