FAQ
There are no tax advantages or disadvantages to barter. Barter income is the same as cash income for tax purposes.
There is a 7.5% transaction fee on sales and purchases. The average business member will net approximately $20 of profit for every $1 of profit the Global Xchange earns during the life of our partnership.
The price the seller would charge for the product or service in cash is
the price the seller would charge in barter. One Global Xchange dollar equals one US dollar. Global X strictly prohibits upcharging of any kind.
First, there are thousands of items on our platform that you cannot trade for one-to-one. Business owners that are out of your local area may not desire your service simply based on your geography. Other more complicated trades may need to involve multiple business owners.
The average business owner has neither the time nor contacts to make difficult multi-point trades worth it. Second, tracking trading activity can be time consuming and difficult. Global X makes it effortless. Third, and most importantly, trading one-to-one can be very RISKY. If you provide your services first, and the other business goes under, you are in trouble.
In order for a one-to-one relationship to go well, long term, the parties must: 1) Find or know each other 2) Have a products and services each of the other party needs 3) Have the other needs in the largely the same amount or be forced to add cash to supplement the difference and 4) Have the need near the same time. That’s a tall order and nearly impossible for anything other than saving on a few small transactions.
“Experts estimate that millions of companies, especially young ones, employ barter as a regular or occasional business tool. Barter provides one important benefit: helping companies dispose of excess inventory by trading it for valuable goods or services. That can be especially useful for startups whose markets aren’t developed enough to consume all their capacity.”