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Businesses Turning to New Barter System to Control Costs
Businesses across Louisiana and the rest of the country are turning to a new kind of barter system to save money and make use of their existing resources.
This alternative form of payment is called Moxey. It’s a network of small businesses that sign up to be part of the app and directory, offering their own products or services in exchange for Moxey payments.
Let’s say you own a restaurant and need a new exterior sign, but you have several sets of chairs and tables that you no longer use. When you sign up for Moxey, you can offer those unused items and search for sign companies that accept Moxey payments. These transactions don’t have to be direct trades; you can offer your products or services to other businesses, accept Moxey as payment, and then use those credits to purchase products or services with other businesses.
The idea is that small business owners and their customers will prioritize doing business with other companies that use Moxey. So, those who sign up will have a built-in customer base in their communities.
Moxey’s Founder and CEO Charlie Davis told WBRZ, “It’s like a giant family, where we keep the money in the family. So the more money you spend with local business owners, the more money those local business owners spend back with you.”
More than 3,000 businesses are already using Moxey. Many are currently based in Louisiana, but the system is open to businesses throughout the country. When you sign up for Moxey, you can then search on the app or website for businesses in your area that provide the product or service you need. You can also use the platforms to offer your own products or services to other businesses in your area. The payments are even taxable, with businesses receiving a 1099-B form at the end of the year.
In addition, Moxey offers interest-free lines of credit to new members that they can use anywhere in the network.
Since costs for various products and services are at all-time highs, it makes sense for businesses to turn to a modified barter system. Moxey offers a creative solution that can make the process convenient. But the idea of partnering with other businesses to trade or offer reduced rates on products or services you can afford to spare may help entrepreneurs in nearly any community control costs more effectively.
Image: moxeyusa.com
This article, “Businesses Turning to New Barter System to Control Costs” was first published on Small Business Trends