Every time you lose a sale because you do not offer barter, you lose the profit as well. The sad part is that it happens every day with many business and professional people. If your product is not selling for cash, if space remains not rented, if you have time that is not billed as a professional, then the potential income is lost forever if you do not consider trade. The transaction could be at the full retail price and yet some in the business will not cash in. There is no capital investment, just the acceptance of a different currency. This currency can be banked for use at a future time, just like the dollar.

By trading for any underused item, trade dollars can be earned that can be spent on items the business is presently spending cash to acquire. If a company is presently spending $100 each week to have their computer system maintained, the trade exchange may be able to provide the same service on trade.

With the trade dollars earned, the company employs a computer maintenance company and pays them the going rate in trade dollars from their account at the trade exchange. If the company chooses not to barter, they pay for maintenance with earned income, a much more costly way to do business.

It is common in the United States today for many businesses to resist barter since they have relied on the US dollar as a standard measure of value. We do, however, have other measures which are now commonly accepted in lieu of dollars. Credit cards, checks, gift certificates, letters of credit and electronic transfer of funds have become regularly used measures of value in the business world. This was not always the case and with some of these instruments, it took a long time before they were commonly accepted.

A few businesses still refuse to accept credit cards in payment of bills. When this occurs, the business may well be lost, not only for today but all future business as well.

The trade dollar is in the same position. Although barter has been around for thousands of years, it was always associated with one-on-one transactions. The Internal Revenue changed this when it recognized the trade dollar as a currency which is the equal of the US dollar. Both income and expenses for business purposes are reported just like the US dollar.

As with prior currencies, if you don’t use them, you lose them. If you don’t barter, you lose.

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Commercial bankruptcy is a serious matter for any company to enter into and there may be some steps that you can take to avoid it if you take action early enough.  If your business is struggling to pay its debts or its liabilities are greater than its assets it is essential that you seek legal advice and help from an appropriate source.  A lawyer or an insolvency lawyer will be able to give you advice that can help to keep the business running or on subjects such as CVL’s and MVL’s if the company enters liquidation.

If your company is organised as a limited liability company your personal assets will be secure and you will not be liable for your company’s debts.  Exceptions to this are if you have given personal guarantees to your creditors or the companies you trade with.  Sole traders who trade under their own names can also have their assets seizes by their creditors to pay their debts.

In the case of sole traders bankruptcy proceedings can be started when more than £750 is owed to creditors.  For a limited liability company creditors can “bankrupt” the firm by presenting a winding up order to the court to recover unpaid debts.

There are a number of options available to both companies and individuals to prevent them from being declared bankrupt or wound up.  These include Voluntary Agreements, Company Voluntary Agreements and entering Administration.  An insolvency lawyer will be able to provide you with expert advice on all of these subjects and help you to decide which will be the best course of action to take for you and your company.  It is essential to seek legal advice as soon as you begin to encounter and difficulties as often it is possible to come to an arrangement with your creditors without the need to be declared bankrupt.

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If you own and run a business that is struggling to make a profit and can’t pay its debts there are a number of options open to you.  The first step to take is to realise that you actually have a problem and seek the appropriate advice.  Taking early action to resolve the problem means that you will have a lot more options open to you such a re-structuring or re-financing the company which will allow it to keep trading.

Getting the correct legal advice is essential in cases of commercial bankruptcy.  You should seek out a lawyer who has the relevant experience in dealing with matters of company insolvency and commercial bankruptcy.  The next step is to meet with your lawyer and decide what will be the best course of action for you and your company.

Even in cases of Compulsary Liquidation there are a number of options available to you.  In the UK there are C.V.L’s (Creditors Voluntary Liquidation) and M.V.L’s (Members Voluntary Liquidation).  A CVL is used in cases where the company is insolvent i.e. when it can’t pay its debts on time and its liabilities exceed its assets.  An MVL procedure is used when there will be remaining company assets after all the creditors have been paid in full.  Both types of procedure can only be carried out by a Licensed Insolvency Practitioner acting as Liquidator.

In all cases of commercial bankruptcy the need for proper legal representation and advice is a must.  There may be ways to keep the company as a going concern or if liquidation proceedings are started to guide you through the process.  Bankruptcy is a complicated legal process which requires expert advice and assistance from insolvency lawyers to be dealt with properly.

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