Debt recovery using barter

Sometimes collecting cash for an overdue account can be a bit like extracting hens teeth.

However, strategically applying some barter techniques and working proactively with the debtor can help to make the situation a little less stressful for everyone involved.

People do get into trouble financially from time to time, especially small business people who extend credit to other businesses.

This can be a difficult time for both the debtor and the creditor and can become quite a strain on the relationship.

Many businesses have lost good customers due to temporary cash flow circumstances.

Extending credit in business is always a risk.

However, increasing the chance of being paid by offering to accept part or all of an outstanding amount by contra could provide a fast and effective solution.

Goods and services can be bartered for business related supplies, used in the course of business or re-sold for cash.

Accepting goods and services to extinguish a doubtful debt will help to boost business relations and hopefully strengthen the potential for future dealings.

A win-win for everyone.