Barter transactions - barter is the direct operation. Barter agreement. Barter

Quite often, the exchange of services or products realized by individuals and legal entities, without participation of funds. It's a barter deal. With the advent of network technology and modern vehicles, this system has become global in nature. Often human interaction is carried out through auctions or trade and financial markets.

Historical background

In ancient times, the exchange of goods and services was very popular. The Phoenicians successfully used such a scheme of trade relations with other tribes. Babylonian state was able to develop a special system in which objects of barter were not only food, but weapons and tools for defense and attack.

In the Middle ages, Europeans began to travel around the world to exchange one craft to the other. Colonial Americans instead of muskets received animal skins and wheat. After the appearance of cash barter became more organized.

In connection with the lack of financial resources, barter became popular in the United States during the great depression. Almost half of the country had to engage in this natural process. Citizens often joined in a special co-operatives providing mutual assistance to each other.

Main benefits and drawbacks of the process

It is believed that the barter transaction – it's a pretty profitable operation in the absence of financial resources. It is characterized by the following advantages:

• Getting rid of produce in excess of goods;
• Formation of close relationships between partners;
• The extension of spheres of influence;
• Be able to reduce your costs due to inevitable price increases.

Although exchange transactions is a positive process, it should be noted that over time, the practicality of this approach becomes less effective. The main drawback is the difficulty in the selection and ratio of products in the exchange, especially if the interests of the two parties did not coincide.

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Why do companies have to do this?

There are five main reasons that force the company to implement barter.

1. Working capital Deficit. The ability to perform a financial transaction depends on the output on the desired products. Lack of capacity entails significant costs.
2. The Desire to expand or save the output. The conduct of barter provides the opportunity to avoid production decline, despite financial constraints.
3. The Possibility of reducing taxes. The lack of transparency in transactions contributes to the maintenance of informal relations. If necessary, manages to hide the flows of goods to be exchanged.
4. Increase the ability to survive of the enterprise with the increasing risks. This primarily applies to industries where the possible losses are the most common.
5. Removing the possibility of confiscation of assets by debt. Similar operations complicates legal intervention in cases of bankruptcy, as in the accounts of the company has no cash.

Classification of operations

From the above it becomes clear which actions can be called a barter deal in the truest sense of the word. However, such operations are not of the same type. There is their classification by various signs. It is necessary for a clear definition of the law.

From the point of view of the contractual relationship of the transaction is divided into four types.

1. A Counter purchase involves the assignment of sales of produced goods and purchase of raw materials for the funds received to another organization.
2. To Barter a lease involves the provision of equipment for a specific time period. Payback is a product made with borrowed equipment.
3. Supply Counter provides for the delivery of the finished equipment in exchange for raw materials for it.
4. Tolling is a way to get paid directly for the processing of supplied raw materials.

You Can split the barter also in direct and multilateral. In the first case the operation fails with an acquisition by each party of the desired product. In multi-transaction happen numerous manipulations with the participation of various business entities, I don't get the desired item.

Requirements to contracts

When you barter with the participation of high-value products, should use special document confirming the order of operation. The agreement spells out the details of the deal and the rights and obligations of the parties.

Any agreement must have:

• Number and date of conclusion;
• Decoration in the form of a single document, except with the transactions entered into in international agreements;
• The list of goods or services, prices and terms of deliveries, the order of claims failure to comply with conditions.

Any barter agreement establishes for subjects modea continuing relationship in which compliance is time. In the exchange of goods without prior agreement may result in unpleasant effects that can lead to hefty financial losses.

The challenges

When barter operation, immediately before the parties looming problem regarding information risk of late delivery of goods to a minimum. The question in this case is about the execution of the real obligations which are common to all commercial transactions. However, if the barter execution cannot be replaced by payment of anticipated revenues.

In practice, this problem can be solved through the development of special protection measures and application of sanctions to the performance of certain obligations after a breach of certain conditions. Directly in the contract can be assigned simultaneous conducting of supply or to provide a time delay after which the second counterparty is exempt from execution of all agreements.

In addition, the conditions of barter can be extended.

1. This contract may be amended in the paragraphs on compensation of possible losses.
2. Different methods are Used to guarantee performance of obligations.
3. Perceived risks are Insured.

Mandatory prescribed options for resolving disputes. Many of the disputes of the parties can be resolved through normal negotiations. If a conflict situation cannot be resolved in such a way that it is heard in court.

Order of execution

As a barter transaction – one of the variants of trade relations between two or more parties, it must be properly designed. This requirement is mandatory to the organizations and individuals that are engaged in foreign sale and purchase of goods.

The Passport of a foreign trade operation is made by a Declaration to the relevant authorities. It is necessary to attach:

• Original signed agreement;
• Certificate of state registration;
• Copies of constituent documents;
• Certificate account in the institution of state statistics.

The Application should be processed within 21 working days. The passport is issued in two copies: one of them gets a representative natural or legal persons under the painting, the other is directly in the institution.

Barter economy in Russia

The beginning of the XXI century on the territory of our country has formed an extraordinary situation. Despite the existence of commercial banks, as well as a full monetary system, and widespread barter. It's a little surprising for a state in transition.

Due to the popularity of exchange of started to develop a barter centers in the regions that serve as intermediaries in transactions. They receive applications of organizations located in certain areas. Such a system becomes quite effective in a crisis.

One of the major dilemmas that currently are not able to solve many Russian companies is the shortage of cash. In such a situation only civilized system of barter transactions will allow to maintain the capacity and to endure difficult times with minimal losses.

The Formation of modern barter trade allows to successfully develop the field of information technology. The total volume of transactions is gradually increasing, although the demand for some goods is significantly reduced. The number of organizations that survive due to the exchange of products also increases.

In conclusion

Business people in any case have to understand, some of the actions can be called a barter transaction and what benefits you can take from this. Such operations will help to do many businessmen and representatives of large organizations without the use of financial tools for economic development. Advantages of commodity exchange is obvious.