Comments on: The Huge Disconnect In The Real Business World http://barternewsblog.com/2008/05/07/the-huge-disconnect-in-the-real-business-world/ Up to date information on what's happening in the barter world. Mon, 08 Sep 2008 15:53:22 +0000 http://wordpress.org/?v=2.1.3 By: Catherine Cohen http://barternewsblog.com/2008/05/07/the-huge-disconnect-in-the-real-business-world/#comment-3816 Catherine Cohen Sat, 10 May 2008 01:36:38 +0000 http://barternewsblog.com/2008/05/07/the-huge-disconnect-in-the-real-business-world/#comment-3816 Banks are making it harder and harder for businesses to get loans. And then what happens? Small business goes out of business, or downsizes and people lose their jobs. The jobs that give them the paycheck to pay the banks their mortgages. <br /> We're finding that we have been helping companies tremendously by showing them how to use barter to conserve cash. When a company "gets it" they are so thankful to have the ability to be part of an exchange that is looking out for their well-being. <br /> We still need cash and banks really need to step up and work with barter exchanges to help small business thrive. Or else we all lose. Banks are making it harder and harder for businesses to get loans. And then what happens? Small business goes out of business, or downsizes and people lose their jobs. The jobs that give them the paycheck to pay the banks their mortgages.

We’re finding that we have been helping companies tremendously by showing them how to use barter to conserve cash. When a company “gets it” they are so thankful to have the ability to be part of an exchange that is looking out for their well-being.

We still need cash and banks really need to step up and work with barter exchanges to help small business thrive. Or else we all lose.

]]> By: BarterMaven http://barternewsblog.com/2008/05/07/the-huge-disconnect-in-the-real-business-world/#comment-5722 BarterMaven Fri, 06 Jun 2008 15:38:49 +0000 http://barternewsblog.com/2008/05/07/the-huge-disconnect-in-the-real-business-world/#comment-5722 I queried the National Small Business Assn. for context on that 44% figure. Findings: <br /> > Survey was conducted mid-Feb. 2008 > Credit card financing among respondents was 44% in both 2007 and 2008. > In 1993, only 16% of respondents said they resorted to credit card financing. > In 2000, NSBA's survey found 50% of respondents using credit card financing. <br /> Here's my interpretation: <br /> 1. Credit card financing -- normally a last resort for small business owners, as you pointed out -- has nearly TRIPLED in the past 15 years. <br /> 2. The year 2000 was about when the dot-com bubble burst, sending the economy into a tailspin, hence the 50% rate. <br /> 3. The small-business credit card financing rate of 44%, extending now for at least two years, is only about one-tenth lower than 2000's 50% rate, when the economy suffered one of its deepest (and precipitous) crises of modern times. <br /> 4. Bottom line: small business owners are living crisis-to-crisis and not recovering sufficiently during cyclical economic respites to cushion the next rough patch without credit card financing -- a precarious situation in which systematic barter could spell the difference between surviving and going under if the present-day economy continues to sputter. I queried the National Small Business Assn. for context on that 44% figure. Findings:

> Survey was conducted mid-Feb. 2008

> Credit card financing among respondents was 44% in both 2007 and 2008.

> In 1993, only 16% of respondents said they resorted to credit card financing.

> In 2000, NSBA’s survey found 50% of respondents using credit card financing.

Here’s my interpretation:

1. Credit card financing — normally a last resort for small business owners, as you pointed out — has nearly TRIPLED in the past 15 years.

2. The year 2000 was about when the dot-com bubble burst, sending the economy into a tailspin, hence the 50% rate.

3. The small-business credit card financing rate of 44%, extending now for at least two years, is only about one-tenth lower than 2000’s 50% rate, when the economy suffered one of its deepest (and precipitous) crises of modern times.

4. Bottom line: small business owners are living crisis-to-crisis and not recovering sufficiently during cyclical economic respites to cushion the next rough patch without credit card financing — a precarious situation in which systematic barter could spell the difference between surviving and going under if the present-day economy continues to sputter.

]]> By: Bob Meyer http://barternewsblog.com/2008/05/07/the-huge-disconnect-in-the-real-business-world/#comment-5729 Bob Meyer Fri, 06 Jun 2008 18:15:59 +0000 http://barternewsblog.com/2008/05/07/the-huge-disconnect-in-the-real-business-world/#comment-5729 Barter Maven...Thanks for the additional information and your interpretation. Barter Maven…Thanks for the additional information and your interpretation.

]]>