Barter is valued by traders as it offers a way to use up spare inventory or capacity, attract new customers and reduce pressure on cash flow. However, it suits some types of business better than others and is not risk free.

A barter network is an organisation that enables members to trade goods and services with one another more easily, typically by providing an online trading platform that can bring together thousands of traders from all over the country or further afield.

This factsheet explains how barter networks operate, lists the advantages and disadvantages of barter and explains how small businesses can get involved. It also covers the tax implications of barter transactions and lists examples of barter networks operating in the UK.