Barter as an alternative trading and financing tool and its importance for businesses in times of economic crisis

Purpose-Today, growing commercial and financialintegration between countries with globalization leads to intense competitionand global economic crises. Due to these developments, the companies have somedifficulties carrying on their business and managing the crises withtraditional marketing and financing techniques. So they are turning alternativemethods. One of them is barter system meaning buying and selling goods andservices without using money. Barter is an innovated form of exchange systemused as a trading method since the early ages. Barter offers companies variousbenefits such as moving inventory, utilizing idle capacity, increasing sales,supplying interest-free credit, debt configuration, foreign trade facilitation.The aim of this study is to examine barter from trade and financial aspects and investigate the use ofbarter in businesses as a way to overcome economic crises.Methodology-In the study, firstly the types and effects of economiccrisis, then the development, types, benefits and difficulties of barter instrumentwere examined. Afterwards, the examples of retail, corporate andinternational barter transactions were given, and the contribution of barter tothe enterprises in times of economic crisis was revealed.Findings-It was determined that barter can contribute the basic business functionsof supply, production and marketing. It’s an innovative alternative totraditional mentality based on interest. Barter can contribute to the country'seconomy by relaxing companies even in times of crisis. Besides, barter industryhas not well recognized, institutionalized and become widespread enough inTurkey yet.Conclusion-Barter is an effective way for businesses to sustaintheir long-term presence. Therefore companies should use it to formulatetheir strategies at all level and crisis management plans. It is seen that legal regulations are neededfor barter system to function properly.