About the Ormita Commerce Network Barter Exchange Platform
by Selina Markham on Sep 04, 2013
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Ormita is the world's largest multilateral reciprocal barter exchange system, with subsidiaries that conduct business worldwide and offices in 23 countries. ...
Ormita is the world's largest multilateral reciprocal barter exchange system, with subsidiaries that conduct business worldwide and offices in 23 countries.
-Allows a business to swap / exchange their own product or service for things they need
-Reduces the cash outlay of the business
-Every purchase is matched with a new sale
-Purchase of international advertising, trade shows, translation, legal and accounting services etc
-More sales result in more customer feedback and less cost for “give-away” samples
Barter Provides a Mechanism to Improve the Balance Sheet
-Goods acquired using barter are still counted as an increase in the assets of the business.
-Bank capital guarantees reduce available lines of credit - barter capital does not.
-Allows the organisation to meet assets and/or equity ratios for other (cash) subsidies and loans.
-Lets a business obtain future international lines of credit guaranteed by countertrading operations.
The use of networks such as Ormita can help countries to build solid industrial bases, by balancing purchases of foreign goods and services against domestic exports in a simple, but creative manner; while addressing World Bank and IMF concerns of “bilateralism” and anti-competitive behaviour. This form of trade finance has a multiplier effect as it increases overall purchasing power which helps to reduce unemployment, recover potentially depreciating (or lost) value and helps a country’s development.
"International Trade Flows Facing The Global Credit Crunch: The Multilateral Barter Trade System". University of Turin, Italy. Faculty of Economics. March 2012
“Businesses often have excess capacity in their own goods, services or infrastructure, even more so when the financial cycle slows and credit tightens. Business people find that using capacity to source needed goods and services is an attractive alternative proposition to conventional sales and credit if it can increase sales, ease cash flow or reduce reliance on conventional credit.”
"Capacity Trade and Credit: Emerging Architectures for Commerce and Money". City of London Corporation, ESRC, UKTI, BIS joint Report. City of London Corporation. Dec 2011.
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