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Let's make a deal.


Imagine a company with US$100,000 worth of excess paint that wants to use that asset to pay, let's say, an outstanding bill for an advertising campaign. Sounds odd, but these kinds of transactions are possible thanks to aCambio, a Mexican company began in 2000 to promote barter barter: see exchange.
barter

Direct exchange of goods or services without the use of money or any other intervening medium of exchange. Barter is conducted either according to established rates of exchange or by bargaining.
 between small companies. "We discovered that this market could become more efficient and could grow exponentially with a technological platform;' says Agustin Alban, aCambio's president. In 2005, the company handled $30 million in the exchange of goods and services In economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility (unless the "good" is a "bad"). It is often used when referring to a Goods and Services Tax. , a figure it expects to more than triple to $100 million by 2007. Poor access to credit and the complexity of getting that credit to small and medium-sized companies in Mexico has been key to the system's growth. "Barter as a financial system works almost like banking" says Alban, who predicts that the market potential in Mexico alone is $10 billion. In the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , 450,000 companies now do business via barter and, on a global scale, exchange of goods over money is growing at 20% a year, according to according to
prep.
1. As stated or indicated by; on the authority of: according to historians.

2. In keeping with: according to instructions.

3.
 the International Reciprocal Trade Association, which promotes the practice. Businesses say barter is good for the bottom line. Although not yet a quick way to do business, "aCambio has allowed us to conduct business that we would have otherwise never have done through normal selling processes" says Juan Manuel Several Spanish and Portuguese princes wore this name:
  • Juan Manuel de Rosas, a nineteenth century Argentinian politician and dictator.
  • Juan Manuel, Lord of Villena, son of Ferdinand III of Castile
 Saavedra, purchasing manager A Purchasing Manager is an employee within a company, business or other organization who is responsible at some level for buying or approving the acquisition of goods and services needed by the company.  at Grupo Pando, which operates five food companies, aCambio, which employs 47 people, collects a 10% commission on sales, 2% on purchases and an annual membership fee of $325. So far, it has 1,000 customers.
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Copyright 2006, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Title Annotation:aCambio, a barter services company's dealings
Comment:Let's make a deal.(aCambio, a barter services company's dealings)
Author:Rueda, Marisol
Publication:Latin Trade
Article Type:Brief article
Geographic Code:1MEX
Date:Feb 1, 2006
Words:267
Previous Article:Aquatech.(REGIONAL)
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