Recently there has been a rise in the presence of bartering services. It make sense that in an economic recession, people are looking for ways to make these types of transactions. Individuals and companies still want the products and services they need, but without spending their precious cash.

When many people think of barter, they often think of one-to-one direct trades that occur under-the-table between individuals or on swapping sites, like Craigslist. There have also been a number of community currencies popping up that allow individuals and companies to earn “points” or “credits” by trading goods in an online marketplace. There is also the more controlled form of a community currency that is a trade exchange. This alternate form of currency is managed much like a national currency and transactions are facilitated by brokers.

So what is the difference between a swapping site, community currency and a trade exchange? And how should you or your business participate?

One-to-one direct trades: These are great for individuals who are hoping to swap their own personal goods. Individuals can connect with others who are willing to trade their goods and allows people to get rid of personal items. For example, neighbors and friends can help each other by swapping babysitting for car washes.

The main problem with these trades is that individuals and companies need to have exactly what the other wants, at the same time, in equal amounts.

Community Currencies: These are a lot like the direct one-to-one trades in that people are often trading personal goods, services or services from small businesses. The currencies alleviate the direct trade problem of having exactly what the other person wants at exactly the same time in the same amount. When a company earns credits from selling their good or service, they are then able to take those credits to any other company that is willing to sell their product or service for the community’s currency.

Searching for, arranging and fulfilling transactions is the buyer and seller’s responsibility. There isn’t much oversight of the transactions and their fulfillment. Additionally, the strength of the economy in regards to the caliber of participants, the quality of goods available and the value of the trade dollar is not monitored. For smaller, personal exchange of goods this can be a good method, but what about those businesses who have larger, more intensive needs?

Trade Exchange: A trade exchange takes a barter currency to the next level by monitoring and facilitating transactions and the exchange’s economy. Individuals generally don’t participate in trade exchanges, but a b2b trade exchange can help companies use barter as a strategic business tool to provide real value to grow their business. The exchange will facilitate sales and purchases, track transactions and provide record keeping for appropriate accounting and taxes.

Companies work with a broker who can proactively find ways to spend their barter dollars and save cash. You have someone who knows the products and services that are available and can help companies find what they need. And if the product or service isn’t available the barter exchange will help obtain new companies to make the transaction possible, where on a swapping site you are limited to the products and services that are already available.

Do you or your company barter? And have you found a method that works best for you?