Back to NewsSometimes the biggest killer of business growth isn’t a lack of sales—it’s the mental and financial drain of collections. Whether you are the one chasing a cheque or the one struggling to write it, the “cash crunch” creates a cycle of avoidance that halts momentum. Here is how BarterPay can be the circuit breaker your business needs.
When You Are the Creditor: Turning “Blood from a Stone” into Value
We’ve all been there. You delivered the product or finished the job, and the invoice is now 90 days past due. You could go the “hard collections” route. In many regions, there are specialized collection agencies and lawyers available via BarterPay who can play hardball for you.
But what if you know they simply don’t have the cash? Or what if it’s a client you actually like who is just hitting a rough patch?
Instead of waiting for cash that may never come, try a Barter Settlement Strategy.
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The Offer: Tell them, “I know cash is tight. If you can’t pay the $3,000 in CAD, I will accept the balance in Barter Credits today.”
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Alternative: If they aren’t on BarterPay yet and don’t want to join, see if they will pay you in product (inventory you can actually use or sell via CAD or BarterPay).
Example 1: A contractor is owed $2,000 by a local restaurant. Instead of suing, the contractor accepts BP$3,000 in gift certificates. The restaurant clears the debt at their food cost (approx. $900), and the contractor sells those gift certificates to BarterPay for Barter Credits that he uses for Working at Heights Training for his staff, and his Bookkeeper.
Example 2: A graphic designer is owed $1,500 by a print shop. She accepts the payment in Barter Credits, which she then uses to pay for her office cleaning through the BarterPay network.
When You Are the Debtor: Stop Ghosting, Start Trading
If you are the one in a cashflow crunch, the worst thing you can do is “do a runner” or ghost your creditors. Most people are reasonable if you keep the lines of communication open.
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Stay in Touch: Don’t let their calls go to voicemail. It creates animosity and leads to legal action.
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Make a “Barter” Offer: Propose settling all or part of the debt using Barter Credits, potentially offering more in barter than you owe in CAD.
The Math of Why This Works:
As a debtor, you can offer more in barter than you owe in cash because your cost of goods (COGS) is lower.
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Magazine Example: If a publisher owes a supplier $3,000, they might offer BP7,000. For the publisher, the cost of adding a couple more ads for BarterPay members to a magazine is near $0, but the supplier gets BP7,000 of real value through the network. A win-win.
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Restaurant Example: To settle a $2,000 debt, a restaurant might offer BP4,000 in credits. Factoring in “breakage” (certificates that are lost or never used) and the actual cost of food/labor, that BP4,000 settlement might only cost the restaurant $800 in real-world out-of-pocket expenses.
The “Mental Equity” of a Clear Ledger
Settling a debt with Barter Credits is about more than just numbers—it’s about opportunity cost.
- For the Creditor: It allows you to stop “chasing” and start “building.” Every hour spent on the phone arguing about an old invoice is an hour you aren’t marketing to new, high-paying customers.
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For the Debtor: It clears the mental fog. Many business owners miss out on new opportunities because they are too busy avoiding calls from creditors.
The Rule of Flexibility:
While BarterPay requires a 1:1 valuation for standard transactions (no price gouging!), settling past-due CAD debts is a different ballgame. The rules are flexible here to encourage settlement.
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Creditor asks for more: “I’ll take BP9,000 to settle this $5,000 cash debt.”
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Debtor offers more: “I can’t pay the $2,000 cash, but I’ll give you BP4,000 today to call it even.”
The Bottom Line
Don’t let an unpaid invoice sit on your books until it’s worthless. Use the BarterPay ecosystem to settle up, clear your mind, and get back to growing your business.
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