The Beauty of Corporate Barter
What is Corporate Barter?
Corporate barter is a strategic exchange of goods, services, or underperforming assets between companies, without the need for traditional monetary transactions. In this process, businesses can trade their surplus inventory, excess capacity, or unused assets for items they need, reducing the burden on cash flow while still gaining value.
MBC 5-STEP PROCESS
Step 1
MBC acquires inventory of media purchases
We are always buying media opportunities to add to our ever-updating catalog.
We have established long-term partnerships with some of the nation's top media companies allowing us to secure large volumes of inventory at highly favorable rates. These relationships are vital, as the quality of our offerings is key to the success of any barter transaction.
MBC acquires inventory through various methods. Our partners often exchange inventory with MBC in return for the goods and services they need to run their operations. In other cases, MBC addresses a financial challenge for a partner in exchange for access to significant inventory at a preferred rate. This process of arbitrage enables MBC to offer companies significantly higher value for their underperforming assets.
Step 2
The client recognizes a need to recapture value from an asset or seeks funding for a new initiative.
In the regular course of business, companies sometimes end up with surplus or undervalued assets.
MBC can help identify a wide range of underperforming assets, including:
- Surplus inventory
- Slow-moving or outdated stock
- Discontinued products
- Previous season goods
- Short-dated items
- Real estate
- Various liabilities
- Aircraft (including unique assets like blimps)
- Non-core business units
- Capital equipment
Clients can leverage barter transactions to finance projects or initiatives such as:
- New product launches
- Sponsorship opportunities
- Marketing costs
- Production expenses
- Building-related costs
Step 3
MBC acquires the asset or finances the initiative through the selected transaction method.
MBC collaborates with the client to identify which of the three barter transaction types best aligns with their goals and objectives.
Each transaction involves two key components:
(1) MBC offers a higher payout to the client than what they would receive in the open market, and
(2) The client agrees to purchase goods and services at market rates through MBC.
Trade Credit: The client is compensated in the form of trade credit for their asset, which can be applied to future purchases from MBC, typically for media like broadcast schedules or digital campaigns. This option is ideal for clients who require spending flexibility, such as companies with fluctuating business cycles.
Cash: MBC provides cash to acquire an asset or cover a necessary business expense. In return, the client commits to purchasing a predetermined amount of media (or other goods and services) from MBC over a set period.
Combination of Trade Credit and Cash: In some cases, clients exchanging underperforming assets for trade credit may also need cash. MBC collaborates with the client's internal teams to create the optimal balance of cash and trade credit as part of the payment.
Step 4
MBC strategically resells the asset to customers outside of the client’s primary market channels.
Our primary focus is preserving the client's brand reputation and maintaining their market pricing structure.
When MBC acquires and resells a client's asset, our priority is to protect the client's brand integrity and market pricing. We recognize the importance of maintaining a company’s reputation, so we take great care to ensure that our remarketing efforts do not negatively impact the client’s existing customer base, market positioning, or pricing strategies.
To achieve this, we work closely with clients to define remarketing parameters that align with their business goals. This typically involves using specialized and separate sales channels that have been pre-approved by the client, allowing for the discreet distribution of assets without conflicting with the client’s primary markets.
Leveraging extensive expertise in remarketing and liquidation, MBC crafts tailored programs designed to handle even the most difficult business situations. Whether dealing with surplus inventory, underperforming assets, or non-core business units, our team is skilled at navigating complex scenarios and creating solutions that maximize recovery value. Our deep understanding of market dynamics and strategic channel management ensures that clients benefit from enhanced liquidity while safeguarding their brand and market standing.
Step 5
MBC delivers the good and services in a timely and professional manner.
Completing the process to satisfy everyone's goals and expectations.
In corporate barter, "fulfillment" refers to the goods or services clients acquire from MBC to complete a barter transaction.
For example, when fulfillment involves media, MBC relies on the client’s advertising agency for guidance on plans, specifications, and rates.
MBC ensures the same level of quality, pricing, and timing that the client typically expects, ensuring a seamless experience throughout the barter process.
Importantly, fulfillment aligns with the client’s regular, ongoing business expenses—there’s nothing additional or outside of what they would normally purchase.
The process is simple, efficient and effective in producing positive results.