CASH flow is the lifeblood of small business and holiday periods like the Easter school break and long weekend are often associated with non-stop spending.

Statistics show the holidays can be a tough time for small and medium enterprises, as staff take annual leave, regular customers redirect their spending or take a trip away and many businesses take a break. Cash flow can dry up and many businesses feel the pinch.

Separate surveys in recent years have shown between 60 and 80 per cent of businesses experience cash-flow disruption at Easter.

A recent survey by Bartercard found maintaining cash flow through quiet periods - such as the summer holidays and the depths of winter in southern Australia - can be a key advantage of joining the barter network.

Bartercard Australia managing director Trevor Dietz says barter trade can help offset cash flow during slow business periods, when stock levels are low or excess stock is held.

"Small businesses, particularly those that are product-based, are able to offset retail downtimes with barter trade with other small barter businesses in the same situation and keen to trade to help with cash flow," he says.

"The ability to use trade dollars (the terminology for barter currency) to cover business expenses such as stationary, printing and cleaning allows members to conserve cash for other essential costs where barter trade is not available.

"This could be to reduce interest-bearing debt, to pay for unscheduled expenditures and for investment in the growth of the business."

Mr Dietz says barter trade can be helpful to small businesses, particularly when they are starting out.

"It is well known that ensuring initial cash flow is critical to survival," he says.

"More and more small business owners are coming to realise this. Last year saw Bartercard membership grow by 11.3 per cent to more than 25,000 members - the 15th year in a row membership has grown.

"Barter trade around Australia and internationally is a strong and growing sector. During 2006, the monthly average of barter trade through Bartercard Australia was more than $48 million, with December a record month of more than $50 million," says Mr Dietz.

Bartercard members traded more than $1.35 billion worth of goods and services internationally last year in the 12 countries with Bartercard operations.