Time Banks

Time Banks are systems of exchanging one service for another by using labor-time as a currency

Services provided result in labor-time units credited to a time-bank that may be redeemed for other services.

Valuing Time to Value Contribution

The origins of time-based currency exchanges go back to the 1800s in Cincinnati and then Europe, but the first time bank was created in Osaka, Japan in 1973, Japan by Teruko Mizushima, a Japanese woman saw time as constituting an alternative form of trade to money. Participants contribute time when their lives were less busy and draw down on this later when necessary. 

The Volunteer Labour Bank, later named the Volunteer Labor Network, became the hub a national network of time banks, expanding to the US in the 1980s. The organization attracted primarily middle-aged women in Japan often caring for their elders, and creating a space for them to organize mutual aid and to seek relief and support. 

Time banks are designed to rethink how economies function and what they value most by assigning different weights to work that may not be not valued in the formal economy. The term “Time Banking” was coined and trademarked by American lawyer Edgar Cahn, who advocated its use to supplement government social services.

In creating equity amongst contributions based on amount of time spent on the activity, Time Banks are able to offer credit in an organized fashion for previously non-compensated tasks such as volunteering for an organization. This allows organizations to record and track accountability and contributions fairly amongst participants.Meanwhile, software companies were left out of the equation as an early stage tech company typically has a fairly light balance sheet: no hard assets, and cash flow deferred into the future, the greatest value being intangible. RBF is not new – it was used to finance oil exploration repackaged to fund growth companies. What is new is the use of RBF instruments to fund the early stages of private company growth.

Example Time Banks

The Volunteer Labor Network | Timebanks USA | ASNTB | JCSA | NALC | Time Bank of India | ArchCare

Are Time Banks a good source of capital for you at this stage?




Key Performance Indicators




Key Performance Indicators

When it Works Well

Support within a Larger Business Ecosystem

Time banks were designed to solve for underserved social safety nets in the US and Japan, but are now also used to support business ecosystems. In Los Angeles, the Arroyo SECO Network of TimeBanks (ASNTB) established a dual-currency loan fund for members who wish to start a small business or a worker-owned cooperative. The fund lends money to ASNTB members through a financial partner, the Permaculture Credit Union. Members of the TimeBank then use time credits to pay associated loan-processing fees. In comparison to tech incubators where access to mentors and capital is often “free” but in the form of scouts on the lookout for future venture capital investments, ASNTB’s Local Economy Incubator match borrowers with needed skills in business models, branding, and communications.

Challenges to Time Banks

Not Widely Available to Support Businesses or Non Profits

Time banks are being reconsidered as part of a local business ecosystem, but most focus on individual time contribution in exchange for individual benefit.  

Difficult to Sustain Operationally 

Time banks have overhead costs and complexity when managing multiple rices for different services, and ensuring frequent and healthy exchange of services. They typically struggle to operate with volunteer organizational and operational labor, and must seek financing to manage and pay for goods and services which cannot be purchased with time bank-issued labor-time credits. 


Trends in Time Banks

Mutual Aid for COVID19 Response

Time banks have seen a resurgence of interest as major gaps in the social safety net were revealed during the global COVID19 pandemic. 



Senior Care Time Banks

In locations with an aging population, Seniors participate in Time Banks in order to strengthen ties with their communities and seek help outside of the formal health care and service economy. 


Before You Consider Time Banks

  • Do you have a set of skills that would benefit from trade or exchange from local participants?
  • Are there enough participating people that would benefit from your services? 

Exploring Time Banks

  • Can you find a local Time Bank to see if it is actively managed and used by participants?
  • Do you have an aspect of your local business ecosystem dependent on volunteerism that may benefit from a more organized time bank approach?

Discover Alternative Capital

Revenue-Based Finance is one way to grow your company, and you can choose other capital types as an alternative or pair and combine  at different stages of your business. Consider these alternative capital sources or explore our Capital Library