DrBeast
Plastic
- Joined
- May 14, 2019
- Location
- Los Angeles
Hello everyone,
Long time lurker, first time poster. I work as a sales rep, mostly dealing with suppliers in automotive.
Recently I met a young business owner at a rotary lunch. He runs a 4 man shop and was asking for advice on dealing with net 30/60/90 payment terms. They've only been in business for a few years and were running into cash flow issues trying to expand.
During my talk with him, I had an idea hit me that I was hoping to run by some of you guys.
What if there was an MFG like service that was free to use and access, but only incurred a transaction fee when a proposal went to production. You then get paid up front to your bank account(example, say 80% or 90% of the invoice up front) and your customer pays the site where the remaining amount gets sent to you and a fee is taken out with a CC, ACH, wire, etc.
The site is limited to US only companies, so no competing with Mexico or China, and is enforced with a floor on labor costs that match the business locales' minimum wage laws. Think of a similar website set up: drafts are uploaded, materials specified, etc
RFQ goes out, there are bids, select something you like, done.
Like ebay, there would be a penalty for people who place an RFQ but then never do anything to discourage that activity.
The transaction fee is 1% every 10 days up to a maximum all the way up to 180 or even 365 days. I envision it as a, "free to find leads with transactionally charged accounts receivable/payable management".
Excluding potential issues that the site would have to deal with (non-payment/non-delivery), would such a service be of any interest to shop owners?
Long time lurker, first time poster. I work as a sales rep, mostly dealing with suppliers in automotive.
Recently I met a young business owner at a rotary lunch. He runs a 4 man shop and was asking for advice on dealing with net 30/60/90 payment terms. They've only been in business for a few years and were running into cash flow issues trying to expand.
During my talk with him, I had an idea hit me that I was hoping to run by some of you guys.
What if there was an MFG like service that was free to use and access, but only incurred a transaction fee when a proposal went to production. You then get paid up front to your bank account(example, say 80% or 90% of the invoice up front) and your customer pays the site where the remaining amount gets sent to you and a fee is taken out with a CC, ACH, wire, etc.
The site is limited to US only companies, so no competing with Mexico or China, and is enforced with a floor on labor costs that match the business locales' minimum wage laws. Think of a similar website set up: drafts are uploaded, materials specified, etc
RFQ goes out, there are bids, select something you like, done.
Like ebay, there would be a penalty for people who place an RFQ but then never do anything to discourage that activity.
The transaction fee is 1% every 10 days up to a maximum all the way up to 180 or even 365 days. I envision it as a, "free to find leads with transactionally charged accounts receivable/payable management".
Excluding potential issues that the site would have to deal with (non-payment/non-delivery), would such a service be of any interest to shop owners?