People often post asking for your pain point so they can consider starting the business that would solve it. Here is what I need:
A B2B (non)lender that does everything except provide the capital. Just a service that my business can partner with that lets me extend Net30/60 credit to another business and you manage that for me. Not a lender, I don’t need capital, I just need someone to manage me extending credit to my business customers like I do anyway.
I would send my potential B2B customer to you. You would qualify them (quantify the risk based on their credit worthiness), write the contracts, and then if the customer doesn’t pay me after the term, you sick em’ as if it was your money.
Make it as simple as possible for me so I can focus on growing my business. In my niche, credit terms are rare, so having more confidence in my qualification/ repayment system would allow me to take a lot of market share. But the opportunity is huge because there are a ton of B2B businesses that offer credit terms already. Having to manage that process is a huge pain point. Many turn to lenders so they don't have to manage it themselves, but the interest is high. With this service, they wouldn't have too.
Posted by Due-Tip-4022
5 Comments
Have you thought about invoice factoring? It’s a way to get quick cash by selling your unpaid invoices to a factoring company.
Instead of waiting for clients to pay (which can take 30-90 days), you can get 70-90% of the invoice amount upfront.
The factoring company collects the payment from your clients and gives you the rest, minus a small fee. It’s a great way to improve cash flow without taking on debt.
I used to work for a goods manufacturer and distributor so we relied heavily on these types of services to get the majority of our invoices upfront for cash flow purposes – not sure if this helps, but I figured it’s worth bringing up.
Hope this helps ✅
That’s interesting. I’m running a b2b payments/invoicing company, let’s talk. I’ve sent you a DM.
Check out http://www.creditkey.com
I’m not affiliated, just a happy customer. They offer exactly this.
Like it’s been said twice so far, what you described is a factoring company. I worked with one of the leaders at the time in the trucking industry when I was a smb owner. Being an industry leader, it was definitely not cheap. It was like $7k a year. But I was happy with the service. If whatever you looked into was too expensive then you need to vet the competitors.
If this service doesn’t exist in your industry, like if the sales are large $ and infrequent, then you need to handle this yourself via legal recourse if the client doesn’t pay (contracts) and credit lines to keep you afloat until the 30-90 day pay period.
I was a senior executive at a regional bank – managing the credit card and business card portfolios. My understanding is that you are looking for a loan servicer (the loan you extended to your clients). I have ventured out by myself now and would like to chat. Let me know and I can DM you.