small-business-cc

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Small Business Customer Line Of Credit

Timofei Bolshakov, Ravenbill, LLC

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Elevator document

What is it all about?

Everybody knows about credit cards from Barnes and Noble, TJ Maxx, or major airlines like United, Delta or Southwest.

Those credit cards let loyal customers accumulate reward points or loyalty tokens. Cardholders can get some advantages, additional services, and discounts, providing value for the customer and the business.

Our idea is to enable small and medium businesses, such as local bars/restaurants and grocery chains (Detweilers), to issue and service customer credit lines.

We want to make customizable credit lines accessible even for a business that will only ever issue a dozen individual lines.

According to Quickbooks ~55% of small business B2B transactions are done with the customer credit line, we can provide a common tool for that market.

Credit line transactions can be done using a QR code on the phone or OTP (one-time pin).

We will provide a tool for small businesses to establish such customer credit lines.

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How is this project different from the competition?

We are removing the Bank from the credit relationship between the Creditor and the Debtor

- Creditor has the risk
- Creditor reaps the benefits
- Really small companies can become Creditors
- We provide all the documentation for the small court  ### We are trying to democratize this area. ### Any local business should be able to provide a credit line and establish a credit line. ### We will assist in setting up the credit line, transaction processing,  rewards accumulation, and several types of discounts. ### Credit line providers should be able to completely self-service on the web, without contacting us. ### Self-service will include elements of design and customizing the 'white-labelled' Android/iOS app and website.

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Competition.

Synchrony Bank is issuing cards and providing credit lines for big retailers (TJ Maxx, etc) and some gas stations.

Barclay Bank US is issuing cards and providing credit lines for Barnes and Noble, Gap/Banana Republic (recently), and a couple of Hotel lines.

Chase serves several airlines.

Citi Bank is issuing cards and providing credit lines for gas stations (several companies) and American Airlines.

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Why others do not do that?

Barclay Bank US and Synchrony are expanding their market footprint and competing with each other.

They seems to go “from the top” - starting from big retail chains, etc.

They seem to be unable to white-label and customize the design to scale and meet every little business. (Barclay does it MUCH better than Synchrony).

For us that will be the goal.

Finally, older businesses have software dating back to the previous century, with layers and layers of accumulated historical “cruft”. They need a complete redesign to scale for little businesses.

That is what we are doing - complete design from scratch.

It seems that by being lean we can significantly decrease the transaction fee imposed by the banks on businesses.

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Goals

MVP (minimal viable product) - Issue a credit line for money/stuff exchange with Artem.

North Star - enable it for every small business in the US.

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Mission Statement

Architecture

Credit Line Type Ownership