Are you guys familiar with the payment agreements usually happening between mom & pop stores / bodegas / convenience stores and big distributors, brands, such as Coca Cola, Pepsico, or Kraft in the US ?
We are doing some research in this space to know more and understand better this market. Do you have any relatives working in this business ?
From what we've researched so far we've noticed that mom and pop stores usually need to pay after 10 days to 30 days and therefore, lack working capital and cash flow. We've also noticed that distributors or brands are unwilling to provide better terms for obvious cash flow reasons as well.
We are into this idea of building a fintech adjacent solution, that would become a one stop shop solution for mom and pop stores in terms of stock ordering, payments, etc..but foremost, it would be a tool to acquire data on the shop and provide the owner with the best credit line to extend the payment terms. We are thinking about offering some factoring solutions to the distributors as well to prevent any cash flow issues related to his treasury.
Consumer goods is a big industry and we believe that it is still relying on an old tech to operate.
Your inputs are more than welcome
thank you guys for your thoughts
