Fastest Way To Cycle Money From Customer To Supplier?

[jriddick]

I have a product I want to sell. I have a supplier. I know how I'm going to sell it.

How can I set up a payment system where I tell the client that I will mail it out as soon as their payment clears, then I can redirect the supplier's portion of that payment to them immediately?

In other words, who can I use that will be the fastest? I need someone that will take a credit card and deposit the money in my bank within like 3 days, or even sooner if possible. Then I can wire most of that money to the supplier.

I need to do this because I have very little cash flow.

Is there a way to accomplish this?

 

[spitfire]

Best option - negotiate credit from your supplier. Then you have 30 days+ to play with. Probably not likely if you are starting out.
Second best option, find a supplier who accepts Paypal. Then pay via your Paypal account. Even better, if you have a track record with Paypal, get the Paypal visa card and pay your supplier that way
Another option, max out some credit cards and hope that will give you enough cash flow to bridge the gap
Worst case, add a couple of days lead time on your site, watch conversions drop but leave yourself enough time to fulfil the order. (Not good service IMO, but I did it years ago on ebay stuff we imported from China and had a lot of customers that were prepared to wait 2-3 weeks if you can believe that.)

Good luck bro.

 

[spitfire]

I need someone that will take a credit card and deposit the money in my bank within like 3 days, or even sooner if possible.

I guess I only half-read your post. Paypal decrease the payout time as you do more business with them. Right now we are on 2-3 days in Europe but it used to be 5-7 days a few years ago. Many credit card gateway providers take 30+ days so this is pretty good.

Again I recommend negotiating paying paypal, paypal credit card or best credit with your supplier. If your supplier is in China good luck getting credit though - it's not going to happen.

 

[Mightier]

I have a product I want to sell. I have a supplier. I know how I'm going to sell it.

How can I set up a payment system where I tell the client that I will mail it out as soon as their payment clears, then I can redirect the supplier's portion of that payment to them immediately?

In other words, who can I use that will be the fastest? I need someone that will take a credit card and deposit the money in my bank within like 3 days, or even sooner if possible. Then I can wire most of that money to the supplier.

I need to do this because I have very little cash flow.

Is there a way to accomplish this?

Yeah, Spitfire brought up the best way - get terms from your supplier. If you have a decent personal credit line and good payment history, that may be enough. A lot of businesses are pretty hesitant to extend credit based on personal payment history. Sometimes you can sweet talk it out of them if you call up and are professional. Any businesses that can vouch for your payment history will go a loooong way. Terms are usually net-30.

 

[jriddick]

Best option - negotiate credit from your supplier. Then you have 30 days+ to play with. Probably not likely if you are starting out.
Second best option, find a supplier who accepts Paypal. Then pay via your Paypal account. Even better, if you have a track record with Paypal, get the Paypal visa card and pay your supplier that way
Another option, max out some credit cards and hope that will give you enough cash flow to bridge the gap
Worst case, add a couple of days lead time on your site, watch conversions drop but leave yourself enough time to fulfil the order. (Not good service IMO, but I did it years ago on ebay stuff we imported from China and had a lot of customers that were prepared to wait 2-3 weeks if you can believe that.)

Good luck bro.

Unfortunately that's not really an option. I don't want to involve the supplier at all.

All I need is some type of merchant account/credit card processor who will have the money in the account in 3 days.

Then I could wire the money to the supplier.

There's nothing like that.

 

[brentb]

You need better cash flow for this business, only way to do that without cash is credit.

There are CC processors who will put the money in your account on 7 days but I have never heard of anything less. Beware, short payment times mean they will literally ass rape you with fees. Plus they will still probably hold 10-40% in reserves anyway.

Can you get credit from your local bank for short term? Then use a real merchant processing solution? Take out a personal loan or something. Also, its pretty normal to ask for NET terms from your supplier IMO.