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Most Service Businesses Engage
in IOU (I Owe You) Transactions with Their Customers


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In this episode of Money Creation Explained, we are going to cover how Most Service Businesses Engage in IOU (I Owe You) Transactions with their Customers.

There are hundreds of types of service businesses and the majority operate on some kind of IOU, where they provide their service first and get paid after the service is completed. Most businesses do not even realize that they are extending a form of IOU credit to their customers. This usually happens within that same day, which might be 15 minutes, 30 minutes, 1 hour, or 2 hours, etc. later when the customer leaves from the place of where the business or service has been provided.

A few examples of these types of businesses include sit down restaurants, bars, hair salons, auto mechanics/service shops, home repair services, etc. Most of these businesses provide services first to the customer, and there is no credit check, identification required, or collateral necessary. Many times, the customerís basic information such as name, address, and phone number is not even required prior to service being performed. It has become standard practice for most service businesses to provide the service and the customer pays immediately afterwards. The IOU Notes platform takes this already established practice and extends it for a longer timeframe/pay later option and utilizes this model to service and product based businesses and individuals operating as sole proprietorships.

IOU Notes is a peer-to-peer credit and loan platform.

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