Micro-businesses — event organizers, photographers, personal trainers or a repair person — often don’t have protection in the (common) event that their client cancels last minute. On the other side of the transaction, these types of service providers also often have to chase clients down to get paid after they’ve completed the task.
Risk is also high on the client side, as there’s no guarantee that services will be completed after an initial upfront payment.
Caleb Gilbert grew a tutoring business while attending Kennesaw State University. “I was… getting a lot of business, but [students] would often not show up or cancel at the last minute. It would leave me in a bad financial bind,” says Gilbert.
Due to the uncertainly, he decided to go back to his old bartending gig despite the bad hours. He started thinking about why there wasn’t a way to protect service providers and customers engaging in one-time transactions.