LV Internet firm teams with GMAC, focuses on trade show commerce

Phil Levine

Monday, March 6, 2000 | 11:08 a.m.

A Las Vegas-based technology company hopes to profit by accelerating the speed of business-to-business commerce.

Officials from Profitscape Inc. are touting the company's eNet30 financial solution as a means of both expediting -- and simplifying -- business-to-business transactions.

The eNet30 is designed to replace traditional payment methods such as C.O.D., letters of credit and high interest credit cards.

Profitscape expects eNet30 will make its biggest impact at trade shows -- a traditional venue for business-to-business commerce -- although companies can use the service elsewhere.

"It's a free service for the buyer, as the vendor pays a 2.5 percent fee for each transaction," said company spokeswoman Julie Borges. "That's a slightly higher rate than Visa charges.

"But in addition to being free for the buyer, eNet30 also streamlines and simplifies the buying process for businesses."

When a business is looking to purchase goods or services from another company using the eNet30 system, the vendor receives approval for the transaction from Profitscape.

That approval can be obtained through a variety of means, including phone, e-mail, fax or at a Profitscape trade show booth.

Profitscape President Kevin Treider said his company's partners in this venture are key to eNet30's future success.

"We have exclusive agreements with GMAC Commercial Credit (a division of General Motors Inc.) as well as Miller Freeman Merchandise Group, the world's largest trade show organizer," he said.

"We're not a bank, we're a technology company, so we don't actually approve the credit lines. That's GMAC's role. But our technology helps provide cost-free credit, with a higher credit line, to the buyer."

Treider expects the strategic partnership with GMAC and Miller Freeman will help Profitscape reach sales of more than $35 million this year.

However, that number is expected to grow exponentially.

"We hope to capture a respectable portion of the business-to-business market," he said. "Over the next few years, I think we will reach somewhere between $300 million and $500 million in sales."

Profitscape is expected to soon join a burgeoning list of high-tech companies making the leap into the lucrative world of initial public offerings.

"We may be looking at an IPO within a year or so," said Treider.

Founded in 1998, the company currently employs about 50 people, primarily in the areas of customer support services and technology development.

Though Las Vegas is not viewed as a mecca for high technology firms, Treider says his company is uniquely well-positioned to capitalize on their hometown location.

"This city is the trade show capital of the world, and that means we will be associated with one of the capitals of business-to-business commerce."