subject: Does Your Company Need Private Label Credit Cards? [print this page] Does Your Company Need Private Label Credit Cards?
In today's world, many consumers that previously relied on Visa or MasterCard need the services of an in-store, private label credit card. This is a type of revolving credit account, usually exclusively available for use at the store whose name is on the card. This type of retail financing is experiencing a large resurgence as more consumers are finding their traditional credit card lines cut or terminated altogether.
Additionally, many manufacturers, distributors and retail businesses with large ticket items need a way for consumers to get the credit they need to maintain or increase sales. While many banks offer these types of retail financing programs, the problem lies in the fact that larger banks will only deal with retailers who have over $500 million dollars in sales, have a physical rather than an internet presence, of a host of other restrictions. This is a comparatively new situation that has only taken hold since the "credit crisis" emerged in 2008.
This leaves many smaller and mid-sized companies with a lack of credit for those consumers who wish to finance purchases but are unable to do so due to the lack of credit from a at traditional credit card.
Private label credit cards also provide a retailer with the ability to generate repeat sales because the line of credit is tied exclusively to the brand name of the retailer. Other options are available that can make such financing more attractive such as "interest free" period of 3, 6 or 9 months, along with other incentives for customers to apply.
Such financing programs work by having a potential customer apply for the card in the store or retail location, typically referred to as the "point of sale". Usually, a decision regarding an approval for a set amount of credit can be gotten in as little as 30 seconds while the customer waits. Upon approval, the customer may then go ahead and proceed with the purchase, and the store receives the funds for the merchandise from the private credit card issuer. The consumer then pays the debt directly to the lending source, rather than the store.
For those retailers that may already have a financing program in place, it may be possible to find a second source to help fund some of the applications that may have been previously rejected or turned down for whatever reason. This will help convert more applications to sales, and help drive repeat business going forward from customers who may have previously walked away.
Does your company need a source for same as cash financing, private label credit cards or other types of alternative retail financing? Check out the link below for more information.
