I would like to start offering Credit lines/cards to my customers. What’s the first step?

Question by madisonspy: I would like to start offering Credit lines/cards to my customers. What’s the first step?
I have auto repair business and can now accept visa and mastercard credit payments. What I would like to start doing is offering credit in the form of a credit card. Target has a Target visa, Cabellas has the cabellas card, kohls has a charge card etc. What steps do I need to take to start this, and is it cost effective if I am primarily a small business?

Best answer:

Answer by stan c
You’re taking a big chance of putting yourself out of business in the long run. You’re better off just accepting the credit cards and pay their rate. Have an attorney check business’s that tried and failed. You’d be surprised of the numbers.

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2 comments

  1. coelus003 says:

    if you want to offer credit lines, you would need to establish yourself as a lender, get a lending liscense, and loan doccument software In order to do lending, you would need to have something to secure the loans with on your end, some form of capital or assets that qualifies you to be a lender. The best thing for you to do, is find a local bank, and work out a deal with them. Lending software is very expensive, if you did it through a bank you would only need a liscense, and the bank is already a qualified lender. You can do the loans through your business, but submit them to the bank as the real source of the loan.

  2. frankie b says:

    I would say you could offer installment payments with interest, but if you want a card to be issued like Kohl’s and target be prepared to shell out big money. Just let customers know on jobs over x amount you will be willing to accept installments. I would start there.

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