Sam’s Club, a division of Wal-Mart, will start offering online cash advance through Superior Financial Group LLC. The loans are tailored for entrepreneurs and small businesses. .
Wall Mart getting into financial services
Wal-Mart has been looking for a way to get into the banking game. In 2007, Congress blocked non-banking entities, including retailers, from opening banks of their own. As outlined by the Wall Street Journal, Sam’s Club is giving this pilot program a lash after experiencing some shrinking revenue. The loans carry a 7.5 percent interest rate for ten years, and small businesses or small business owners can apply for $ 5,000 to $ 25,000 if they are Sam’s Club members.
Trying to attract greater membership
Sam’s Club has been seeing some revenue problems. Sam’s Club closed 10 of their stores recently. The program would offer more services to small company customers, who make up a significant part of their customer base. Check cashing and VISA check cards are already accessible at Wal-Mart stores, and MoneyGram locations with pay day loan, cash advances, and money orders available there.
Will this work out?
The Sam’s Club online cash advance will only be a pilot program. The loans in this case will largely be geared towards women, minorities and startup companies, according to Business Week. It could be quite difficult to pass up a Sam’s Club membership for business owners if it takes off.
Find more info on this topic
online.wsj.com/article/BT-CO-20100706-710011.html
businessweek.com/news/2010-07-06/wal-mart-s-sam-s-club-to-test-online-loans-to-members-update2-.html
