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. .
Wal-Mart finally into banking
Wal-Mart has been looking for a way to get to the banking game. Congress blocked non-banking entities, such as retailers, from starting their own banks in 2007. Sam’s Club has seen some shrinking revenues but has decided to give this trial program a go, according to the Wall Street Journal. Sam’s Club members that are small business owners or small business accounts with Sam’s Club can apply for loans from $ 5,000 to $ 25,000, with a 10 year, 7.5 percent interest term.
Trying to attract greater membership
Sam’s Club has been seeing some revenue troubles. 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. Wal-Mart already offers some financial services, like check cashing and VISA check cards, as well as MoneyGram locations in stores that offer cash advances, payroll loans, and money orders.
Is this the start of a beautiful friendship?
The Sam’s Club online personal loan will only be a pilot program. According to Business Week, the loans will be for start up businesses, and especially for businesses run by women and minorities. If the program becomes successful, a Sam’s Club business membership can be quite hard to pass up.
Additional information at these websites
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
