Sam’s Club, part of the Wal-Mart empire, is going to start offering online loans from Superior Financial Group LLC. The loans are for small business owners and entrepreneurs. Superior Financial is a Small business Administration lender, and also the trial program will offer small companies and small company owners that are Sam’s Club members loans as a way to expand services to them.
Wall Mart getting into financial services
Wal-Mart has been looking for a way to get into the banking game. Congress blocked non-banking entities, like 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. The loans accessible to small business owners that are members with Sam’s Club will range from $ 5,000 to $ 25,000, and will carry a term of 10 years at 7.5 percent interest.
Trying to attract greater membership
Sam’s Club has had a contraction in revenues. The Costco competitor had to shutter 10 stores just lately. Small business owners are a significant portion of their customer base, and a business loan program would serve to attract or retain small businesses as customers. Check cashing and VISA check cards are already available at Wal-Mart stores, and MoneyGram locations with payday loans, cash advances, and money orders available there.
Will this pan out for Wal-Mart?
So far, Sam’s Club offering online cash loans can be a pilot program only. As outlined by Business Week, the loans could be for start up companies, and especially for companies run by women and minorities. If the program becomes successful, a Sam’s Club business membership will be quite hard to pass up.
Additional details 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
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