I have a question that I am looking to get some feedback on concerning revolving credit terms... Has anyone ever done it? Offered these terms to your customers? My vision is to offer unsecured lines of credit to my customers... well I guess you would call them "members" in an "exclusive" buying club... Much like Fingerhut, and IKEA, we would offer our own items for sale in which the credit could be used on.. to gain access to a line of credit, a prospective customer would "sign up" and pay a nominal enrollment fee if approved, followed by monthly membership costs.. They would have unlimited right to purchase any of our products up to the amount of their credit line..
Any experiences in this matter? Assuming I am liquid to the NET amount of credit available to every member, Im not able to find any information concerning the following.....
1. Membership to the 3 major credit reporting agencies.
2. Offering my members an actual "card"... though impractical because the club will be online only, Its still something I believe will help legitimize the club in the eyes of our members. Where might I find a company that will make these cards?
3. Are there companies that offer credit management services?
I personally believe my business model (though not fully disclosed here) is bulletproof for success. There will be NO time when we run the risk of a loss if/when a member defaults on their credit line. My only hurdle is the implementation of revolving credit and the management of so many accounts... Being a CB (certified bookkeeper) I can handle a handfull of accounts, but thousands? lol.. just hoping to outsource that task lol.
Any and all help/feedback is appreciated!