Wal-Mart's Sam's Club to begin offering loans of up to $25,000

Posted Jul 7, 2010 by Andrew Moran
Sam's Club, a division of retail giant Wal-Mart, is now offering loans upwards of $25,000. Although Wal-Mart was declined to become a bank a few years ago, it hasn't stopped them from offering financial services, including business loans.
Photo by code poet
According to National Public Radio, Sam’s Club, a division of Wal-Mart, is now offering small business loans of between $5,000 and $25,000, which is another step into the financial world. Even though Sam’s Club is promoting the loans, Superior Financial Group, a federally regulated lender, will lend the money.
“Access to capital is a major pain point for our members and the small-business Main Street community,” said Vice President of Sam’s Club, Catherine Corley, reports North Jersey. “This pilot program is a step in the right direction to help fuel small-business growth and create jobs to stimulate our economy.”
Members of Sam’s Club who apply for a small business loan will receive $100 off the application, a 20 percent discount and a discount on the interest rates, reports Kam City. This latest scheme will be marketed towards minorities, females and veteran-owned establishments.
In 2005, according to Business Week, Wal-Mart attempted twice to purchase a financial institution but was halted by legislators, however, that hasn’t discouraged them from still getting their foot into the finance sector.
Wal-Mart announced in January 2005 that they would be offering a Wal-Mart Discover credit card that offers 1 percent cash back. The initiative was also in collaboration with GE Consumer Finance.
Two years later, the company launched a prepaid debit card, reports the Consumerist. Every time you cash your check at a Wal-Mart location, their employees would ask if you would like to load your check onto their debit card, which costs $3.00.
In March, Wal-Mart announced it was going to add another 400 MoneyCenters in the United States by the end of the year. There are approximately 1,000 MoneyCenters already in the country.