What White-Label Financial Products Can Do For Your Business


White-Label financing, credit cards, and payment portals have the potential to increase repeat business and customer loyalty and promote your brand. This article will explain how they work and what they can do for your business, from the office of a noted Philadelphia bankruptcy lawyer.

What Does “White-Label” Mean?

“White-Label” is the phrase used to refer to something that is branded with your business name and logo and looks as if it comes from you but is manufactured or backed by another business entity. “White-label” and “private label” are used interchangeably.

You may be familiar with promotional products carrying business logos, but not only products can be white-labeled. Services and financing are offered as white-label as well.

The primary benefit of working with another company that provides white-label services or products is that you can access a product or service you want or need but do not have the personnel or other resources to create or provide for yourself.

What is White-Label Financing?

White-label financing was the first of the three white-label financial products discussed in this article and paved the way for the other two – white-label credit cards and payment processing portals.

The most common example is automobile financing, which is branded with the auto manufacturer’s name and logo but is backed by another lending institution. Each dealership has personnel trained in operating the online portal, through which they can check a customer’s credit, make a loan offer, and close the loan then and there.

Offering in-house financing streamlines the purchasing process for the customer, but customer convenience is not the only benefit. The ability to offer loan terms on the spot converts more shoppers to buyers.

Retailers offering luxury goods such as jewelry, fur coats, and wedding dresses now offer their own branded financing, as do travel companies and cruise ship lines.

What is a White-Label Credit Card?

A white label credit card is branded with your company name and logo and works just like any credit card from a major lending institution. The difference is, you get to offer discounts, a loyalty-reward program, or other customer perks to incentivize repeat and ongoing business. 

If a customer maintains a revolving balance subject to interest, you may benefit financially from that depending upon your contract with the backing lending institution. A customer carrying your white-label credit card can use it anywhere, and you may benefit financially from that as well.

Having a white-label credit card boosts your credibility in the market. Let’s say you have a roofing company, and there are two businesses offering the roofing supplies you need at the same prices, and they are the same distance away. One of them offers a credit card and customer loyalty reward program for using it. Wouldn’t you be impressed by that and incentivized to patronize that store?

In sum, a white-label credit card:

  • Encourages repeat business;
  • Builds customer loyalty;
  • Increases brand credibility;
  • May make you money on interest on customers’ revolving debt.

What is a White-Label Payment Processing Portal?

A white-label online payment portal is linked to your company’s website and takes customers directly to a branded payment page that offers the option of creating an account with you. The ease of use converts more viewers to buyers, and more importantly, you collect information about the people who visit your website and purchase something.

The payment processing portal gives you the ability to store customer contact and payment information. You can incentivize customers to create an account on your site to make future purchases easier and to take advantage of your loyalty reward program and exclusive discounts and sales. This all drives repeat business.

Are There Detriments to White-Label Financial Products?

There can be. When you research white-label financial products with different financial institutions, keep the following two things in mind:

Not Every Financial Institution Offers Mobile Payment Options

Be sure to find out if the white-label financial programs you are considering are compatible with mobile payments such as Google Pay, Apple Pay, and Samsung Pay. Paperless payment is the wave of the future, and you don’t want to sign up for something that soon becomes outdated and difficult for your customers to use. 

White-Label Financing Agreements Vary in Cost and Benefits

Research carefully. Every financial institution offering white-label financial products differs. Small business owners should especially be cautious because if a particular program requires personnel, training, time, or other resources you do not have, the program could hurt you rather than help you.

How Do I Know Whether a White-Label Financial Product is Right for Me?

Your answers to the following questions will tell you whether your business would benefit from enrolling in a white-label financial program:

  • Would the ease of procuring immediate in-house financing something that would incentivize browsers to become purchasers?
  • Would my current customers be interested in white-label financing or a credit card? 
  • Would the availability of financing attract new customers?
  • Is a loyalty rewards program appropriate for my type of business? Are discounts for card users useful for my business?
  • Will a white-label credit card or financing help me differentiate from my competition?
  • Does my business have the resources to administer a white-label financing program?

If you decide to partner with a financing company and implement a white-label financial program, find out:

  • What would have to change in order to work with this company?
  • How much their white-label financing solution costs upfront?
  • How much their white-label financing cost monthly, quarterly, and yearly?
  • What resources are required from me to administer this financing program?
  • Does the financing company offer training in the virtual interface?
  • Does the financing company offer installation support, and does it cost anything extra?
  • Does the financing company provide ongoing support, and does it cost anything extra?

If possible, talk to other business owners who have used the white-label financial products you are considering so that you know before committing what financial cost, as well as time and resources, are required to implement a white-label financial program.

About the Author

Veronica Baxter is a legal assistant and blogger living and working in the great city of Philadelphia. She frequently works with David Offen, Esq., a busy Philadelphia bankruptcy attorney.

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