Private Label CreditShould you offer credit cards to your customers?

MasterCard, Visa and American Express all have their place. Butthere's another option you may not have considered: issuing aprivate-label credit card with your company's name on it. Inaddition to all the usual advantages of credit cards, aprivate-label credit card program allows businesses to focus on whotheir customers are. For example, your program can gather dataabout customer purchases, buying patterns, income anddemographics.

Small businesses can save money and eliminate hassles by usingan outside administrator that specializes in private-label creditcards. A number of banks have entered this arena; ask your bankerif he or she administers such programs. If not, the banker may beable to recommend a private-label credit card administrationcompany.

Excerpted fromStart Your Own Business: The Only Start-Up BookYou'll Ever Need