Do you have a profitable credit card portfolio? Are you headed toward retirement or looking simply for capital? Selling all or part of your credit card portfolio might just be the answer for you.
With credit card companies facing fierce competition for customers and pressure to grow revenue, you are constantly hearing about larger processors buying credit card portfolios or companies. Mergers, acquisitions, and selling of portfolios doesn’t need be a strategy for just the big name, large players. ISOs like CLARUS Merchant Services are also actively involved in the purchasing of portfolios. The difference is they focus on your world, not the multi-billion dollar deals you see in the headlines today. Whether you are an Agent, an ISO, Community Bank, Association, etc., selling your portfolio for a substantial return is not only realistic, it’s never been easier. ISOs like CLARUS offer you multiple purchase options that help you achieve your financial goals and fit your lifestyle. Selling your portfolio doesn’t mean you have to leave the industry. In most cases the seller continues to sell for the acquiring ISO or through their existing relationships. Selling your portfolio or part of your portfolio allows you to continue building additional revenue streams through your already successful sales channels. For many this becomes a healthy lifestyle play and sound business strategy.
Reasons to Sell Your Credit Card Portfolio
Along with the financial benefit and freeing up capital for you to make other investments, selling your credit card portfolio can also free up time. Managing a credit card portfolio can be time-consuming and complex if you are doing it in-house. From minimizing risks to letting you focus on expanding another area of your business, selling your credit card portfolio might be a smart move.
The Downside Of Selling Your Credit Card Portfolio
On the other hand, there might be some negatives to selling all or part of your credit card division. One big reason is the relationship you have with your customers. Having a book of business provides you with the opportunity to cross-sell other services and products. If you sell your credit card portfolio, will you keep their trust and loyalty?
Factors in Selling Your Credit Card Portfolio
When it comes to the decision of the acquirer of your portfolio, you might want to consider more than just the bottom line. If you hope to keep these customers in other aspects of your business, it’s good practice to sell to someone you are confident will satisfy your customers.
Selling Just a Portion of Your Credit Card Portfolio
Not looking to get out of the credit card business entirely? You might want to sell a portion of your portfolio, or sell, then keep doing what built your foundation and reputation. Lather, Rinse, Repeat.
If you decide to sell, you can market the business yourself or use a brokerage firm. A brokerage firm will help you determine a price, assist with negotiations and help administer contracts and agreements. Nonetheless, be sure to find out who the broker is working for. Do they represent you or the buyer? Lastly, what are their fees and how will they get paid.