retail revolving credit plans managed for a retailer, independent dealer, or manufacturer by a bank or commercial finance company. Major department and specialty stores also manage their own private label credit programs. If managed by a firm other than the retailer, the servicing company issues the cards, funds the credit receivables, and collects the payments from cardholders. Credit criteria are set by agreement between the retailer and the third party servicing firm. By having a private label credit program, a retailer is able to offer his customers extended payment terms, thereby increasing his sales and accounts receivable turnover. Private label credit plans also build customer loyalty, because retailers are able to send marketing promotions to preferred customers.