The Credit Service Organization (CSO) Model is an alternative short term consumer lending solution. In the CSO Model, two separate parties assist in facilitating a short term loan to a consumer. This process involves a CSO (Credit Service Organization) and a lender. The CSO grants a CSO Agreement or guarantee to a lender on behalf of a consumer and their perceived ability to pay on a short-term loan. The CSO charges an application fee similar to that of payday lenders. The lender, a separate entity, actually makes the loan with the consumer including executing contracts and funding.

CSO (typically a storefront) responsibilities:

•	Providing the CSO Agreement based on review of credit
•	Making underwriting decision on guarantee to lender
•	Paying the lender in the case of consumer default (principal, lender interest fee & NSF fee)
•	Contracting with TDC (who sets up CSO and lender loan documents in LMS)

Lender responsibilities:

•	Funding of the short term loan
•	Creating loan documents
•	Obtaining business license