>> The client's exact words were: "I want visitors to fill out a form and
>> submit it and get approved for a line of credit they can use to pay for
>> services on my site."

The first way I read that line, is this is a company that already deals 
with credit lines.  If so, my first question would be "How do you do 
this currently."  I.E. what is their process when a customer walks into 
their establishment and wants to open a line of credit.

If they do do this, then start there and discuss how the on-line version 
could mesh with the current manual process.

If they do not do this, then much work and risk is ahead for you and them.

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