We are a start-up and one of our potential client asks us to white-label our service for him to sell it to his own clients. Our company name will be written in small on the service we'll provide to him.
These types of distribution deals can be great for your business. Just make sure that both sides understand what is being agreed to as far as the execution. I have had some bad experiences with feature creep when working on white label partnerships like this. That is, we thought we were delivering a white label version of our existing solution as is and the partner thought that they were getting unlimited customization.