5 Ways to Stop Bad Credit from Killing Your Small Business Dream

Aug 06, 2015

You’re ready to take off. Your cards are decked and you feel that you’re ready to launch your small business. However, you have one hurdle remaining on your way – and it’s a big one. You need some capital!

Regrettably, you can’t get the money you need from your local bank because your credit score is not so good. Maybe you made a few wrong decisions in the past. But the banks won’t listen to your pitch. They say you’re too risky and politely ask you to seek help elsewhere.

Does it now mean that you’re forever doomed to suffer and the only option is to let go of your viable business idea? Probably not! You’ll be glad to learn a good many options to consider in this copy.

Let’s explore the five small business funding solutions you may want to try out.

1.      Crowdfunding

If you have a group of loyal followers or if you think your proposal can elicit mass appeal, you can try crowdfunding. Places such as GoFundMe.com, Fundable.com, and Kicktarter.com are meant to help people with brilliant investment ideas find funds for their projects. Some projects have been able to raise millions of dollars within only a few weeks. Take the chance and grab the opportunity now!

2.      Friends and Family

This is another excellent source of funds for a startup. People who love you will stop at nothing to help you become successful. Speak up about your idea and most of them will happy to help from the heart. Just make sure that everyone understands the terms of contributions to avoid future conflict.

3.      Microlenders

Microlenders are typically not-for-profit organizations that provide small loans in the region of $300 to $35,000 to rising entrepreneurs. They specialize in lending to small, local businesses and the qualification criteria are a bit relaxed compared to those of traditional banks. Examples include Zopa and Accion.

4.      Local credit unions

Although getting credit from local banks can be difficult, the same cannot be said about credit unions. These unions exist to help their members. If the bank doesn’t listen to you, try approaching your union; they may be willing to take a risk on you.

5.      SBA loans

You could also get a loan from the U.S. Small Business Administration (SBA). The SBA has several loan programs for entrepreneurs. You only need to check the available options to see which loans you qualify for.

If none of these options works for you; just hang in there, build your credit core and try again later. In the meantime, open a bad credit merchant account to avoid future troubles and be able to process your clients credit cards.

Let us help you get a high risk merchant account today!

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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