Avoid Default with EMB Small Business Funding

May 18, 2016

Whether it’s due to the economy, miscalculations, sudden hardships, or a variety of other issues, some businesses find themselves struggling to repay debts. The prospect of defaulting on your business loan can be terrifying, but there is hope. Check out a few of these strategies that you can try to save the business you’ve worked so hard to build.

What is Loan Default?

Loan default occurs if your business has surpassed the delinquency status. This means you’ve been unable to pay your loan for a significant amount of time, and the lender assumes you will not repay the loan. At this point, the lender will begin to take steps to get their money back.

What Can I Do?

Talk to your lender

The first step is to talk to your lender. Explain the situation. If it’s truly a temporary setback, the lender may give you an extended grace period (although it may come at a fee). They may even provide temporary reduced payments. But remember, if you don’t communicate the lending company can’t help you.


There are a number of organizations that provide refinancing services. These companies usually offer longer loan terms with small bi-weekly or monthly payments, terms that are much simpler for companies to handle.

Prioritize your debts

Businesses have a ton of money coming in and out. But some debts are more pressing than others. Take the time to prioritize your debts and see which ones will impact your business the most. Target these debts first.

Cut costs

Maybe you are trying to expand too fast. Perhaps you’ve invested in equipment or staff that is not necessary at this point in the business. If this is the case, cut them. No one likes layoffs, but in times of crisis it may be necessary to save the business. Go through your monthly expenses and find other areas to cut costs like utilities or complementary services.

Cash Advance Programs

Don’t be in danger of default. Some online lenders like EMB, provide cash advance programs that specialize in business funding. Small businesses can apply for quick cash advances that will infuse your company with cash to help pay bills. If you need a cash advance to avoid default, we have got you covered. The application process is simple and most merchants receive working capital in as little as 5-7 days. Contact us to learn more about fast, low hassle lending 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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