Bad Credit Start-Ups

Aug 12, 2014

Setting up a business is a positive step in the right direction, but if you have a bad credit history yourself, this can cause problems if you are looking for outside investment.

While most start-ups involve putting some of the capital to start the business from your own investments and savings, if you don’t have these and you still want to start your own business, how you have dealt with your own personal finances will impact how they judge you as a potential business owner.

Even trying to access a merchant account is difficult; looking for the right merchant account provider is your best option; one that deals in high-risk and bad credit merchant account providers is your best option. You will pay higher fees for the facilities but you are more likely to get an acceptance rather than dealing with a refusal of an account.

There are options open to businesses who are trying to secure funding, if a merchant account is in place it is possible to get an advance in expected payments. This allows for a company to grow and expand with payment based on the current sales; normally an agreed percentage goes to the payment for the loan and the remainder back to the company.

There are sites on the internet where you are able to secure funding from individuals who are looking to lend to businesses. It is possible that these business loans are at a lower interest rate than banks or other lending opportunities. For the individuals that invest in this form of lending, the return for them is often greater than interest payments if invested in a bank.

A series of non-profit organizations also exist that do lend to businesses who are struggling in obtaining credit and there are some government grants available, but that will depend on your current location and to the facilities that your local government is offering.

The final option that you should consider if you are looking for capital or investment in a new business venture, is to sort out your own personal finances first. This will open up more avenues in the business world because your personal financial record plays an important part in start-up business loans.

Do you have bad credit? Need a bad credit merchant account? Contact us today to set one up in as little as 48 hours!


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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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