Could Debt Hurt Your Business This Year

Mar 25, 2016

Bankruptcies, defaults, and poor credit can cripple business owners. Poor credit and other issues have made securing small loans difficult for small businesses. In fact, only 27 percent of the 63 percent of small businesses that apply for loans actually get them. Will the black marks on your credit keep your business in neutral? Here’s what you should know.

Personal vs. Business Credit Scores

Personal and business credit scores are separate but linked. Personal scores range from 300 to 850. Business scores range from 0 to 100. Personal credit scores can be attained freely every couple months, but business scores must be paid for. Both personal and business credit scores track and record payments, any outstanding debt, tax liens, bankruptcy filings, or judgments. Unfortunately, lenders will look at both to determine if your business is worth the risk.

What Happens if My Credit Is Bad?

The hard truth is that bad credit can keep you from obtaining a small business loan from a traditional lender. Luckily, there are a variety of alternative business funding options that help merchants with bad credit attain loans.

Merchant Cash Advance. If you have a credit card, you could be eligible for a merchant cash advance. In this arrangement, merchants can get quick funds upfront and lenders receive a percentage of customer credit card sales.

Micro Lenders. This is a great option for merchants that won’t be approved by banks or don’t have weeks to wait for approval. Micro lenders will give businesses with low credit scores small ($3,000) to medium ($35,000) sized loans. Plus most micro lenders offer fast approval times.

Social Lenders. Kickstarter and other social lending websites have become a simple and effective way to generate capital. Entrepreneurs can reach out directly to their friends, investors and family for funds.

eMerchantBroker.com specializes in setting up bad credit merchant accounts. We have a streamlined application process that is user friendly. Our applicants don’t worry about VISA and MasterCard requirements or application fees. EMB bad credit merchant accounts enjoy competitive rates and 24/7 support.

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 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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