Small Business, Bad Credit, What Are Your Options?

Dec 08, 2016

Most people are familiar with credit scores, and why they’re important. One aspect that’s often overlooked, however, is how critical they are for the small business in need of a loan. Very few startups are lucky enough to be able to thrive and grow off a little investment from a venture firm or equity investor. The majority must rely on debt to expand or to fund their working capital.

While it’s true that lenders weigh credit scores differently, every one of them – including alternative lenders – will consider your credit score for evaluation purposes. Depending on the lender, your credit score could be the primary reason you were turned down. Small business owners, unlike large corporations, are also evaluated on their years in business, annual revenues and collateral.

And what about the business owner already struggling with bad credit? After all, not every business venture is successful. The bad credit it leaves you with can drastically affect your future endeavors. Trying to launch a startup with bad credit can feel next to impossible.

Bad Credit Merchant Account

With so many variables out of your control, business ventures don’t always work out. If you have lingering bad credit from a prior venture or you’ve filed for bankruptcy, there are still options available to you. The source just may not be what you initially expected.

Banks will turn you away, it’s true. But a high-risk specialist – like eMerchantBroker – has years of experience in working with merchants that are struggling with bad credit. Their services are specifically tailored to meet your needs. They are willing to help you, regardless of your FICO score, tax liens, bankruptcies or previous processing history. You can even receive help in being removed from the TMF list, the “black list” for Visa and MasterCard accepting merchants.

In fact, a bad credit merchant account or a business cash advance with EMB allows merchants to actually build their personal and business credit. You can be approved for a bad credit merchant account in as little as 24 hours. The application process is known for being simple, fast and hassle-free.

Another great benefit is the team of experienced staff that are there to help you with the ins-and-outs of your business type. Merchants can take advantage of a large network of agents, support staff and EMB’s strategic partnerships. The wide range of merchant services includes not only a merchant account, but also chargeback prevention programs, iCheck (EMB’s immediate payments from check-based transactions) and business funding options.

Don’t let the past hold you back from future business endeavors. For more information on how a bad credit merchant account can help you get back on your feet, contact our team today.

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.