Starting a Business while also Dealing with Bad Credit

Apr 13, 2015

Starting a business brings with it a large list of obstacles to overcome. If your personal credit history is not pristine, it can make the task even more difficult. However, it is not impossible. There are options out there that will help you to obtain the funds you need in order to be financially prepared to start your business.

Capital. Entrepreneurs usually have some types of capital at their disposal that they can put into their business: personal savings, retirement accounts and/or loans from family and friends. Even with all of this, it is sometimes not enough to cover the funding necessary to launch your business.

Social lending sites. When bad credit is an issue, there are other routes you can take to receive funding for your startup. Many have turned to the numerous social lending sites available on the Internet. Social lending sites allow its members to borrow and lend to one another. Obtaining these sources of funds are easier since you can explain your situation directly to the funding party. The rates of these types of loans also tend to be much lower than the ones you can receive from a traditional lending source. The major advantage is that the funds you obtain from social lending sites can be used for any purpose; such as, starting and running your business.

Micro-credit organizations. These types of organizations’ sole purpose is to help new and growing businesses obtain capital after they have been turned down by traditional lenders. Typically non-profit groups, these organizations understand the trials that business owners face.

According to businessknowhow.com writer, Joseph Lizio, “They work with new start-ups and are extremely flexible in developing programs that can meet these businesses specific needs and while these loans and leases are secured by collateral (the equipment) there is less emphasis put on personal credit histories.”

Factoring a business’ receivables. Factoring a business’ receivables is also a form of capital resources. Instead of waiting 30, 60, or 90 days to get paid by your customers, you can purchase order financing. Doing so means that your business can receive cash to complete jobs that have already begun. Or, you will have the funds to bid on jobs that you might not otherwise have the working capital to obtain.

Bad Credit Merchant Account. Increasing in popularity among startups, a bad credit merchant account can offer you fast solutions to your funding needs while also working with your credit situation. For example, emerchantbroker.com can help you regardless of your FICO score, previous processing history or even bankruptcy and tax liens. They can even assist merchants that have been placed on the TMF or “black” list for Visa and MasterCard accepting merchants.

While traditional lenders may be tossing your needs to the side in the “undesirable” pile, don’t despair. The options above should help to fill the lending gap that is preventing you from your startup goals. Believe it or not, despite past credit mistakes, there are desirable options out there that can be the answer to your funding needs.

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

Get Started

Award winning.

  • 2012
  • 2013
  • 2014
  • 2015
  • 2016

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.

Live Chat