To Invest or Not to Invest in the Firearm Industry

Mar 28, 2016

Gun sales are higher than they have ever been in recent history. If you are an entrepreneur, you may think that guns are a great investment. However, the gun industry is extremely volatile and investors must follow trends closely to have a shot at getting a profit. Investors with good timing could make a great deal of money by selling and trading guns, but guns may not be a long-term buy-and-hold investment.

Colt, one of the biggest players in the U.S. gun industry, recently filed for bankruptcy. This has left potential investors leery of the industry. Unlike most products, guns are not as affected by normal economic cycles; instead public opinion and politics can drastically affect gun sales.

For example, panic has been a powerful driver of gun sales in the past. After the tragedy at Sandy Hook Elementary School, gun sales shot through the roof as gun owners feared the arrival of stringent gun legislation. The threat of terrorist attacks and events occurring in the Middle East, have also caused a surge in gun purchases as some feel the need to protect themselves. On the flip side, mass shootings can also motivate gun legislation on a local level that can put additional restrictions on gun sales that can affect the profits of investors.

So what is an investor to do? Before jumping on the gun train, understand that the gun industry is extremely volatile and is all about timing. Investors must follow political and social events to know the right time to buy and sell. Investing right after a public threat could be a good idea as many people will want to arm themselves. But trying to invest in the gun industry as a long-term hold could be dicey.

EMB is the leading online firearm merchant account provider that will expand your online firearm business. We have professional advisers that are the most qualified in offering your customers the absolute best services, and accelerate your profits with flexible payment options like debit and credit card processing. Contact us today to start your low hassle account.

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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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