Understanding a Merchant Account Personal Guarantee

Apr 07, 2020

Do you feel confused about signing a personal guarantee with a merchant services provider? What about high risk merchant accounts? Where can you get reliable merchant processing services or business funding for your risky business to overcome financial challenges? No worries. This article will explain what a personal guarantee is and help you come up with the right merchant services for your business.

Turning to a Processor: High Risk Merchant Accounts

This of a personal guarantee as an agreement stating you’ll compensate the loan provider or cover any unpaid merchant account fees even if you’re unable to make the loan repayment or your unpaid financial obligations.

Choosing the right processor or business funding provider for your own specific business needs is of immense importance. So, you should take the time to shop around to find the most suitable merchant services provider for your company. Consider applying with eMerchantBroker.com.

EMB is a reputable merchant processing company and alternative online lender specializing in the high risk space. The hard work EMB does for its merchants has resulted in an A+ Rating with the Better Business Bureau (BBB). EMB guarantees fast and hassle-free approval for high risk merchant accounts with the cheapest possible rates in the industry.

What to Expect From a Personal Guarantee Agreement

Merchant services providers require business owners to sign this type of agreement as they want to have a legal promise that you’ll bear personal responsibility for making all the necessary payments. So, it’s like an added insurance.

So, when applying to a payment processor or merchant loan provider, some of them will require you to not only submit banking statements, tax returns but also sign the above-mentioned agreement stating you’ll pay back your debt. This is a kind of proof the merchant services provider wants to have as a safe investment.

Be aware that such a guarantee on your credit card is valid no matter what structure your business has, meaning it legally protects you against personal liability for business debt or not.

As you see, by signing a personal guarantee agreement with your processor, you ensure it you’ll make the repayment every month. This type of agreement lets your processor deduct the fees on a monthly basis.

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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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