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.