Poor Credit Rating Doesn’t Not Mean “No Credit Available”
Credit to Use creadit!
Businesses are assigned credit scores in much the same way as are individuals. Therefore, certain circumstances are likely to affect how strong or weak the credit score is of a business. A slow economy easily translates to low profits which makes it difficult to pay creditors on time, increase profits to maintain a desirable debt-income ratio and invest in upgrades. Understandably, these factors can lead to what is considered a bad credit score.
A poor credit score can make it difficult for businesses to do business! Customers switching their preferred method of payment from cash or check to credit and debit cards has occurred in tandem as the prevalence of online retail has increased. Because so many customers prefer using plastic, businesses must have the gateway to enable the transactions.
Merchant accounts are set up so a business can accept credit cards. They work by placing a “hold” on funds waiting for clearance. Once a customer swipes his card for payment, the gateway verifies the funds are available and puts a hold on the funds from the bank or financial institution issuing the card. The merchant account then transfers the funds to the retail owner’s account. Businesses need a steady supply of funds, which is why they rely on merchant accounts.
Getting a merchant account with bad credit approved from a traditional bank may be difficult. However, a poor credit rating isn’t all that some institutions look at when making a determination because the reasons behind the rating often tell a different story. Reputable financial institutions that specialize in helping business owners obtain merchant accounts, such as The High Risk Guys are dedicated to the success of each one they cover.
By obtaining a high risk merchant account you will not have to put your business goals on hold. You will be able to continue- or begin- to accept credit cards from your customers. When choosing a high risk merchant account provider be sure to examine their policies and customer service. You deserve a provider that supplies secure point of sale equipment for you and your customers’ peace of mind! You also want a provider that listens to you and is willing to reach an agreement based on your individual business requirements.