Does your business have poor credit? Do you work in an industry that is considered high risk? Whatever the reason is, you’ll be obliged to secure a high-risk merchant account for payment processing. How can you start accepting credit cards for your business if you have bad credit?This article will discuss 3 ways you can open a merchant account withpoor credit.
Merchant Account Bad Credit
Credit reports reveal details concerning past borrowing and repayments, building a credit score based on various factors such as past levels of debt and late or missed repayments.The acquiring bank runs a credit check, and if your business turns out to have poor credit ratings, it’ll be viewed as a risk to financial service providers.
Be aware that businesses in East London are well known for having the poorest credit scores in the country because of the area’s rampant startup culture. The “E” postcode area in East London is known as the worst postcode area in the country regarding average credit scores. Experian reports that businesses with an “E” postcode have an average Delphi credit score of 39.5.
DP-Delphi Score (0-100) is a credit bureau score which was developed in partnership with Experian, the world’s largest credit bureau operator and one of the 3 credit bureaus in the USA and UK.
How Can You Start a Business with Poor Credit?
No one argues that bad credit will make it challenging for business owners to secure a merchant account. The good news is that it’s just challenging but not impossible. What can you, as a bad credit merchant, do?
- Turn to a Reputable Alternative Online Lender
There are respectable payment processors that specialize in the high-risk sector, and offer the lowest possible rates and the best terms for merchants in the field. You just need to turn to a payment expert for a secure trading review so to be able to get the best deal.
A true professional will review contracts, rates, and fees to ensure you’re getting the best for your business wants and needs. Integration requirements can be just as important as fees and customer service, so make sure the payment expert you’re working with checks every provider’s integration process so to ensure a smooth transition and onboarding process.
- Prepare a Solid Business Plan
A well-thought business plan is highly important in this regard. Merchant account providers will want to see you’re working to fix your credit. Show you’re determined to set your finances in order.
- Take Stepsto Improve Your Credit
Your credit score is the reflection of your credit payment patterns over time, with more emphasis on recent information. To improve your credit score, you should take some measures such as pay your bills on time, keep balances low on credit cards, pay off your debt, and more.
Even if you’re classified as a high-risk business, this doesn’t mean the end of the world. Bad credit can’t keep you from starting a business. Just take the right steps and focus on providing a bright future for your business.
Author Bio: Electronic payments expert Taylor Cole is a passionate entrepreneur who enjoys to write, produce music, and travel. Bestpaymentproviders is the UK’s mostsecure trading review company, serving both traditional and high-risk merchants.