Even though merchant accounts have become an essential part of doing business, they can be difficult to obtain if you don't have the right strategies. Merchants who are new to the industry or who have had trouble with their businesses in the past can face an uphill battle when trying to get a merchant account. However, there are ways to increase your chances of success and prove that you're a good risk—even if you've had problems with credit in the past or run a high-risk business.
Provide a history of good credit, along with proof that you have been making your payments on time for at least two years.
Provide a history of good credit, along with proof that you have been making your payments on time for at least two years.
This is one of the most effective ways to demonstrate your ability to manage a High Risk Merchant Accounts merchantaccountproviders.com successfully. You can provide this information by providing copies of your personal credit report and any other documents related to your financial history (such as tax returns or bank statements).
Have an up-to-date business license.
A business license is a requirement for most merchant accounts. If you don't have one, you can get one from your local city or county. A business license proves that you are a legitimate business and helps to protect your assets in case of fraud or theft by an employee.
Get a copy of your credit report and make sure there are no errors or derogatory marks on it.
To help you keep an eye on your credit report, we recommend using a credit monitoring service. This will allow you to see what's happening in your credit score and address any issues that pop up.
You'll want to make sure there are no errors or derogatory marks on it before applying for a high-risk merchant account. If so, dispute them immediately!
Get an attorney to write a personal guarantee letter.
Your attorney should write a personal guarantee letter on his or her letterhead. The letter should state that you are personally responsible for all debts incurred by your business and it should be signed by both you and your attorney. It's also important that you send this document to the merchant account provider before submitting a funding application.
Use a business address that is not your home address.
As a high-risk merchant, you must use a business address that is not your home address. This means you should not provide any of the following addresses:
- Your own home or apartment building (even if it has an office in it)
- Your parents' home or apartment building (even if they have an office in it)
- A friend's parent's house or apartment building (even if they have an office in their basement).
Use only one bank account to pay all your bills and never use a personal credit card for anything other than gasoline purchases and ATM withdrawals.
Use only one bank account to pay all your bills and never use a personal credit card for anything other than gasoline purchases and ATM withdrawals. You can get a merchant account if you have the right strategies in place.
You can be approved for merchant accounts if you have the right strategies
- Have an attorney write a personal guarantee letter.
- Get an attorney to review your application.
- Use only one bank account to pay all your bills, including the merchant account fee.
- Use a business address that is not your home address (or use a PO box).
Conclusion
If you have been denied a merchant account, don't give up! There are plenty of other options out there and we can help you find them. If you are looking for more information or would like us to review your application please contact us at +1 8008348767 or email us at info@yourmerchantservicesrep.com
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