What is the scope of a bad credit score’s impact on your business? It can be hard to measure. The negative effects can permeate your business but finding a way to estimate the damage to your bottom line is tricky. Here is a look at the scope of bad credit and how it impacts your costs. If you’re suffering from bad credit, the best option to help get your head above water is to find a bad credit merchant.
How Bad Credit Hurts
Bad credit can hurt you at the get-go by limiting the options and rates you have available when applying for financial services. Standard merchant services providers are unlikely to want to do business with you if you have lingering bad credit. Even specialized services sometimes won’t offer competitive rates or will saddle you with additional fees. Higher rates, large deposits, and expensive premiums can sink you before you even get out to water.
Just the application process itself can become exponentially more complicated. The time and effort lost during the application process is detrimental to your business. The application fees that may come along with that time and effort are outright harmful. Beware of application fees as they can be a simple trap for your business during it’s hard times.
Finding a Ladder Out of Bad Credit
Finding a credit card processor that will approve you for a bad credit merchant account is a major hurdle leaped, but it’s not the whole battle. You need to find a provider that will help you climb out, not just provide a merchant account. In order for your business to grow in the future you need to commit to helping yourself in the present and eliminate fear over past bad credit, and this is also true of your merchant services provider. They should be your partner in the path to recovery.
By rebuilding your revenue you can begin tackling your bad credit through making on-time, regular payments. The interest rates on your business’ credit cards will slowly reduce, meaning the money you lose over time will fall dramatically, allowing you to improve other areas of your business. The size of required deposits will decrease and other options will be available such as taking out a mortgage on you retail site instead of leasing. The same way bad credit trickles down into your business, repairing bad credit will have the reverse effect gradually improving your business. The key is to turn things around now.
Bad Credit is bad for business but it’s not a death blow. You can successfully recover your credit score and begin building your business back up. Find an experienced team and let them do what they do best and find you a bad credit merchant account that will put you on the path to recovery.
About The Author:
Blair Thomas is the co-founder of eMerchantBroker.com the #1 High Risk Merchant Account company in the US. He has been in the electronic payments industry for over 10+ years. When he is not running his business he spends his time writing and producing music, which has been featured in a variety of films.