Bad Credit’s Impact on Merchant Account Costs

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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.

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James is a financial expert who has contributed several business and finance related articles. His expertise and first-hand knowledge of economics makes his blogs and articles informative and helpful for those looking out for guidance and assistance in matters related to finance. He has an active schedule of TV and radio interviews He is co-host of the popular VT Radio show Jim and Gordie Show. latest-articles-buttonJim comes from an old military family dating back to the American Revolution. Dozens of Confederate ancestors fought for the South in the War Between the States. Uncles fought in WWII and Korea. His father was a WWII P-40 and later P-51 Mustang fighter pilot. Vietnam found several uncles serving, a cousin, and brother Wendell as a young Ranger officer. His mother was a WWII widow at 16, her first husband killed with all 580 aboard when the SS Paul Hamilton, an ammunition ship with 7000 tons of explosives aboard, was torpedoed off the coast of Algiers. He has been writing, speaking and doing public relations, television, consulting and now multimedia work for a variety of American heritage, historical, military, veterans and Intel platforms. Jim’s only film appearance was in the PBS Looking for Lincoln documentary with Prof. Henry Lewis Gates, and he has guest lectured at the Army Command and General Staff School at Fort Gordon. Currently he is working to take his extensive historical video archives on line to assist his affiliated organizations with their website multimedia efforts, such as the Military Order of World Wars, Atlanta, Sons of the American Revolution, Sons of Confederate Veterans , Assoc. for Intelligence Officers, the Navy League, Georgia Heritage Council, National Memorial Assoc.of Georgia.

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