Three Tips for Merchants with Bad Credit
During the COVID-19 quarantine, many businesses are struggling. The lack of face-to-face transactions is wreaking havoc on their normal consumer base, preventing them from making the sales they are used to. Adaptation is necessary right now and making an online merchant account is the next step to taking your business into the 2020s, and surviving the lockdown.
On the other hand, there are some problems that business owners may run into when they try to open a merchant account with bad credit. Since an online merchant account is essential for practically any business, It’s important to know how to open a merchant account with bad credit and how to get the lowest rates. These 3 tips can help to keep your business afloat during these trying times.
Shop around
When you try to open a merchant account with bad credit, you may run into merchant account providers that consider you to be high-risk and may decline your application or raise your rates. Since the clock is ticking on using your online merchant account to give your customers an online outlet to buy your product and services, the time is now to start shopping around to find a merchant account provider who will work with you, and this process may require more time or more flexibility than if you had good credit.
Know your history
Several aspects of your financial history could impact discount rates for an online merchant account. For example, a bankruptcy within the last ten years can have an effect on the discount rates of your online merchant account. But you may be able to qualify for lower rates in spite of a prior bankruptcy if you are able to commit to a higher processing volume.
Be proactive
Before you try to open a merchant account with bad credit, your bank may be able to help you pay off and/or consolidate your loans, which can improve your credit. Talk to your bank to find out if this is an option that will work for you.
The Takeaway
Online merchant accounts are necessary during the COVID-19 quarantine. It is now extremely difficult for any business to survive without a digital store component; however, it can be difficult to open a merchant account with bad credit.
Use these three tips to try and improve your situation, increase your knowledge, and consolidate your finances so you can get an online merchant account for your business as quickly and cheaply as possible.
Contact Charge.com at (888) 924-2743 to learn your options, even if you have bad credit.