How to get a merchant account with bad credit
Looking for a merchant account and your credit is less than perfect? The good news is that you have options. Having a low credit score does not automatically exclude you from opening a merchant account. Here is a list of items that can over shadow your credit score.
- Merchant Account Type
- History of the Business
- Business Financials
- Cash Reserves
Merchant Account Type.
The type of merchant account you are looking to open will place emphasis on your credit score. If you are looking to open a retail (brick and mortar) store your credit score won’t be scrutinized near as much as if you are looking to open an internet merchant account or MOTO merchant account.
History of the Business
The longer you have been in business the better. The idea here is that if you have decent business history you are giving the underwriter something else to examine other than personal credit. If the business is brand new you are forcing the analysis for approval to be centered around your personal credit as there will be nothing else to look at.
Similar to the history of the business, business financials give the underwriting department another peak into how your finances are being managed. If your credit score is low but you have strong financials associated with the business you are looking to set up. The chances are good that you will get your merchant account approved.
Another item that can offset a low credit score is a large cash reserve. It is best to have a least double the amount you are looking to be approved for as cash on hand. For example, if you are looking to get a merchant account approved with a monthly volume amount of $20,000, it is a good idea to have at least $40,000 as a revolving balance in your personal or business account.
If you would like help with other ideas on how to get a merchant account approved with low credit please don’t hesitate to call our expert payment processing staff at (800)917-8026.