More and more entrepreneurs are turning to alternative lenders like First American Merchant for their payment processing needs. Why? Industries like automotive are considered to be high risk by banks and other traditional providers.
At first glance, running an auto shop seems to be straightforward. However, the day-to-day operations of an auto shop are incredibly diverse. Large average ticket sizes for repairs and parts are typical for this industry. Unfortunately, this also leads to fund holds or overwhelming chargeback rates. As a result, banks consider these businesses too risky and turn them away. Without a merchant account, businesses are unable to process credit and debit card transactions. Trying to operate in cash-only is obviously inefficient and incredibly impractical – not to mention unsafe.
Another problem these businesses encounter is a lack of working capital. Without sufficient cash flow, these businesses are unable to purchase equipment or hire new technicians. All plans for expanding services come to a screeching halt.
Automotive Merchant Account Services
A high-risk provider like First American Merchant specializes in working with business types and industries considered to be high risk, including automotive businesses. Alternative lenders like FAM offer merchant accounts that are specifically tailored to meet the needs of each industry it works with. In this case, an automotive merchant account.
These merchant services not only allow auto shops to secure safe payment processing solutions, but also chargeback protection and prevention programs. The business can process debit and credit cards and keep a close eye on chargebacks. The biggest advantage of working with a high-risk provider is the application process; it can be completed and submitted in a matter of minutes, and merchants hear back in as little as 24 hours – if not sooner.
In addition to merchant accounts, business owners can also apply for alternative business funding options. Instead of waiting weeks or months for cash-flow relief, your business can secure cash quickly. No more missed opportunities to grow and expand. Having working capital available as needed eases transitions periods and makes hiring capable technicians a possibility.
If your auto shop is struggling to find a provider willing to offer merchant account services, consider contacting an alternative provider. The provider you choose should have years of experience with a strong support team. As you do your research and look at your options, make sure they are willing to offer flexible business funding and secure payment processing platforms.