Especially in the early years, money is tight for small businesses. When their owners want to grow their firms, buy extra inventory, hire personnel, or fund a marketing campaign, they often need to borrow the money. Accessing financing can is tough when a business is small and new, and it can seem impossible if its owners also have poor credit. In 2016, 45% of small businesses applied for some type of financing, according to the 2016 Small Business Credit Survey, released by the Federal Reserve. Of those applicants, only 40% received the full amount they requested. Bad credit, which is […]

Bad credit or not; business must go on! And if you expect to accept credit cards from your buyers, then a merchant account is a basic necessity for you. A merchant processor receives your credit card sales for a fee and links transactions to your business checking account. Every processor has their unique criteria for merchant account approval. Most of them will look at your credit. Luckily, some account processors will offer you a bad credit merchant account. Here are things to take into consideration when seeking a processor. Your Business Structure For C-corporations with an EIN (employer identification number) […]

Once a habit is created, it can be very difficult to break. Has your financial situation become a vicious cycle of debt and spending? Consider the following 5 bad money habits you need to break today to regain financial freedom: 1.      Spending more than you earn According to research from the National Financial Capability Study, one in five Americans spend more than they earn and 38 percent break even. The difference between those who struggle with debt continuously and those who stay in control of their finances is spending more than they can afford. Living an excessive lifestyle […]

Bad credit can have affect your life in many ways. It can make it hard to rent an apartment, get the job you want and even prevent you from getting a cell phone contract. For the aspiring entrepreneur, poor credit can halt business plans altogether. Bad credit can not only lead to higher rates and more restrictive terms on approved loans, but also affect your ability to be approved at all. Fortunately, the creativity and flexibility of alternative providers have made it much easier for business owners with bad credit to secure the working capital they need. High-Risk Providers A […]

While there are many reasons why a company might be categorized as “high-risk”, this typically means the business is operating within a high-risk industry and/or a risk of financial failure exists. High chargeback rates and limited time in business will also push a business into this category. If you are struggling with bad credit, your business will definitely be considered “too risky” to extend a small business loan to. So where can you go from here? How to Get a Loan with Bad Credit Depending on how bad your credit score is, it will be very difficult – if not […]

Are you a small business owner interested in how you can get a merchant account so to start accepting credit cards? Well, you should be aware that your credit can greatly impact on whether you can get approved for credit card processing or not. This article will tell you about good and bad credit, as well as how you can get approved for a bad credit merchant account. Your Credit Score Really Counts The results given by different scoring systems may have slight differences. FICO (Fair Isaac Corporation) is a data analytics company based in San Jose, California focused on […]

Owners of businesses that go through periods of rough seas know it can be challenging for them to obtain access to working capital. Struggling small businesses usually don’t expect a warm handshake from their bank or credit union. Instead, they very often get a cold shoulder. If you own a struggling business and want to get business funding, read below. Business Loans for Struggling Businesses Even if you work hard and with great dedication, there’re factors outside of your control. These include recessions, surging competition, rising supplier pricing, and changing customer preferences. You can’t predict them or keep them under […]

Your business needs to hire a few more employees and purchase new equipment, but you have run into an obstacle. You need to boost your cash-flow to do so, but do not have the credit score you need to qualify for a small business loan. If you have found yourself in this situation, you are not alone. Many small business owners that have less than stellar credit struggle to find a lender willing to work with them. This can make day-to-day tasks incredibly difficult to fund, not to mention lack of capital can push your business into a dangerous cash-flow […]

Merchants who have bad credit are viewed as riskier borrowers by small business loan providers.  Creditors who lend money to bad credit merchants usually shy away from these borrowers since they aren’t sure high risk merchants won’t miss their payments or default. The Fair Isaac Corporation (FICO) calculates credit scores and provides the famous FICO score. The Corporation uses information from the 3 credit bureaus, Experian, TransUnion, and Equifax, and calculates the score. Be aware, your bad credit can cause a number of problems such as higher interest rates. According to FICO: Maxed-out card costs 10 – 30 points for […]

Closing down a business is a big decision. It’s critical to take the right steps involved in the process. The reasons may be associated with poor management, poor marketing, anemic sales productivity, poor cash flow, inadequate investment capital, imprudent cutbacks, poor supply and delivery chains, and bankruptcy caused by rapid expansion. If you’re closing because you lack the necessary working capital, consider applying to a reputable business funding provider like First American Merchant to get low-cost and reliable business loans to improve your situation. Firstamericanmerchant.com is also a respectable processor that offers exceptional payment processing services, including a bad credit […]