Are you faced with some conditions that aren’t favorable for business funding? What credit-related obstacles may appear on your way while you’re trying to obtain business financing? Where can you get reliable and affordable funding for your business? How can you get low cost merchant services such as a bad credit merchant account without challenges? Read this post and you’ll know.
Business Struggles: Bad Credit Merchant Account
JJ Ramberg, founder of Goodshop says, “There is no magic bullet in business.” As he further notes, the majority of people are concerned about things they don’t have much or any control over. Here’re the top credit struggles that you should be prepared for so to succeed in your business:
1. Low Business Credit Score
Poor business credit score makes traditional banks and financial institutions stay away from your business. It increases the risk associated with your business.
2. Lack of Knowledge About Your Credit Score
If you don’t have a good understanding of how a business score is created, you’re creating problems for your business and your future credit opportunities. Remember to check your business credit score on a regular basis.
3. Business That’s Not Registered
Your business should have its own DBA or corporate identity. Otherwise, your potential lenders won’t take you seriously.
4. Being a Starter
New businesses struggle proving they’re aren’t high risk to business funding providers. Usually, starters are either required to provide high levels of asset security or aren’t approved at all.
5. Sticking Only with Traditional Banks or Financial Institutions
Why not try some new forms of business funding offered by alternative online lenders? With a reputable business funding provider and payment processor like FirstAmericanMerchant.com, you can get approved for merchant funding and other merchant services without difficulty.
First American Merchant boasts an A+ rating with the BBB and offers the most affordable rates for a bad credit merchant account. FAM is committed to helping you grow your business.
6. Not Using Your Business-Related Credit
For a new business, it’s reasonable to use a personal credit card for buying a plane ticket, etc. However, it doesn’t make sense to go on like this after your business is up and running.
7. Poor Personal Credit
Even if you’re a starter or you’re applying for a small business loan, you may be asked to provide a personal guarantee. Your personal financial situation plays an important role in accessing small business credit.
8. Turning a Blind Eye to Your Partner’s Credit
Are you running your business with your spouse, brother, or another partner? If your partner has poor credit or is terrible at finances, you’d better exclude his/her name from records.
9. Missing the Best Time to Apply for Funding
When things are going best, don’t wait too long and miss this fine opportunity. You don’t know what will come next, do you? Maybe you’ll be faced with a bad credit risk, won’t you?
10. Being Focused Only on Other Types of Funding
By being focused only on crowdfunding, angel investors, or family and friends, you aren’t doing much to build your credit. This can’t be beneficial to your overall growth plan.
11. Concentrating Only on Today
Have a long-term vision of your success. Have a longer view of your growth in the form of your business credit score. Keep tracking your cash flow regularly.
You’re going to face a number of obstacles on your way to success. Both your day-to-day operations and long-term growth require enough hard work. Go through the above-mentioned points and take them into account while growing your business.