A high risk merchant faces many challenges. From opening, to keeping customers, and even finding funding. High risk lenders are few and far between, and even when you find one, they may not understand your industry. With FAM, you will not have these issues. FAM employees specialize in most high risk industries to help merchants better understand their risks. For those in need of borrowing funds, FAM also provides these services.
For high risk merchants in need of funds, there are programs available to you. For those with a merchant account, there is a merchant cash advance. A merchant cash advance is not a loan – it is a “buy in” into your business. Funds are paid back daily through small increments from your sales, instead of having one lump sum payment every month, like with a bank loan. There is no paperwork hassle, since your merchant account provider already has your information. A FICO score is not a big deal either; merchants with less than a 500 score can apply.
For merchants without a merchant account can apply for an ACH loan. While the process is similar to a merchant cash advance, the payback comes in small, daily increments from your business checking account. The criteria is stricter; for instance, you must have at least $10,000 in sales per month and keep less than three chargebacks per month. This seems simple for many merchants, but for high risk merchants keeping below three chargebacks per month can be a hassle. You must also have been in business for a minimum of six months. If you are lacking a merchant account and are in need of extra business funds, consider this as your best option.
High risk merchants have a hard time finding a lender. Banks are a terrible idea, and many merchant account processors are scared to give funds to their clients. With a high risk merchant account provider like FAM, you can rest assured that your lending experience will be a positive one. Contact FAM or your merchant account provider to day to learn of your options.