Above all other goals, every entrepreneur wants to stay competitive— because if you ran out of business then you’re as good as “back to square to square one.” Staying competitive involves knowing the risks that today businesses face; things that could ruin your bottom line. If your business isn’t ready to keep up with new trends and address the growing pains in your sector then you are bound to lag behind and lose customers to you fast-moving counterparts. The move towards a customer-centric way of conducting business has increased the risk of failure among merchants. Customers now want a more […]

You’ve recently found out that your business is considered “high-risk”. Suddenly, many doors that were open to you are closing. The task of running your small business just became even more challenging. But what does it really mean to be high-risk? And is there anything you can do about it? In some cases, being categorized as high risk is not the result of anything you have done. In other cases, it is. Some industries are simply riskier than others, which causes many banks and traditional lenders to turn you away. If your business is new, it can also place you […]

When you need cash for your company or business startup, your first thought is probably to apply for a business loan at your local bank. However, when your get there, you might have been surprised to find out that they are unwilling to work with you. You have all the necessary paperwork and a strong business plan, so why have they closed the door in your face? After asking a few more questions, you find out that your business is considered “too risky”. What is a high-risk business, and what does this label mean for your business funding needs? What […]

The ACH Network can be defined as a batch processing system enabling financial institutions to accumulate transactions throughout the day before sending them in batches for processing. ACH payments aren’t the same things as traditional paper-based checks: the former payments are transmitted electronically, thus accounting for lower costs and faster processing times. Finding the right ACH merchant account provider can be a real challenge, especially for those who’re running a high risk business. The majority of ACH processors avoid working with high risk merchants. So, it’s critical for high risk business owners to apply to a reliable and experienced high […]

Women-owned businesses made up almost 30% of all businesses based in America. They accounted for an economic impact of almost $3 trillion, thus generating or maintaining 23 million jobs, which is 16% of all the jobs in the US. In 2016, innovative companies were introduced by female founders. Women entrepreneurs earned millions to expand their businesses. Financing for Women-Owned Businesses It’s not too easy for women to get access to working capital. It can be challenging for them to obtain business financing from traditional lenders to grow their business. To give approval for a small business loan, traditional lenders can […]

Struggling to find the merchant account services you need? If you’ve been turned away by the bank – or multiple banks – it’s time to consider what a high-risk provider can offer you. For the “high-risk” business, small business funding and payment processing services continue to be difficult to find. A high-risk provider offers safe and secure options, regardless of the risks involved with a business type or industry. First American Merchant, for example, is a full-service provider. Meaning, their team of professionals have years of experience helping “hard-to-approve” merchants secure all the services they need to operate smoothly and […]

Penny auctions (also known as bidding fee auctions) are a type of all-pay auction, meaning all participants are required to pay a non-refundable fee to place each, small incremental bid. In order for these penny auctions to take place, these businesses must have electronic payment processing. The ability to accept and process credit and debit cards requires a merchant account – something that is not easy for a penny auction business to secure. Penny auctions are considered to be high risk. In fact, their reputation are so tarnished by scam websites and businesses that take advantage of consumers that they […]

According to Sean O’Malley, president and co-founder of SmartBiz, “Although small businesses make up a vital part of the economy, access to small-business loans has been restricted since 2008.” Even though small business lending options are improving, there are still many entrepreneurs that are still ineligible for traditional lending options. For one reason or another, these businesses are considered to be too risky and are turned away. Banks refuse to offer business financing of any kind. Thankfully, the number of alternative options for small businesses and startups continues to increase. If you’re business is currently in need of a little […]

Some industries are considered to be riskier than others. For these businesses, funding options becoming seriously limited. In an effort to secure the capital they require to operate smoothly and cover expenses, many turn to high risk business loans. The problem with trying to secure a small business loan with a bank is that traditional lenders are unwilling to work with risky industries or those struggling with a bad credit history. Even if they do offer specialized business loans, you can expect to experience long wait times for approval, hefty collateral requirements and extensive documentation requests. As a result, startups […]

The high-risk sector is lucrative, but it is also marred with difficulties. Among the many challenges merchants in risky industries face is raising funds. Banks and other traditional lending institutions rarely issue loans to businesses that have a large probability of failure, and when they do, they usually choke up the recipient with high-interest rates and strict requirements. Business owners are often left grappling to find alternative sources. If you ask an expert, they’ll likely advise you forego high-risk business loans, and instead apply for a cash advance. And below are some reasons why it would be a good idea […]