Lenders would certainly need to know whether granting your company the status might have higher risks for accepting credit payment. For example, home-based companies may have more difficulty to obtain a merchant status as compared to companies with stores. Aside from this, companies that are already established for some time in contrast to those that are only starting out may be granted status quicker.
• Your Sales Track Record.
Lenders would also be interested to know if your company could really bring in money to the table. If your company has a dependable sales track record, then the easier for you to achieve status.
• Your Credit History.
General credit-worthiness would certainly be given much consideration. Be prepared for your personal or business credit histories to be investigated. In line with this, lenders may also try to check with your previous merchant accounts, about your business’ performance as this give feedback on how credit worthy you are.
What Should You Do To Achieve Merchant Status?
To prepare your company for application, you must be ready to have all information about your business as well as your personal credit history at hand. This includes how you obtain the necessary finances for your company and how you run things in the company. Requesting for a credit report for your business before hand will also be a good move.
Most importantly, be sure that you have maintained a favorable business and personal credit score for lenders to consider you faster. Pay your dues on time and avoid mounting up huge debts.
In your small business, establishing a merchant account may seem unnecessary or too much of a hassle at first, however, once you start accepting credit payments in your business, you will surely realize how much it can contribute to improving your company.
It does not only by boosting sales, but it can also provide much more convenience to your customers and even establish your company. More importantly, accepting credit card payments will surely improve cash flow.
In the end, once you will see how your small business can grow by having a certified merchant status, you will realize how all of your efforts were actually worth it.