Bad credit is a common thing these days. But business in any case needs to develop. And this often requires loans. Traditional financial institutions (banks, credit organizations) in most cases refuse them to such a business. But companies have appeared on the market that undertake to lend, despite a bad credit history. And such companies have gained high popularity among entrepreneurs.
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Over the past few years, they have successfully entered the market and created their own niche. While these companies are successful and trusted by their customers, they find it difficult to deal with banks and payment service providers. They have big problems in obtaining approval to open a merchant account with these financial institutions.
Lending to businesses with bad credit is often considered a controversial matter. For banks and payment service providers, such entrepreneurship is synonymous with a prohibited or restricted type of business. In short, the lending industry to companies with bad credit history has been labeled as “high risk” by banks. Basically, this means that no matter how successful your business is or how much profit you make, if you need a merchant account (merchant account), you will be immediately turned down.
Reasons such as the high likelihood of theft, fraud and chargebacks from customers of such a business made it risky. After all, the nature of the business, which consists in issuing a loan to a company that, for whatever reason, has violated its debt obligations to the bank, is really risky. And this risk is to some extent shifted to the financial institution that provided it with the merchant account. After all, if the client of such a business does not return the loan, then this business may also fail to fulfill its obligations to the bank or the payment system provider that provided the merchant account.
Problems in obtaining a merchant account for a business taking a loan for repairs
Entrepreneurs involved in lending to distressed companies face many difficulties in finding a payment system provider who would provide them with a merchant account. That is, they face the challenges that high-risk businesses face. These problems do not depend on how successful their case is. And while distressed business lending is a well-established, efficient, billion-dollar global industry, banks often refuse to process payments for entrepreneurs working in it. As if they refused to process payments for a high-risk business.
But, given that an increasing number of payments are made using bank cards, denial of a merchant account actually means a refusal to conduct business at all. Compared to other entrepreneurs with such accounts, you will not be competitive.
Chargebacks, like in other risky industries, are a big problem for companies lending to troubled businesses. Excessive chargebacks means your payment provider won’t want to provide you with a merchant account. But despite this, there are many well-known providers offering their services to a business lending to troubled companies.
Reliable solutions from Wellcoinpay for merchant accounts for business lending to troubled companies
Are you an entrepreneur in lending to troubled businesses with bad credit and looking for affordable but quality merchant account services that suit your business? Wellcoinpay, headquartered in London, is a leading provider of high-risk business merchant accounts for a variety of industries.
With an extensive network of acquiring banks and experience in all high-risk industries, contacting our company is the ideal solution for your payment solution needs.
We offer comprehensive merchant account services for businesses that lend to companies with bad credit history. Our solutions meet all your payment needs and help you expand and grow your business.
As an experienced provider, we understand the challenges and risks associated with the concept of high risk inherent in the business of lending to troubled companies with bad credit history. We understand and help him accordingly.
If you are in need of a merchant account, you must be honest about every detail requested by our specialists in order to ensure prompt approval of your account.
With a team of experts who are ready to answer all your questions, incl. and questions about creating a merchant account for your business. Apply and contact us right now!