5 Ways To Overcome High Risk Business Challenges
June 3, 2023
Running any business is not easy, but it can be especially challenging if you’re a high risk company. Not only will funding with traditional banks and investors be near-impossible to come by, but insurance companies and payment processing companies are also reluctant to provide their services. You will be asked to adhere to some compliance requirements determined by the state and federal authorities, in addition to other individual requirements, and failure to which to comply may cost you.
What’s more, is that there is also the risk variable for what got your business categorized as needing a high risk merchant account in the first place; whether that be a high rate of chargebacks, bad credit, or a bad history with previous financiers.
So, what can you do to make sure your business stays afloat when you have these struggles weighing you down? Well, here are five ways to help you out:
1. Pick an Ideal Business Structure
Although all structures have their own ups and downs, choosing a that reduces your personal liability, such as a company, limited liability company (LLC), or limited liability partnership (LLP) can work better if you operate a business with a high risk merchant account. A sole proprietorship is often avoided by high risk entrepreneurs, as that will render them open to personal liability for suits that are lost or any debts the business incurs.
2. High Risk Merchant Account Financiers
Obtaining funded by traditional financial institutions will barely be an option if you’re a merchant. If your company requires an injection of money don’t waste your time with typical banks. Rather, look at applying to financiers which are known to deal with high risk businesses. Should you find the right lender merchant cash advances and high risk merchant account loans can be excellent solutions.
3. High Risk Merchant Accounts
Any insecure company that wants to accept unsolicited payments from its customers will need to register for high risk merchant account credit card processing from a reputable provider. Businesses that specialize in high risk merchant accounts for businesses in these industries are more inclined to approve your application compared to payment processors like banks. Moreover, because they’ll be equipped to deal with issues and your specific requirements.
4. An Excellent Insurance Strategy
It is essential that you register for insurance coverage, if your business is involved with actions. Insurance will shield you from liability in the case of difficulty or an injury. Insurance businesses charge a premium that is higher and a few even exclude businesses. Do some investigating that can offer cover and whose rates make sense for you.
5. Legal Help
As a high risk merchant who specifically needs a high risk merchant account, you will have too much on your plate to manage chargeback disputes, lawsuits, and regulatory transgressions. A good attorney will help you deal with any legal issues that may arise later on, and will give you advice on the best way to comply with regulations and all laws.
It might be tough to succeed as a high risk merchant, but nobody said it’s impossible. Following the tips above will set you on the course that is ideal.
At PayKings we like to keep things as simple as possible for you. Here’s what you can expect and how we can help get your high risk merchant account set up for payment processing is as little as six hours:
1. Fill out an online application
2. Submit the proper documentation
3. Let our expert underwriting team go to work for you to get you approved
4. Start accepting payments and making money
June 3, 2023 | High Risk Merchant Account | Guest Post