Starting a credit repair business can be a lucrative business that will ultimately help a large number of people. However, collecting payment for services rendered can be difficult due to the fact that credit repair companies are given a high-risk merchant statement. High-risk accounts will have higher fees that can eat up profits, but trying to circumvent the system by falsifying an application for a merchant account is not an option. It can cost a lot of time and money in the long run. The following are 5 steps that new credit repair companies must take to obtain a merchant account.
1-Reserve some money before starting the business to cover the high fees associated with a high risk account. Unfortunately, there have been too many companies in the past that promised credit repair services, took a customer’s money, and then disappeared. This has made things difficult for legitimate companies, especially new ones.
2-Take the time to find at least three companies that offer services for a high-risk merchant account. Compare the rates and prepare to do a little research on each company. Don’t automatically sign up with the one offering the lowest rates.
3-Research each company on the Internet and check with the Better Business Bureau. Whenever possible, consider contacting current clients of the company and ask them what they think merchant account service is like.
4-Once a company has been chosen, it is time to start the application process. The application is quite simple. However, a good credit rating helps ensure that credit processing services are provided to a new credit repair company. It may take several weeks or months for approval to be obtained. Follow-up phone calls and emails may be required to check the status of an application for a high-risk merchant account.
5-Before signing any document, read every word. Make sure the payment dates and the frequency of payments are clearly explained. Please understand that there may be a longer wait time for applicants with a newly established business or an applicant who has less than stellar credit.
The process can be sped up by ensuring that all necessary documents are submitted with the application. Letters of recommendation may be required for some applicants. It is a good idea to do them as soon as possible. Don’t let the difficulty of obtaining a high-risk merchant account keep you from starting a credit repair business.
