It’s a must for home-based businessmen nowadays to accept credit cards, especially those who have brought their trade online. It’s because most people prefer to shop with these plastics and if you can’t offer them this convenience, they’ll probably jump to the next relevant site that does. People put a premium on time more than ever and what they can save from not having to wait for checks to clear is always greatly appreciated. If you still don’t accept credit cards, it’s most certainly time you did. But before this is possible, you need to apply for a business merchant account with a merchant bank.
One of the key issues that financial institutions will be looking into while considering your application for a merchant account is your credit standing. This is especially true when you run a home enterprise which means your personal credit score will be the same as your business’. For this reason, you need to take care of your reputation as far as settling your financial obligations is concerned because this will definitely impact your chances of being able to accept credit cards.
Even if you’re not aware of your actual personal credit score, you would be able to gauge yourself while referring to personal experience. One is the level of trust that you may or may not enjoy from your supplier. If you’re allowed to defer payment for a good amount of time, that’s a good sign. But if you are never given this privilege and always have to pay up front for each batch of supplies you get, that could be a problem. Another way to estimate your credit score is by the contracts you win. Big ones indicate good things while smaller ones may mean you still have quite much to prove. Some businessmen are actually not even permitted to bid and obviously, these are the ones who might never stand a chance to acquire a merchant account. This is because before a merchant is allowed to bid, he will be required credit checks and bonds which are, of course, good indicators of your credit score.
Just because you’re a home-based businessman doesn’t mean you’re excused from bureaucratic processes that multinationals undergo. Of course, there will be no exceptions and this is why you need to be very conscious about building a good credit score. As long as you take your business and your obligations seriously, this shouldn’t be a problem.
Simply making a habit out of paying your bills on time can mean the difference between being granted that merchant account and being rejected by a merchant bank. Besides, restoring damaged credit can be financially taxing and it will be the last you need when you simply want your business to grow and work for you.