There is a sense of pride that comes from the knowledge of helping high-risk businesses succeed in acquiring merchant accounts. While Instabill strives to provide solutions for every business, it cannot be reckless about the partners it selects. Every solution provider needs to consider the risks of taking on a new business, especially when that entity is a young startup.
Startups are notoriously volatile enterprises, and it is challenging or most traditional merchant account providers to validate adding such companies to their portfolios. Instabill established itself as a niche solutions provider, which is why the company is willing to take more significant risks on up-and-coming firms. However, as a potential client, it is wise to acknowledge the challenges facing any merchant solutions provider.
Lack of Experience
The primary concern of banking partners is the lack of experience with startups. New companies have not proven their lasting ability. Too many young companies fail with the first six months to two years. A financial partner takes on the burden of such failures, which is why so many are leery of providing assistance.
Thankfully, while many traditional or conventional banks steer clear of high-risk portfolios, Instabill embraces the challenge, as does its partners. However, while the company is willing to take a chance on a startup partnership, not every firm matches or meshes with the company’s partners. Therefore, any startup will need to go through a stringent vetting process, often requiring thorough KYC documents that go beyond the standard forms.
Another issue with many startups is a lack of working capital or cash-on-hand. Having excess money in the bank is representative of the health of the business. Most companies need capital to run day-to-day operations. A shortage of cash often results in operational problems, and it can represent the downfall of a firm.
Instabill understands that startups will not always have excessive amounts of working capital, and may be willing to look beyond the shortage if a business plan is solid. Also, investment partners can be a large part of any final decision regarding banking solutions for a new company. It is hard to specify the certainty of a partnership without first reviewing specific financial information.
Limited or No Processing History
It is difficult to secure merchant account solutions with no processing history. If your business has no experience with merchant accounts, then how do you demonstrate an ability to cover costs or reliable repayment. Most traditional banks will not provide solutions when a company provides no evidence of processing or only offers little support for their abilities.
Even Instabill considers a lack of payment processing history a red flag, but that does not mean your company is out of luck. Instabill’s banking partners are already willing to take risks. Still, before they can make any final decision about your startup, you will likely need to prove financial stability in some way or another.
Desire for the Best Rates
Often, the main thing getting in the way of finding merchant account solutions for startups is a desire for unrealistic rates. As a new company with little history and capital, you cannot expect to receive the best rates in the industry. Rates relate to the risk of partnership, which often means that the younger a company is, the higher the rates will be.
Instabill provides excellent rates for their merchants, but cannot guarantee the lowest rates. Such a guarantee would be irresponsible without first examining the financials of the business. Having high expectations is OK, but do not let those expectations ruin a chance at a partnership. You must remember that, as a startup, you present a high-risk to banking partners, which automatically increases rates.
While many challenges face startup businesses, especially when it comes to processing solutions, Instabill does offer the best opportunity for high-risk companies. There are plenty of startup merchant accounts available, but finding the right ones take time and an understanding of your company. Instabill has customer support ready to take your call and answer your questions, but do not expect an automated conversation. The goal of Instabill representatives is to get to know your business so that they can provide you with the best solutions for your needs. Every company has the right to process payments, and yours is no exception.