Do I Need a Merchant Account?
A merchant account is key when trying to receive a small business loan; it allows you to process debit and credit card payments online or in your store with your business name on the statement rather than your personal account. Your merchant account and credit card processing history is what a lender uses to determine if you are eligible for an advance and to pay back the amount in a timely fashion. In most cases, a 3-month history of credit card processing of sufficient amounts is enough to get you a loan. A business loan is typically paid back using your merchant account to pay a fixed percentage of the credit card processing you do each month.