Merchant Facility Rejection

Dinesh · #1 (**Link to this post**) 11-10-09

Hi,

I have problem in Merchant facility. I am new in business and i am going to open new retail shop in Brisbane. We register company for this business.

My problem is merchant facility. Two bank have been declined application of my company. Bank dont want to say me reason for decline. I check credit history of all director but there is no problem. I need help to short out this problem. I am in big trouble. Can anybody guide me? My rent has been started shop is ready to open but problem is merchant facility. Is there any option? How to short out this problem.

Please do the needfull if you can.

Thank you.

Regards,
Dinesh

kathiemt · #2 (**Link to this post**) 11-10-09

I expect it's because your new business doesn't have a credit history yet Dinesh. Unless you can partner with someone who has some business credit history it's unlikely you'll get the facility for awhile. From memory, when I got mine, I think I had to have a minimum 6 months in business but that was quite some time ago.

I know of businesses that still run with cash and cheque only and no credit facilities and perhaps you might have to do the same till the business has had time to establish.

small business marketing · #3 (**Link to this post**) 11-10-09

in the short term you could use something like these guys

http://www.eway.com.au/Business/Overview.aspx

you can process transactions online even if the client is standing in front of you. I think they can set up an account pretty quickly. Downside is you ned a PC in the shop with a connection to the internet, and transactions will take a little longer than if you had an eftpos machine. I would only use this whilst you are getting a proper service set up.

For a longer term solution, have you tried the smaller banks like Bendigo Bank, or a local credit union?

Good luck

Gary

Dinesh · #4 (**Link to this post**) 11-10-09

Hi thank you for your valuable advise.

I know couple of people who get merchant facility for new business even they new business and they are not resident.

Do we have any other option? Retail shop without merchant facility very difficult!

Thank you.

Regards,
Dinesh

Quote:

Originally Posted by kathiemt

I expect it's because your new business doesn't have a credit history yet Dinesh. Unless you can partner with someone who has some business credit history it's unlikely you'll get the facility for awhile. From memory, when I got mine, I think I had to have a minimum 6 months in business but that was quite some time ago.

I know of businesses that still run with cash and cheque only and no credit facilities and perhaps you might have to do the same till the business has had time to establish.

kathiemt · #5 (**Link to this post**) 11-10-09

I've lived in Australia all my life so have no experience of what it might be to come to a new country and then set up business.

Do you have an Accountant? I strongly encourage you to get one. Perhaps your accountant can work with you to get this sorted as they would have the knowledge and experience required for helping businesses get going.

Dinesh · #6 (**Link to this post**) 11-10-09

Hi Gary,

Thank you for your guidence. I just applied in commen welth and west pack. I think these both are big one. I am going to apply in small bank tomorrow.

Could you please tell me what i need to take care for better application? Is it better to apply in the bank where have personal account since long time?

Thank you

Regards,
Dinesh.

Quote:

Originally Posted by small business marketing

in the short term you could use something like these guys

http://www.eway.com.au/Business/Overview.aspx

you can process transactions online even if the client is standing in front of you. I think they can set up an account pretty quickly. Downside is you ned a PC in the shop with a connection to the internet, and transactions will take a little longer than if you had an eftpos machine. I would only use this whilst you are getting a proper service set up.

For a longer term solution, have you tried the smaller banks like Bendigo Bank, or a local credit union?

Good luck

Gary

Dinesh · #7 (**Link to this post**) 11-10-09

Hi,

Accountant cum Lower has been engaged by me, Unfortunately he just charge me very high service fees ($250 per hour) but dont found any result in favour of me.

Do you have any idea or trick to know reason from bank about rejection of application ( Banj dont want to declare reason - this is the tragedy for me)

Any way thank you for your time. If you have any idea then let me know.

I will try to apply small bank as advise by other forum mate then see what is the result.

Thank you.

Regards,
Dinesh

Quote:

Originally Posted by kathiemt

I've lived in Australia all my life so have no experience of what it might be to come to a new country and then set up business.

Do you have an Accountant? I strongly encourage you to get one. Perhaps your accountant can work with you to get this sorted as they would have the knowledge and experience required for helping businesses get going.

KarenC · #8 (**Link to this post**) 12-10-09

I have found the Commonwealth Bank good for merchant facilities for very small businesses. Hopefully today they will help you out.

Dinesh · #9 (**Link to this post**) 12-10-09

Hi Karen,

Actually Commenwealth is the bank who declined my application.

Thank you.

Regards,
Dinesh

Quote:

Originally Posted by KarenC

I have found the Commonwealth Bank good for merchant facilities for very small businesses. Hopefully today they will help you out.

KarenC · #10 (**Link to this post**) 12-10-09

Oh no, I would have thought they'd give it to you. Has Westpac or St George replied?

The other thought was to join the Giftwares and Homewares Association as ALL members are entitled to the Commonwealth merchant facility through them.

http://www.agha.com.au/Membership/Wh...S/Default.aspx

They are very helpful to all retailers.

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Merchant Facility Rejection