ACH processing for new businesses ↓
Most ACH processors, also known as automated clearing house processors, are hesitant to do business with companies that have been in business for less than one year. This is because these companies are considered high-risk, and the processor may be at an increased risk of fraud or non-payment.
When a company applies for an ACH processing account, the processor will typically conduct a thorough review of the company’s financial history and creditworthiness. This review is intended to assess the company’s ability to repay any debts or obligations it may incur through the use of ACH processing services.
If a company has only been in business for a short time, it may not have a long enough financial history to provide the processor with a clear picture of its creditworthiness. This can make it difficult for the processor to determine the level of risk associated with providing ACH processing services to the company.
In addition, companies that have been in business for less than one year may not have established a strong track record of financial stability and responsibility. This can increase the risk of fraud or non-payment, which can be costly for the processor.
Overall, most ACH processors are hesitant to do business with companies that have been in business for less than one year because these companies are considered high-risk. This is why it is important for new businesses to carefully manage their financial affairs and establish a strong track record of creditworthiness in order to be able to access ACH processing services.