This article summarizes the top reasons that your application for ecommerce funding may have been rejected.
Your application for funding for several reasons. Here are the main ones:
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Eligibility Criteria Not Met: Sellers must meet specific requirements such as being a US-registered business, operating in supported industries, and being active on integrated ecommerce platforms. If these are not met, the application is likely rejected.
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Insufficient Sales Volume: Our partners have sales thresholds depending on the product. So it will vary depending on our partner - however, Failing to meet these criteria can lead to rejection.
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Credit Score Issues: Our partners maintain credit score requirements. The business owner or guarantor must typically have a credit score of at least 620-650, and businesses in poor credit standing may be rejected.
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Prohibited Industries: Businesses in industries such as cannabis, gambling, adult content, or those involved with regulated or illegal products are automatically declined.
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KYC/KYB Failure: Our partners conduct Know Your Customer (KYC) and Know Your Business (KYB) checks. If a business or owner fails to pass identity verification, credit checks, or screenings (e.g., OFAC list), they will be rejected.
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Risk and Underperformance: If the seller's business shows signs of underperforming sales or instability in payout history, they may score poorly on with our partners risk assessment and be rejected.
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Fraud Detection: Automated fraud detection mechanisms filter out applications with high fraud probability.
These criteria form an integral part of our partner's robust risk and credit assessment process, which is designed to ensure compliance and minimize risk.