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Joshua
Joshua, Lawyer
Category: Law
Satisfied Customers: 28249
Experience:  LL.B (Hons), Higher Prof. Dip. Law & Practice
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I am trying to partner with an online payment processor for

Customer Question

Hi,
JA: Hello. How can I help?
Customer: I am trying to partner with an online payment processor for a website we are soon to be launching. The payment processor (SecurionPay) have requested that our business should have at least 6 months trading under our belt as they don't deal with startups. Is there anyway round this, possibly by purchasing an existing business that has traded at least six months?
JA: Has anything been officially filed? If so, what?
Customer: Nothing as of yet.
JA: Anything else you want the Lawyer to know before I connect you?
Customer: Would I be able to purchase an existing business that has traded and have our new website trading under this existing business name?
Submitted: 19 days ago.
Category: Law
Expert:  Virtual-mod replied 18 days ago.
Hello,

I've been working hard to find a Professional to assist you with your question, but sometimes finding the right Professional can take a little longer than expected.

I wonder whether you're ok with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.

Thank you!
Expert:  Joshua replied 18 days ago.

Hello and thank you for your question. My name is ***** ***** I will be very pleased to assist you. I'm a practising lawyer in England with over 15 years’ experience. Please be aware that although I will endeavour to reply to you promptly, I am also in full time private practice and so I may not be available to respond immediately and it may also take me a few minutes to prepare a reply. The site will notify you as soon as I respond. I look forward to working with you to answer your question fully.

I am very sorry to read of the above and I imagine how frustrating it must be. I will certainly try to clarify the position for you.

May I ask if you have put your proposal to the payment processor please?

Customer: replied 18 days ago.
We have put nothing forward to the payment processor as of yet, simply we are a startup and need to prove we have been trading for 6 months+
Expert:  Joshua replied 18 days ago.

thank you. Your question is going to be difficult to answer and that there is no law that says this is what they must insist upon, and therefore equally there is no law that says they must accept you if you do as you suggest. Rather, this is a policy decision on the part of the provider made as a business decision which I assume relates to risk that they perceive in offering service to start ups.

Accordingly, I think the only way to know whether your proposal would work is to ask them because the risk of doing it before asking means that they could still say no - they are entitled to reject business they do not want as a private business.

It seems to me that if you genuinely take over established business, then they may well be satisfied with this but if the arrangement is essentially a sham whereby you buy an established company but then effectively start a new business through it rather than carrying on the existing one, this may be different, but I am conjecturing.

A more cost-effective approach might be to find a provider that is willing to offer service to startups, on a short-term basis even if the costs are higher initially ensuring that you do not commit to any long-term contract and then after the requisite period of trading, change horses to your preferred provider.