First of all we need to look at what is constitutes “high risk” by the banks. There are three aspects to this. The bank, who ultimately approve or decline the businesses application, will look at whether you are selling a high risk product in a high risk industry. This can range from casinos, pyramid selling, adult services or travel agents or a ticket agency.
An example where customers pay well in advance for goods is a music concert or a holiday. The bank processing the application will also look at the way you process payments, i.e. are they face to face or are they primarily done via MOTO (mail order telephone order)? The final aspect can be an individual or businesses bad credit record. Credit records will show extensive details of borrowing history and repayments whist detailing any defaults on an account or any missed payments and also county court judgements or bankruptcies. Every application is taken on its own merit so don’t get discouraged.