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Oct 10, 2023 · Business lending scams will often promise you outstanding rates, even if your company’s credit is subpar. But you’ll only get access to these dream loans if you pay an upfront fee — which the scammer will promptly pocket before they disappear.
- Upfront Payments. Be careful when applying for loans promising 0% interest or no or low credit requirements applications in exchange for affordable yet upfront payments.
- Expensive Consultancy Fees. The loan application process for most business loans is extensive and unvaried. It has a lot more complexities than personal loans.
- Funding Kit Scams. Many scammers email business owners about a grant or funding the government offers. They usually call it a “kit,” which requires upfront fees to access it.
- Ghost Investor Scams. Another popular scheme amongst the business loan scams through emailing is ghost investor scams. These scams are meticulous. They stalk many business websites and analyze their financial situations.
Jul 26, 2024 · If you need a business loan, there are plenty of legit online lenders that can help. Unfortunately, you’ll also need to watch out for business loan scams. In this guide, we’ll show you some common business loan scams, what to do if you fall victim and which lenders are legit in Canada.
Mar 15, 2024 · Business loan scams can happen in different ways: A scammer might pretend to represent a bona fide lender to gain your trust — and then take your money. Or, they’ll persuade you to give up your personal identifying information that they’ll use to open new accounts under your business’s name.
Oct 13, 2022 · Business loan scammers are increasingly common and often pose as representatives from respected brands or banks. They’ll try to contact potential victims online, most time via email, ads, or social media.
Mar 24, 2021 · Here are common business loan scams to watch out for, and if you do fall victim to a scam, how to report the incident and get back on your feet. 1. Advance Fee Scams. What It Sounds Like: “Business loans starting at 0% interest! No credit, low credit, and bankruptcy okay. Low application fee to get started!”
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Jun 17, 2020 · Many fraudsters use more sophisticated methods to prey on businesses. If you’re a business owner, it’s a good idea to familiarize yourself with the most common business loan scams out there and ways to avoid them. 1. The Peer-to-Peer Lending Scam. Peer-to-peer lending is a legitimate and significant source of online financing for small businesses.
