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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!”
- Refinancing
When you refinance a business loan, you essentially pay off...
- Small Business Loan Brokers
These days, your lending options aren’t limited to...
- Low-Interest Business Loan
This is great news for small business owners looking for a...
- Merchant Cash Advance Companies
With only three months in business and a minimum personal...
- Refinancing
- How Most Common Business Loan Scams Work
- Upfront Payments
- Expensive Consultancy Fees
- Funding Kit Scams
- Ghost Investor Scams
- Credit Repair Scams
- How to Report Business Loan Scams
A business needs financing to fund daily operations, growth such as improvement, renovation or expansion, and other investments. The go-to option for these is a business loan. The most common are Small Business Administration (SBA) loans, equipment loans, invoice factoring and financing, merchant cash advances, personal loans, and many more. Howeve...
Be careful when applying for loans promising 0% interest or no or low credit requirements applications in exchange for affordable yet upfront payments. These are often labeled as payments for “processing,” “application,” or “insurance” by scammers. Such loans are currently among the top five loan scams. However, not all financing companies that ask...
The loan application process for most business loans is extensive and unvaried. It has a lot more complexities than personal loans. Most of the time, lenders run a background check and validate all documents submitted by a business owner before judging whether or not they’re eligible for a loan. Although these requirements and loan application proc...
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. Similar to upfront payment scams and expensive consultancy fees, these funding kits are just scams. The United States (US) government never asks third-party agencies to email about nor offer gra...
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. When they see a company struggling, they immediately email to inform them that an investor is interested in supporting your company financially. Howeve...
Financially distressed business owners are also the main targets of credit repair scams. These are often offered as “services,” falsely claiming they can improve credit scores. Most of the time, they inform you that you have negative information on your credit report and will offer to remove it to improve your credit score. However, that informatio...
Let your entrepreneurial friends know about these 5 types of business loan scams. Feel free to share this page if it was helpful. Meanwhile, you can report financial scammers and any other suspicious loan activity to the Federal Trade Commission (FTC) using the portal below: Report To The FTC Here
Oct 10, 2023 · If you’re in the midst of shopping around for a business loan, you should keep an eye out for deals that offer overly gracious terms. Business lending scams will often promise you outstanding rates, even if your company’s credit is subpar.
Mar 15, 2024 · 2 scams to look out for after you’ve taken a business loan. Business owners must also be wary of post-loan scams. Be aware of these two scams — especially if your business struggles to handle its debts. 1. Debt relief scams. There are legit business debt relief options. Debt settlement and debt management companies charge a fee, but this ...
- You receive an unsolicited loan offer. Cold-calling small business owners to offer loans isn’t a common marketing tactic among legitimate lenders. If you receive a call, letter, email or text inviting you to apply for a PPP loan or another loan or grant backed by the U.S. Small Business Administration (SBA), it could be a scam.
- The offer is too good to be true. Thousands of dollars, no strings attached? Guaranteed approval without so much as a credit check? If a loan offer seems too good to be true, it probably is.
- The lender asks for upfront fees. No matter where you get funding, your options will likely involve some type of small business loan fee. But legitimate lenders disclose these fees clearly and prominently.
- The lender’s name sounds a little off. Are you applying for a loan with Walls Fergo or U.S. Bunk? Some small business loan scammers try to sound legitimate by using names that are oddly close to well-known lenders’ names.
Apr 3, 2019 · WARNING! SCAM! Protect your business! Get expert tips on spotting fake loan scams, red flags to watch for, and trusted resources to avoid loan fraud.
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Jun 11, 2021 · Learn how to avoid these common business loan application mistakes. Despite the high risk of scams in this day and age, there are ways to detect scams before they happen. More specifically, there are five signs to watch out for. Let’s explore these in-depth below. High Pressure to Commit.
