![]() ![]() ![]() They might have a professional-looking website, but if there is no way to contact them, that is a huge red flag. The Lender has No Contact Informationīe wary of lenders without contact information. As a general rule, if someone is asking you for money upfront, it is likely a scam. Don’t let them scare you! Finding a lender is not difficult, and you don’t need their help. You will have lost your money and will be no closer to securing a lender. Then, they will take your money and disappear. A swindling broker will claim they can connect you with the perfect lender for a fee. They will make it sound like you won’t be able to find a lender on your own, and they will claim they are experts in this matter. These brokers will try to make finding a lender sound like a time-consuming, complicated process. Fraudulent Loan BrokersĪ fraudulent loan broker is very similar to a fraudulent lender by requesting upfront payments. If a lender asks you for money before the loan is funded, don’t give them a dime find a different lender. It will not be a separate payment that you give the lender out of pocket. This fee is likely an origination fee for taking out the loan, and it will either be deducted from the loan amount or consolidated into your monthly payments. However, once you pay these fraudulent fees, they will not issue you a loan, and you will lose the money you paid.Ī legitimate lender may have fees once the loan is issued, but never before. Usually, they will promise a low-interest rate on the loan after they collect fees from you. They may claim that the fees are for credit checks, application fees, processing fees, one-time fees, or anything else they can think of. A scammer will devise any excuse to get money out of you. Upfront PaymentsĪ regulated and legitimate lender will never ask you to pay money upfront. Here is a list of business loan scams to avoid. Business loan scams are happening more frequently, so knowing what to look for is essential. Don’t let your emotions get the best of you because people will try to take advantage of your situation. While this is an exciting step that will make your business dreams a reality, it is important to keep your guard up. The next step on your to-do list is to secure a business loan to get you going. Although you don’t have enough cash reserves to finance this endeavor, that’s okay. Your business plan is complete, and you’ve located the perfect storefront that’s up for lease. Your idea fits your lifestyle and passions, and you can’t wait to get it up and running. You finally came up with that million-dollar business idea! No more nine-to-five shifts, working for a boss you don’t see eye to eye with. ![]()
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