5 Ways To Recognize The Business Loan Scammers

Alabaster, AL, 7 Sep 2021, ZEXPRWIRE, If you are looking for personal finance for your business, you will look forward to getting a loan. Not all loan lenders are authentic and genuine as the internet is loaded with scammers, and you need to recognize them before getting scammed.

Even in cryptocurrency trading, you will find various scammers offering business loans. Well, don’t worry at all. We are here to help you out in this regard. Below, we are going to discuss some of the best ways to recognize loan scammers. So, have a look at them!

– The Lender Does Not Inquire About Your Credit History:

Most reputed loan lenders will try to find out the borrower’s credibility and get reports about him from all major credit bureaus, like TransUnion, Experian, and Equifax. They will also try knowing whether you pay bills on time or not so that they can get surety that you will repay the loan.

On the other hand, fraud business loan lenders are not interested in your credit history and timely repayment. They try to give loans to the people who can’t pay them back on time. Thus, they charge penalties on them and get late fee charges and increase their actual receivable amount.

This is why you should be aware that when you look for a reputable lender, all detailing will be done about your credit history to determine your eligibility for the loan. Moreover, you will be inquired about your monthly earnings, electricity bills, and your employment and education, too.

Solution: The best way is to do your research and read the fine prints. Select the lender that is interested in your previous financial status.

– The Lender Isn’t Listed In Your State

Lenders must get registered by the Federal Trade Commission, where they conduct the business of loan lending. You can check the lender’s details on their website. Do check the lender’s registration and confirm in which states he is working legally.

Confirming the registration is the major step to ensure that you get the loan from a reputable company, not from a scammer.

Solution: You can make contact with the Banking Department to verify the lenders in your state.

– The Lender Demands A Prepaid Card

Some of the business loan scammers ask you for gift cards, debit cards, or prepaid debit, claiming that they need it for insurance or any kind of fee. This is a total scam. Legitimate loan lenders charge different fees, but those fees are deducted from the amount of loan offered to you.

Demanding a prepaid card is a complete scam process because these cards are a source of untraceable cash, and you can’t report about it once stolen.

Solution: Never share your untraceable payment methods, like iTunes cards, prepaid cards, gift cards, or even cryptocurrency information while dealing with lenders.

– The Lender Calls, Writes Or Knocks

Well-known business loan lenders advertise their business through mass media. Meanwhile, if you get a phone call, mail, or pamphlet on your door offering you a loan, you are at your own risk. According to the FTC law, it is illegal to offer a loan on call and set their terms and conditions.

Solution: Any certified lender will never call you over the phone. Never mail you and nor will you get any advertising paper on your door from them.

– No Reviews About The Lender’s Finance

If there are no financial opinions available about the lending company, there are chances that it is a fraud lender. Reputed lenders are reviewed by different finance consulting websites, such as Finance Opinions.

Solution: The decent manner to find out about scammers is to look for the reviews about scammers mentioned on the above website. For instance, you can just type on the website and read about the PPP loan scam, Bitcoin scam, Project finance scam, SBA loan scam, or any other scam before applying for a loan with that lender.

Ending Remarks:

By understanding the ways mentioned above, you will be safe while getting business loans from lending companies. So, don’t forget to consider them!

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