Avoiding Business Loan Scams

Putting up or maintaining a business requires continued flow of cash to sustain all its expenses, cost of expansion, and growth. An entrepreneur will have a time in a business’ lifetime to opt on getting a loan. It can be during the startup of a business to raise capital or during the life of a business where it is time for expansion or growth.

During these moments, a business owner may be too excited for the decision and may rush into getting a loan. But as business owners, we need to be aware of any types of fraud that loans entail. To avoid being caught with these fraudulent acts, here are a few things that needs to be kept in mind.

  1. Upfront Payment of Fees

When a lender requires upfront payment of fees, it’s synonymous to find a more reliable money lender singapore. No lender requires upfront payment prior to the loan amount being released. Lenders who ask for upfront fees is a red flag of trying to collect money out of the business without really having the intention to provide a loan.

  1. Online Application with Lack of Physical Address

There are several lenders out there who would ask to apply online but would no longer require the borrower to go to their office. These online lenders often insist that a visit to their office is not required. Always do a background check on the lender. Knowing about the lender will helps the borrower make the right decision on which lender to partner with. Getting a business loan for the business means looking for the perfect partner who can contribute to the success of the business.

  1. Guaranteed Loans and Cash Advances

Beware of lenders advertising “Guaranteed” loans and Cash Advances as they often entail fraudulent activities. They often offer very high interest rates and hidden fees. These types of lenders try to attract you with avoiding all paperwork and credit check especially when a business owner is excited to start with the business or business expansion.