Most
entrepreneurs and bankrupt business owners view cash-advance loans as their
last resort when they need to pull out their company from a tight spot.
However, the cash-advance loan scams are still alive to this day. Loan scammers
are known to prey on entrepreneurs with a very positive outlook about their
business. Here are a few ways to know if someone is scamming their way into
your finances.
1.
Exclusive
Up-Front Fees
Up-front fees
for no services rendered are already a significant sign about these businesses.
However, if you are gaining about £10-15 million in loans, an up-front fee is
normal. But you are only getting loans within £3 million or lower, and up-front
fees are certainly unnecessary here.
2.
Alternative
Lenders/ Merchants
Merchant cash
advances motivate brokers to gain commissions paid up-front by the borrower. The
legal broker is only motivated by the 20% commission they receive, but to the
borrower’s end, they may or may not receive the third-party financing.
3.
Stuck
Most loan
brokers will give you alternatives, or tell you that you might need time to
think about their financial products. A loan shark will motivate you that they
are the only ones that can help to get out of the fiscal cuff, downplaying or
possibly bypassing the explanation of interest rates and other details of the loan.
