Loan Scams are Common! Know which ones are Fake? – Know Now!

If you are indeed desperate for a cash advance in Utah for business support and funding, loans scams may actually prey on your requirement without you having the slightest doubt. What are these scams? Well, a loan scam is a way in which fraudsters would obtain your personal details like social security number and bank account identification and perhaps even extract some processing money from you without actually despatching the loan. 

Luckily, however, most of these loan scams follow a similar pattern and are therefore easy to spot. We look at some pointers that scream “fraud” while seeking funding for business. Here are some:

  1. You Get Unsolicited Calls: If you have applied for a loan, you may get calls from prospective lenders. These would be pre-screened and based on your personal credit history. However, if you are getting unwanted calls on your phone or random emails offering you loans, you need to be alert. These are only aimed at extracting your personal information which will then be used for cash pilferage from bank accounts and other forms of fraudulent activity. One very simple way of distinguishing a legitimate lender for business funding in Utah from a scammer is by their pitch. If the lender guarantees instant approval, is consistently avoiding questions on fees, and makes claims that credit scores are irrelevant, it is likely to be a fraud. 
  2. Timelines appear too stringent: Most reputable lenders have consistent offerings that are based on hard facts. Your creditworthiness, prevailing rates for personal loans, and other details will be factored in when making offers. Loans that are typically offered for a very short period of time or seek urgent applications, almost never live up to their promise. Whereas deals concerning fees are common, rebates on interest rates should always be dealt with a fair amount of suspicion. Therefore, if there is a loan offered at a low-interest rate and is available only for a short period of time, it is likely to be a scam. 
  3. Approval is guaranteed even before you know it: Be it accounting funding or working capital funding, borrowers are always looking for quick approvals. However, if the approval is way too quick and not based on any facts and conditions, it is likely too good to be true. Blanket promises that ensure approval are to be dealt with extreme suspicion. 
  4. Fees are Demanded Upfront: When the loan processing fee is charged upfront, you should know something is wrong. Typically, the processing fee is paid at closing. In some cases, the amount charged for processing is deducted from the amount paid as a loan. No lender will charge a processing fee at the very outset unless they have no intention of paying you the loan at all. They demand a fee at the start simply because they do not intend to pay you the loan. 

You may be looking for “business funding near me” that guarantees funds fast and it is entirely achievable without falling prey to any kind of scam. Look for lenders that are safe and secure and are willing to offer business funding with minimal procedural hassles. 

Leave a Comment