17 Sep Business Loan Recovery: Common Red Flags to Avoid
It’s pretty standard for businesses to take out business loans to start their business, float themselves through a challenging situation, or expand and grow. Unfortunately, however, the money lending business is also the ideal place for scammers.
These scammers will try to take advantage of people they don’t know, steal money from a business, and never actually deliver on their promises. Scams can cost your company a lot of money and time, so it’s important to know what to watch out for before taking any action. In this blog post, we will discuss some red flags to look out for that can indicate you’re part of a scam.
- The Lender Contacted Your Company First
Remember, loan companies will not call you to give you a loan. That’s not how the process works. Instead, your company will have to reach out to apply for the loan. Now, that doesn’t mean that larger companies won’t contact clients about upgrading services or other products available within their company, so it’s essential to be aware of who’s calling and what they’re offering. If it sounds too good of a deal, hang up and do some research first.
- You Cannot Contact Them Yourself
Most scam companies will not allow you to contact them directly. This should be a red flag for your business because if they’re the real deal, why wouldn’t they want to answer questions? Legitimate companies will provide various ways to contact them, such as a telephone number, e-mail, and online chat through their website to answer any questions you may have. If you find it increasingly hard to contact a company and only hear from them when they call you, this is likely a scam.
- Your Required To Pay A Fee Upfront
Another big sign that something is off about a loan company is when they require payment from your company upfront. They may claim that this is to secure a lower interest rate or to guarantee your loan. However, legitimate companies will never require you to pay an upfront fee for a loan, especially before you even have the money in your hands. If they insist on upfront payment, make sure to do some research first about this company and its reputation before spending any of your money.
- You Are Required To Give Your Personal Information
Your personal information is something that should be given out with caution because it can be used against you if a scammer gets access to it as they can use it fraudulently. Legitimate companies request all necessary information through the application process but will not keep contacting you until after you’ve provided them with more than what’s required by law (name, address, social security number). This type of scamming tactic may take place over a phone call, so always be cautious about who you’re speaking with.
- You’re Guaranteed Approval For The Loan Without Applying
Now, you may have heard about some loans that come with instant approval for everyone. They are called ‘pre-approved or ‘pre-qualified. However, this is not something all companies offer, so it’s essential to be cautious of who provides this service and why they’re using it as a selling point on their website or over the phone. If someone guarantees loan approval without even applying, hang up and find another company because the chances are high that there’s probably an issue in how legitimate this lender actually is.
- No Online Reviews Or Information Can Be Found About
If you’re wondering how legitimate a company is and what their reputation is like, you can read up on them online. This could be through Google reviews, Yelp, BBB reports (Better Business Bureau), etc. If the only information about this business that comes up are ads or websites that seem scam-like, then there’s likely an issue. It either means that they don’t actually exist, or they’ve had such negative reviews that they’ve changed their name.
- The Terms Or Deal Sounds Too Good To be True
When it comes to business loans, you want a company that offers reasonable and fair rates for your type of loan. Suppose the deal sounds too good to be true. In that case, the chances are high that there are some hidden conditions attached or something shady going on with this lender, such as charging excessive fees or having ridiculous interest rates.
Keep in mind that plenty of reputable lenders are out there who offer excellent services to small businesses, so don’t get too discouraged by all the scammy ones! However, when looking for your next business loan, make sure you know exactly what red flags to be on the lookout for and how they can affect your company or future success. Also, remember to check online reviews before committing yourself to any lender, no matter how appealing their deals may seem at first glance.
Use Ultrarecovery for Your Business Loan Recovery
If you find yourself in a situation where you’re dealing with a shady lender and are unable to recover your business loans lost to scammers, then it might be time to use a professional at Ultrarecovery. Our team is full of experts who can ensure that your lost funds are recovered and that you’re not in the hole for thousand of dollars.
Throughout our process, we’ll use our intelligence-gathering team to find your lost funds and ensure you’re not losing in the process. With our technical team of forensic experts and lawyers, you can be sure that we’ll find the best strategy to solve your case.
We’re here for you every step of the way at Ultrarecovery, from beginning to end, to ensure that you know you’ve got someone on your side and will be notified as soon as we learn anything new about your case. You can trust that your case is receiving the attention and care it deserves. If you discover that you’ve been a victim of fraud, you’ll want to act right away to reclaim your money back by contacting us today.