Getting your idea into action often takes up two of the most important resources to make sure it becomes a profiting business – time and money. Like anything that needs growth, giving it time and attention is the best way to nurture a growing business. This is where your you are able to make decisions on what steps to take and what direction your business is going to venture on.
The second most important resource is money. With everything coming with a cost today, money place a crucial role in nurturing and growing your business. Sometimes, the right time isn’t always the time when we have enough cash to fund the startup. Getting a business loan is often the best solution but make sure that you watch out for these business loan scams.
- Upfront Fee Payments
A common loan scam that is often masked with very low interest rates, nearly zero, is applied to the loan principal. These loan sharks then require you to pay upfront fees for processing, application, and other services that were made during the application. These upfront fees are often high enough exceeding the actual interest rates if the loan was made through a licensed lender. Remember that licensed lenders have to follow standard regulations when processing a business loan.
- Credit Repair
There are several lenders who take advantage of businesses who are unable to make a loan because of poor credit score. These lenders are supposedly helping the business owner to repair and build their credit score by granting a pre-approved loan. The catch? There isn’t any repair that is happening. Most probably the lender isn’t a licensed lender and is operating outside the regulations of the government. In these cases, you will be paying the lender amortizations payments with high interest rates. In effect, you are just helping fatten your lenders wallet without really getting the benefit of repair in your credit score.
- Business Loan Assistance
In some cases, there are business loans that seem to be to tedious to undergo and a business loan assistance is being offered, of course as a premium service. Like the fraud on upfront fees, these business loan assistance is often charged with a fee. Don’t fall for these tricks as all the information you need for applying a loan should be clear under a licensed lender’s requirements.