Finding a legit Loan Company

Small business owners and start-ups are increasing by the minute. And so are the new techniques scammers are into to reel the newbie to the trap. Loan scammers target small businesses just as they do individuals. Fraudulent operators might appear legitimate at first glance, presenting slick-looking ads and websites featuring made-up testimonials from happy customers. Axis Capital Group Business Funding in Jakarta reminds us to continuously be cautious of who we deal with and be conscious of the warning signs.

1. Ask the loan company whether any advance payment is required. If the answer is yes, it is a red flag. Legitimate loan companies disclose fees up front and deduct them from the loan amount you receive, rather than demanding money up front. Don’t be fooled by promises that an upfront payment will guarantee you will get a loan.

2. Always consult legal advice for review of your loan agreement. If a loan contract is bogus, a legal professional can detect a scam you might miss. Avoid being rushed. High-pressure tactics and efforts to hurry you into signing a contract are red flags suggesting you are dealing with a loan scammer. Legitimate lenders will not object to a review by your legal counsel and may even suggest that you do so.

3. Perform a search of the Better Business Bureau database. Legitimate business funding should be a member of BBB. When you are not located in the US, in Jakarta, Indonesia, for instance, you can check your local government database available in every locality of the city.

4. Contact your state's attorney general, financial registration agency or banking oversight agency. Loan companies and loan brokers are required by law to register with state agencies in order to do business within a state.

Avoid providing your business or personal bank account information or your Social Security number in advance. You might find your business being billed for fees and you risk having your identity stolen.

Beware of loan company websites that mimic well-known lenders and financial institutions. Do not assume a copycat name implies any association. This is a common tactic used by loan scammers. Finally, don’t assume a professional-appearing website indicates legitimacy. Sophisticated scammers often employ slick websites complete with blogs, informational articles and other features to create the appearance of legitimacy. Always remember that these people have become far more advanced nowadays so you have to be a step ahead of them.