American Finasco > Blog > Don’t fall prey to online scams!

There has been a major development in the online alternative lending industry, making it easier to get qualified and approved for business loans, debt resolution, and consolidation. However, this option has also opened doors to online scams, hackers, and fraud. The pandemic has increased this problematic activity making small businesses more vulnerable. Now, thieves are even more prevalent and are often successful with those looking for fast approval or that have been previously denied a loan.

Most scammers will attempt to make contact online through email, websites, and false ads that pop up on a simple Google search. Crooks are becoming progressively tech-savvy. Just because a lender is advertising an offer on a legitimate website doesn’t mean it’s the real thing. Always keep in mind, if it seems too good to be true, it probably is. And….

  1. Don’t release any private information including your social security number, credit card, or banking information, especially to an unsolicited call, email or letter.
  2. Best practice calls for due diligence to avoid getting caught up in a scam. Contact the Better Business Bureau for more information about a company before you commit or give any non-public information.
  3. Google search the phone number. By searching the phone number online, you can find if the number has been listed as a scam. Ask for a callback number if you are unable to see where the call is coming from.

It is most likely a scam if…..

  1. Solicitors ask for money upfront. There is never a reason to pay a lender before approval. Some lenders have origination fees and costs, but these are usually charged at closing. Legitimate fees prior to closing usually occur once your loan is approved but is subject to 3rd party reports you may have to pay for.
  2. Guaranteed approval. No lender can automatically guarantee loan approval. It’s likely a scam if you are not asked to submit any kind of application or have your business/personal credit checked before approval.
  3. The lender contacts you. Unsolicited calls may be a sign of a scam. These calls often involve aggressive tactics offering gifts and using phrases such as “limited time only.” If you feel pressured by a lender, think twice. Learn the terms, and don’t agree to anything you don’t feel comfortable with.

American Finasco can help restructure your debt.  Private Mortgage Financing Partners can refinance your low loan to value commercial real estate and give you cash out to pay off or pay down other debt.  Both options will help decrease your debt-to-income ratio. American Finasco has several options to reduce, consolidate or manage your commercial debt and we often work in conjunction with PMF Partners to provide a joint solution. We provide strategies and take the pressure off business owners who are having a hard time managing their debt. The first step when dealing with creditors is a phone call to American Finasco. We provide our clients with effective solutions for business debt relief. Contact us today to get your business on the right track! Visit Contact Us and complete our Online Form for a free consultation or call (800) 299-2909. We look forward to speaking with you.