5 Ways to Avoid Business Loan Scams

Once you have made that decision to expand your business, funding is the next important thing you have to find. There are two ways of raising your funds for a business expansion. By offering your business to partners in exchange for funding or getting a business loan. Most business owners, especially those who have been operating their business on their own, opt for a business loan.

Getting a business loan often leaves the business owner full control over business operations and decision making. Unlike getting funding from partners, they are given a portion or stake over the business which gives them the authority to make decisions. But getting a business loan doesn’t come without a caveat. One of these things to watch out for is falling into the trap of business loan scams. Here are a few tips you can use to avoid falling into these fraudulent cases.

  1. Find out the legitimacy of the business loan lender. One best way, even before contacting the lender to inquire, is to make sure that you research about them. Learn how long have they been providing the business and who are the possible and existing clients that they may have interacted with.
  2. Ensure that agents and representatives are employed and connected with the lender. If you choose to transact with an agent or representative, it is equally important to research about them too. Make sure that they are connected with the lender to avoid getting scammed and losing a large sum of money.
  3. Make sure that online transactions are encrypted and legitimate. With technology being part of our everyday living and business transactions, there are lenders who allow application through online means. It is necessary to ensure that these online pages are legitimate online pages operated by legitimate lenders.
  4. Go for well researched and referred lenders. If you have business partners, colleagues, or even suppliers who recommend a lender, it would be worth checking it out. Always remember that as human beings, we will never refer someone with whom we have bad experiences with. Ask about the service and the experiences they had with the lender.
  5. Avoid deals that are too good to be true. If the deal being offered is too good to be true, it must be.

Business loans are great way to generate cash. But always be careful when transacting with lenders. Find a lender who have all the business operation requirements and tenure in providing the business.

/ Loan Blog

5 Ways to Steer Clear of Personal Loan Scams

Personal loans are one of the great ways of generating cash for any type of expenditures. Personal loans do not require the proceeds to be spent on a specific type of expenditures. Unlike mortgage or auto loans, a personal loan can be used with any type of expenditures within the borrower’s discretion. Because of the increasing demand on personal loans, it has become one of the most lucrative businesses that seemed to have branched out from banks.

There are now a large number of financial institutions that are not operating as a bank that offer personal loans. These are the institutions a borrower must be careful with. Unfortunately, there are still those who operate a financial institution without the intention of helping but aim to scam clients instead. Here are 5 ways that you can do to steer clear of personal loan scams.

  1. Make sure you are transacting with a legit financial institution. Business are required to show their permits to operate a business. You will need make sure that your lender has the necessary business permits that allow them to transact as a financial institution.
  2. Avoid transacting with “representatives” or “agents” outside the office. Always make sure that you at least meet your agent or representative in the office. This will give you an idea and allow you to confirm that the agent is indeed connected with the financial institution.
  3. Make sure you confirm legitimacy of online transactions. With the technology advancing and branching out to almost every industry, transacting online is becoming more inevitable through the days. It is not bad and should be completely avoided. What you need is to make sure that your online transactions are valid.
  4. Make sure the financial institution has an office location. In connection to having your transactions online, knowing their office location will allow you a place you can visit in times of problems with your online transaction.
  5. Read reviews and research about the financial institution. It is very important that you identify a the legitimacy of the financial institution or agents you are transacting with. Researching about them will definitely eliminate the risk of getting into a scam.

Personal loans are great ways to increase or generate the cash you may need. It is also the best type of loan that will allow you flexibility and diversity in spending the proceeds. These tips can help you avoid scams and maximizing the benefit of getting a personal loan.

/ Loan Blog

How To Avoid Payday Loans Leading to Bad Debts

Have you ever found yourself looking for ways to generate extra cash? This need of cash may be used for emergency expenses such as medical, car or home repairs, or even for making it last you through until the next payday because of some extra expenses that you had to cover for the month.

Payday loans offer one of the best and fastest way of generating these emergency funds. But like any other loan, losing sight of managing your borrowings can lead to bad debt. Here are a few tips how you can maximize your payday loan without leading yourself in a situation where you have to pay for bad debt.

  1. Ensure that you borrow the amount you actually need. Do not borrow more than what you need. This will cause you to spend the excess money unnecessarily and increase your payables which might become more challenging when the due date arrives.
  2. Borrow what you can pay. Always do forecast planning on your expenditures for the next month to ensure that you know how much you can set aside for the payday loan. Borrowing more than what you can pay will only cause you to revolve your loans and create a bigger debt.
  3. Know where you will get funds to pay for the loan. Although the basis of your loan approval is having a steady source of income from salary, you need to make sure that your salary can accommodate the amount you are borrowing. You have to make sure that there is no need to revolve the debt.
  4. Identify loans that can offer the best interest. With all types of loans, there are interest payments that need to be paid by the borrower. Doing research and identifying which lender can offer the best and lowest interest can do great help.
  5. Find a lender who offers the best deals. There may be times where interest is not only the selling point a lender can offer. A lender can provide a good customer service that will help the borrower in cases the borrower encounters any problems.

Payday loans are ones of the easiest loans to avail of. With proper management and making informed decisions, you maximize the benefit of availing the loan. Payday loans are not the cause of bad debts, mismanaged finances and uninformed decision does.

/ Loan Blog