Tips for avoiding business financing scams – Part 1

It goes without saying that if a business finance idea sounds too good to be true then it most certainly always is.

Types of business finance scams include joining a database scheme that advertises a network of finance providers at a monthly or on a one-off joining fee. These databases are phoney in nature and in practise they will be details of loan providers who are likely to charge extortionately high rates of interest and money facilities.

Another area where serious financial transactional fraud is on advertising on websites and to a lesser extent in newspaper adverts where a promise of money has been stated and the reader of the advert finds out the necessary information from this bogus advertiser and is asked to hand over money. The most common methods of transaction will be using paypal or western union transactions. Western Union is a instant form of money transfer with no recourse or payment protection after the payment deal has been authorised and sent. People sending money via western union are likely to get conned completely and in identifying the whereabouts of the mastermind is absolutely impossible. The best way is to ignore completely these types of unscrupulous forms of

Business scams also can involve loan shark type finance where the business borrows money from an unlicenced person and is then hounded and forced to pay regular repayments and upon failure to do so threatening calls for repayment are made, and also the business finance provider will ask the company to pay penalty charges which make the cost of finance almost unbearable and unaffordable. This method also plays a part in consumer credit finance which is equally bad.

The terms of business between suppliers might also involve some crazy terms and conditions that come with signing paperwork. Examples might include additional interest or unknown arrangement fees.

Postal delivery of good that were not ordered, and along with the parcel is a letter of payment demand along with a premium rate phone number to call and dial in the case of responding to enquiries. The premium rate costs x number of dollars per minute. The best way to avoid this is to notify the postal services, to hand over the parcel to the police and make them informed about this situation and ignore further postal service deliveries of a similar nature.

Where people are telephoned out of the blue by criminal saying that they owe money and that interest charges are going to be levied on their accounts is another easy way of a persons identification and bank details being given to these mastermind crooks. Again the best way is to ignore these telephone calls and put the phone down immediately. Perhaps if they have left their telephone number would be to make a note of the number if given and to then notify the authorities. The bank themselves do not make phone calls to customers without a good reason.

Electronic mail types of business finance scams will be where the message is offering business finance and the e-mail is asking for personal identification of details to be submitted via a return e-mail. So many people and businesses have fallen prey to this scam, where most certainly all they had to do would be to place the e-mail in the spam tray.