We’re continuing on our Holiday Scams & Frauds Series and we’re going to go deeper into yesterday’s topic of business opportunity scams – but this time we’re going corporate.
What’s meant here is that there are scams of all kinds, and some apply to individuals – and some apply to businesses. Businesses get scammed all the time, and honest business people can get caught up in some pretty nasty schemes.
Since we’re in the funding business, let’s go for a funding example. As we know, the holidays are fast approaching and along with the holidays come deadlines… and for some people still looking to find funding for their projects, it can be pretty stressful as banks shut down for the holidays and private lending institutions also take time off. What to do?
This is a perfect opportunity for the more unsavory characters to come out of the shadows and offer instant funding (“holidays-schmolidays!”) for your project … so long as you pay this itty-bitty fee here, and maybe this other small fee there. Sound familiar?
We’ve talked about this in our Fees article and our Business Opportunity Scam article. You are promised the moon by generally some kind of broker, who will offer you instant access to money (or financing for your project), and all you have to do is pay upfront fee ‘x’ and upfront fee ‘y’.
Over the years, we’ve had countless of our clients who have told us such similar situations that they’ve gone through, where they were promised instant and guaranteed funding so long as they paid upfront.
Our advice for such situations, aside from that given in our previous article, is to ask yourself this: if it takes 30-45 days to get a credit check from a bank in order to obtain a credit card or a loan, how can you possibly obtain funding in the hundreds of thousands and even millions in just a few short days? It just doesn’t make sense, it is not a reasonable proposition – and should someone offer this to you, no matter how much you need or want to get your project funded, we can guarantee you that this can lead to nothing good. This is a popular scam in the funding world and you will be conned out of your precious resources.
Stay tuned to find out other holiday scams and frauds and how to steer clear of them – and actually enjoy your holidays, worry-free.
Always make sure that you make an informed decision in all cases,
All the Best,