Small Business Loan Scams

Another scam is the bogus equipment loans or lease programs. You may get a letter or phone call saying that you are pre-approved for an equipment loan or lease. All you have to do is send in your

Be especially wary of unsolicited phone calls, emails, or letters from prospective lenders making claims that sound too good to be true. If a prospective lender guarantees a loan without checking your credit or reviewing your business plan, proceed with caution. Also beware of lenders who cater to applicants with bad credit, pressure you to make a decision on the spot, and lenders who request payment by Western Union to foreign addresses.

But even a domestic address is not a guarantee that your money or sensitive data won't leave the country for good. Fly-by-night loan operations routinely set up P.O. boxes or mail drops in the U.S. that are then forwarded to their operations elsewhere. Never send money before you receive a product or service, and remember that no transaction is safe unless you know for sure that you are dealing with a legitimate firm.