Small Business Loan Scams

Before you do business with any prospective lender, check with the Better Business Bureau or state attorney general's office to see if any complaints have been filed against them. Request the lender’s financial statements, specifically assets and capital. Take advantage of local resources like the Small Business Development Corporation (SBDC), small business clubs, networking, and minority business groups for recommendations of trustworthy lenders.

The reality is that many entrepreneurs have less than perfect credit. If you are among them, do not let your guard down because you think your options are limited. While having poor personal credit presents real challenges, there are many legitimate programs that loan to businesses and business owners with less-than-perfect credit. You just have to devote some time to researching lenders who are friendlier to applicants with some flaws in their credit reports.