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Avoiding Scams when looking for business funding

Guest post by: Ilya Bodner

Article Overview: There are a handful of companies across the U.S. and in Canada that advertise to offer a business credit building package or are “verified lenders.” Some are legitimate. Some are not. In part, the internet has created a breeding ground for scammers to collect money from people looking to start new businesses, then offer nothing, or very little in exchange. These scams involve collecting an upfront fee in order to get the business owner the funding or credit service that was advertised. Loan scams most commonly require an upfront fee to pay for alleged loan insurance required. Often, this is a scam tactic. In some cases, once the consumer pays the fee, the “company” is never heard from again. In other instances, empty promises are made and the ‘company’ drags the process on and eventually stops corresponding with the client.

Avoiding Scams when looking for business funding

Avoiding Scams when looking for business funding There are a handful of companies across the U.S. and in Canada that advertise to offer a business credit building package or are "verified lenders." Some are legitimate. Some are not. In part, the internet has created a breeding ground for scammers to collect money from people looking to start new businesses, then offer nothing, or very little in exchange. These scams involve collecting an upfront fee in order to get the business owner the funding or credit service that was advertised. Loan scams most commonly require an upfront fee to pay for alleged loan insurance required. Often, this is a scam tactic. In some cases, once the consumer pays the fee, the "company" is never heard from again. In other instances, empty promises are made and the ‘company' drags the process on and eventually stops corresponding with the client.

Buying an existing business

When purchasing an existing business, it is important to realize that you are assuming liability for its future success and its existing assets, liabilities and customer base. It is also important to carefully examine the business's strengths and weaknesses, recent financial statements and financial projections to properly evaluate its potential success and continued profitability. Although it seems that there is a lot to consider when purchasing an existing business, a purchase is usually better than starting a business from scratch. It's often less expensive as well.

Some view a failing business as a greater risk than a thriving one. However, others see this as an opportunity to profit. In many cases, purchasing the business and its existing client base is cheaper and less time consuming than starting a new business and developing everything from scratch. If the buyer has knowledge of the industry, his or her strengths and new vision could take the business to new heights of success and profitability.

Unless a buyer comes across an available business with unusual ease, finding an available business can take lots of time, research and hard work. Sometimes, attorneys and accountants are good resources for businesses that are for sale; however the most traditional sources for business hunting are brokers. Once a business is located, conduct your due diligence and beware that its business image is not always easy to fix. Purchasing an existing business is a great way to get off to a rolling start. With that comes the accessibility of a revolving business credit profile. Trade accounts, revolving lines of credit, and other established relationships could be utilized to enhance the overall business stability.

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Article Tags: business financing, gobignetworkcom, ilya bodner, preventing scams, scam



Related Forum Posts
Internet Users Hbk http://www.internetscamsanonymous.com - Current site for sale of our handbook as a Clickbank product Welcome any and all feedback: Sale page Content Handbook Content Pricing Too Big Considering braking it to 2 volumes: Avoiding Scams Online and Doing Business Online and maybe ad 3rd volume related internet technology Kind of like selling preventive medicine!! Thank you in advance for your interest and comments
Suggestion for an Entrepreneur Looking for Funding - I am new to this forum but have been actively assisting my husband with his cash flow business for a number of months. One issue that I have seen that often occurs from those looking for funding is the lack of paper work that is needed when a funding request is presented. It is so vitally important for an Entrepreneur to have their paper work up to date (business plans, executive summary) before they look for funding. In addition, it is so vitally important to keep in touch with the funding source to expediate their funding project.
Re: Suggestion for an Entrepreneur Looking for Funding - [quote="speechlady"]I am new to this forum but have been actively assisting my husband with his cash flow business for a number of months. One issue that I have seen that often occurs from those looking for funding is the lack of paper work that is needed when a funding request is presented. It is so vitally important for an Entrepreneur to have their paper work up to date (business plans, executive summary) before they look for funding. In addition, it is so vitally important to keep in touch with the funding source to expediate their funding project.[/quote] I agree with speechlady - and would like to add the following: It's important for you and your company to be "capital ready".
Getting Funding - I may have mentioned this previously, but one item that I have seen not to be included when asking for any type of funding is listing assets. Often times, an individual will ask for a type of funding and will neglect to list any assets/collateral that they have to complete the funding process.
Re: On Which Social Media Sites Are You Most Active? - for me some sites are too social and less business, so my focus has been on Apsense and learning my way around here. Both are featured on my blogs most of the others for my groups are shown in alphabetically order for my Internet Scams Anonymous groups


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