Do
you need money to make money? Wait! Where can you get reliable business funding
such as high risk business loans? How to find out whether the potential loan
company is legitimate? No worries! Just read this article to figure that out.
Alterative Funding:
High Risk Business Loans
Did
you know that in 2018 the average loan amount given to U.S. businesses accounted
for $663.000? When it comes to alternative lenders, the same amount varies from
$50.000 to $80.000.By the way, regional banks had higher average loan amounts
as compared to a number of national ones.
Today,
online lenders or alternative funding providers are witnessing impressive
growth. In fact, they double their market share almost every 9 months. In
recent years, small business owners and individuals have been going for this new
sector more favorably than for secured loans from traditional banks.
Alternative
online lenders are a preferred option especially for hard-to-approve merchants
who get refusal from traditional banks. So, alternative finance providers have
opened up new doors for bad credit or high risk merchants who need access to
working capital. Only, it’s too important to find a reputable online lender in
the field.
With
a truly reliable and experienced alternative online lender that specializes in your
industry, you can get high risk
business loans easily and at the cheapest rates.
Loan Company:
Legitimate or Not
Yes,
bad credit business loans do exist. Only, you should avoid scammers offering
this type of financing. Just follow these points to know how you can avoid
them:
·
Find Them on the Web
Check
for online presence and see whether the company has a physical address. The
absence of this info points to a potential scam.
·
Turn to the Better Business Bureau
Find
out what info the BBB website provides on the lender.
·
Make Sure to Feel Comfortable About the
Process
Scammers
have overly aggressive or manipulative contact with borrowers.
·
Contact Your State’s Attorney General Office
If
you find no record of the lender, the latter isn’t legitimate.
·
See Whether They Ask You to Pay in
Advance
Scammers
ask merchants to pay them in advance. So, check the payment requirements.
·
Find Out if They Ask for Your
Business/Personal Bank Info
Legitimate
lenders don’t ask for online banking login information or for Social Security
Number.
·
See Whether the Loan Offer Is Complete
or Not
If
your offer is incomplete and is with spelling/grammar errors or otherwise, this
is a serious sign.
·
Find Out if Your Offer Expires Soon
If
this is the case with you, they just want you to act now. Such an “urgent offer”
speaks of a scam.
·
Is There Any Payment in the Form of a Gift
Card?
Legitimate
lenders don’t ask you to pay with a gift card.
·
Get a Professional Review
Legitimate
loan companies don’t mind your taking the loan agreement to a lawyer for
review.
As
you see, there’re several points you should pay attention to when applying for
high risk business funding. Otherwise, you may end up with a scam. So, just
take the time to consider your funding options and shop around to find the best
deal.
Author
Bio:As
the FAM account executive, Michael Hollis has funded millions by using high
risk business loans solutions. His experience and extensive knowledge of the
industry has made him finance expert at First American Merchant.