Getting approved for business loans in NYC can be quite difficult for small, new, and struggling businesses looking for funding. Banks and lenders usually have a strict screening process that only stable companies can pass. The prevalent need for funding facilitates internet scammers who make money off of unsuspending small business runners.
Here, we shed some light on some of the biggest red flags to look for to identify a business loan scam in NYC. Let’s get started.
Getting approved for business loans in NYC can be quite difficult for small, new, and struggling businesses looking for funding. Banks and lenders usually have a strict screening process that only stable companies can pass. The prevalent need for funding facilitates internet scammers who make money off of unsuspending small business runners.
Here, we shed some light on some of the biggest red flags to look for to identify a business loan scam in NYC. Let’s get started.
1- They’re Asking for Upfront Fees
Making an irresistible offer and asking for a small amount of money is the oldest trick in the book of internet scamming. In business loan scams, they mask this money as “processing fees” or “application fees.” Trust us; once you transfer the money, you’ll never hear from them again.
Loan services companies in NYC, such as Whitstone Fund, refer you to verified legitimate lenders they routinely work with. There are also no processing or application fees when you’re working with Whitestone Fund—making the process easier and more reliable for you.
2- They Approached You On Social Media or via Email
If you have a business page on social media, you may receive offers from “peer lenders” offering something along the lines of $100,000 in funding even if you have a low credit score. While legitimate peer-to-peer lenders exist, they’ll never approach you like this. You may also receive emails with such offers if you’ve given your business email address to untrustworthy websites. Do not respond.
3- They Don’t Care About Your Credit Score
Every legitimate lender has a minimum credit score requirement. Lenders with high credit requirements tend to offer lower interest rates than others. While they are lenders who’ll give you a loan for a score of 500, almost every legitimate lender cares about your business credit score. It’s the same for your revenue and your time in business. Offers that claim not to care about these things are most likely scams just trying to rush the payday.
4- You Can’t Find Much Information
Scammers can’t easily make legitimate-looking business profiles on Google, BBB, and other platforms. On the other hand, legitimate lenders with a good reputation often direct you to their business profiles for social proof. If you can’t find much information about the company or if you can’t verify that the offer is actually from the company it says it’s from, it’s likely a scam.
5- They Pressure You To Apply ASAP
Not every lender is right for every business—and lenders acknowledge this. Legitimate lenders have financial products marketed to very specific kinds of businesses. A legitimate lender would never pressure you into applying for a loan and paying a fee asap. That’s something scammers do.
Whitestone Fund considers your business financials and refers you to a business loan agent in NYC suited to you. We have an acceptance ratio of 95% for our NYC business loan agent referral services. Contact us to get business loan services from legitimate lenders in NYC.
