As many small businesses are recovering from the pandemic, scammers and predatory lenders are taking advantage of businesses searching for funding. As the Paycheck Protection Program is over and approvals for bank loans has dropped by 20%, this gap in funding is making business owners a bigger target to the vultures masquerading as legitimate funding companies.
Remember, “If something sounds too good to be true, it probably is.” So, protect yourself from excessive interest rates and worse with these four suggestions.
- Be cautious of quick funding. Even if your situation is desperate, proceed slowly with an online lender that is rushing you to take their money today. Be sure you understand all their terms, have your lawyer or accountant review the terms before you agree to take their money. If you cannot see the terms and rates before you are funded – run!
- Don’t pay a fee to apply for a loan. One of the biggest red flags is charging an application or processing fee for a loan or a grant. Reputable financing companies never charge companies to process an application.
- Consider all your financing options. Business owners have more funding options now than ever before. There are now community lenders, nonprofit lenders and alternative lenders that specialize in funding companies that don’t qualify for bank lending.
- Take advantage of your team. Consult your account, lawyer, and other financial experts to help you decide which financing offer is going to best for your company.
American Receivable is a 43 year old invoice factoring company. ARC remains owned and operated by the original founders. Prospects never pay an application fee and are qualified on the credit strength of their customers, not their credit. Unlike bank owned factoring companies that makes their decision based on your personal credit score and then sets a credit limit on your business. American Receivable’s longevity is based on our client’s success.
Schedule a conversation to learn more how American Receivable will provide the cash you need to thrive.
Schedule a time to chat: https://americanreceivable.com/schedule-an-appointment /
Jack Stieber | jack@americanreceivable.com | 1-800-297-6652
Brad Gurney | brad@americanreceivable.com | 972-404-4726
