Avoid Loan Scams and Beware of Phony Lenders

Online, November 4, 2010 (Newswire.com) - Don't put yourself in the pockets of phony lenders and avoid making yourself a victim of loan scams. The Better Business Bureau reported that thousands of individuals and small business owners have lost a total estimated quarter of a million dollars to advance fee loan scams. Desperate individuals and small business owners turn to fraudulent lenders that promise to give them loans with fewer requirements than traditional banks and not counting their credit history.

"Schemes preying on people looking for loans are not new, and they are flourishing in an economy when so many are struggling to get by," said Ken Vander Meeden, President of the BBB Serving Western Michigan. "The complaints received by the BBB are only the vocal few and we know from experience that many more people across the country are falling for this scam every day - just when they can least afford it."

Don't fall into a fraudulent lender's trap and beware of the warning signs of an advance fee loan scam.
1. The lender has a bad reputation or none at all. Research the lender thoroughly; most reliable lenders already have a proven track record. Think twice if you can't find much information about the lender.
2. The lender is not registered in your state to do business. Check with your state financial or banking regulators.
3. The lender asks you to wire money locally or internationally or send a money order before you can receive the loan. This might be for insurance or collateral.

When it comes to business loans, trust a lending company such as PayPoint USA. It's a reliable lending company that has an established track record in providing small business loans and alternative financing to individuals and business owners. Rest assured that you'll not be asked to pay thousands of dollars as upfront money before the approval of your loan.