When you think of a business service you may think of the word “professional”. No where in the word professional would you expect to see the word profess or do you. If you look up the word profess it means to, “claim openly but often falsely that one has (a quality or feeling).” Unfortunately, that is what some professionals do, they profess to have a skill or service yet they only have a skill at taking someone money.
It’s sad but its true, many people are professing to help small businesses access funding but they are only setting that person up to lose their hard earned cash. If you ask the CEO of Jireh Business Consulting Inc Dr. Victoria Brown she will tell you. She has also been a victim of people that scams and fraudulent business transactions. It is difficult to admit that you have been taken advantage of in business. But she and the team at Global Enterprise want you to be aware of a few things to look for in funding scammers.
- No internet history or affiliation with another company with internet history
Unfortunately these funding companies are like pop-up online businesses. They open up shop online hoping that they get a couple hundred victims and then remove their site and start up in another area. They typically do not partner with any other company or take out the time to properly incorporate a business. You can do a search online to see if they have a business name. That business name should be attached to a person that you can find on social media. Any good business professional should not be hiding, they should be visible to the public and potential clients.
- The company should be accessible to answer questions for potential clients
Many of these scam artists do not want to talk a lot. They want to be as invisible as possible to the people. We understand that things can get very busy in the business world. It is important to have processes in place for a call to answer questions. Most companies will have you submit your personal documentation without a conversation about the process. This should be a red flag to run away from these unethical business practices for working with clients for funding process.
- The funding company should require you to complete funding agreements and documentation prior to engaging you in the funding process.
We have worked with many clients that have been engaged by funding groups that begin accessing their funding without requiring any documentation that outlines the expectation of the client. This could go bad really quick. Imagine not having a written expectation of the fees associated with their funding services. Always have a written agreement with the funding company.
- Do not work with any funding company that requires that they gain access to your business funding before you do. You should ALWAYS have full access.
This is the most disgusting transaction we have ever seen happen to someone. In this case a young single female with 780 credit score was working with a funding company that was able to access about $145K worth of funding for her new business. The issue is, she never saw a dime of it. This funding company told her they had to have primary access to her finances and once they collected her fees, they would deposit into her bank account. She went from 780 credit score to 450 within months.