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The Business Tradelines Scam |
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| The Business Tradelines Scam |
Those who are perpetuating online scams are experts at taking advantage businesses that are in desperate need of money. Unfortunately, scammers know that the desperation that those in need of money feel is often enough to keep them from doing their homework about a potential help. Small business owners who need collateral for their businesses are prime targets for this type of scam.
The problem that small business owners face is a lack of credit history. They cannot get a loan or line of credit because they do not have a high business credit score, if they have a business credit score at all. Most business lenders who are willing to lend larger amounts are looking for businesses with a business credit score of 80 or more. Getting a business credit score this high takes time, and time is one thing that a young business does not have.
Business tradeline scams understand that the young business’s owner wants to get that high business credit score quickly, without using any personal guarantee to do so. The scammer will advertise a business tradeline proposition that guarantees the business owner a business credit score of 80, almost instantly. The website will have examples of exactly how this works in order to show the validity of the plan. Of course, business tradelines represent a sizeable investment, but the small business owner is already prepared for this, so the investment does not seem to be an insurmountable obstacle. The scammer may even offer a payment plan to make the investment easier to swallow.
The key to this type of scam is that it creates a sense of urgency. The scammers are experts at making the business owner feel like getting a business tradeline is the only way out of the credit situation and that the tradeline needs to be purchased immediately. This is the one thing that sets the scammers apart from the legitimate business tradeline sellers. Those who are going to help the business owner’s credit score are going to be willing to take the time to explain the process, in detail, and provide alternative options when needed.
Once the scammer has hooked the business owner, a payment structure is set up. The scammer will assure the business owner that their company is working hard to improve the business’s credit score. However, after the money has been spent, the scammers disappear. When the business owner checks his credit rating, nothing has changed.
So, if you are a business owner in need of money, how can you avoid these types of scams? The most important thing to do when seeking credit help is take your time. This is difficult, particularly because you need to have money quickly to help your business. However, take the time to research the company you are looking to for help. See if you can find satisfied customers to talk to about the company. If you see any red flags that indicate they could be a scam, take a second look. Do not invest your money unless you are completely confident that you are investing with a legitimate company that can, and will, help you improve your credit. |
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