Having a business loan may seem necessary if you're trying to expand your company. For whatever reasons you're getting a loan, you should be careful where you apply for one. Even if loans and borrowing money from licensed moneylenders have been a thing since decades ago, people still get scammed and cheated on. In Singapore, you can search up the list of legitimate money lending agencies to know which licensed money lender are you going to apply to. 

Although bad credit business loans are available, there are plenty of scammers out there looking to take advantage of distressed business owners. As a consequence, it's important to understand how to determine if a lending firm is legal. Here is a reliable guideline to assist you in determining legitimate money lenders:

Upfront Fees are Questionable

This factor is probably one of the most straightforward approaches to determine whether or not a lending firm is legal. A reputable lending firm would never require you to pay a fee or make a request until you collect your loan, but if they do, you can stop communicating with them. Don't be fooled into thinking that making an initial deposit would guarantee you a loan.

If it's "Too Good to be True", Start Doubting.

When it comes to having a loan, we all want the best offer possible, but we still need to be rational. You should be cautious if a lending firm promises you a fantastic offer that is cheaper than anywhere else. You may have known of the offers, and the company would have had more coverage if a company would genuinely deliver deals as well as they think they can. If a fake money lending agency wants to get an individual's attention, they'll ensure that they will offer the most convenient plans to them. If you start to notice that the loan deal is becoming TOO convenient for you, you should start asking questions. 

Ensure the company has a Physical Office

If the lending firm you're working with has an office, staff, and a customer service phone number, you can be assured that they're a legitimate money lending agency. If the organization has no physical location, no proof of actual staff, and no phone number, it would probably be best that you inquire in another company because there is no way to verify that they are a legitimate money lending company. Although there are several legal online-only lending firms, you must exercise caution in this area because it can be challenging to tell which ones are legitimate and which are not.

Research About the Company

When you're struggling to figure out whether a lending firm is real, the first thing you can do is to research the money lending agency. A decent way to start is by searching for the business name on Google. This will provide a wealth of knowledge, not just about the business itself but also about what people are talking about it. However, simply because they have a website and testimonials or reviews does not guarantee that they are genuine.

These testimonials are quite easy to write up. That's why you should be careful with that. It is best to tread carefully and follow the advice of others whether you see posts worrying, wondering, or telling that they are a scam. If they have a website and you're still not sure if you can trust them, you can look up their name and websites. Besides, the internet has pretty much everything. Better yet, call up a specialist so they can inform you what you're really dealing with.

FAQs About Loan Companies

In some cases, there are loan scam agencies that are still able to get away with their naughty tricks. If you're planning to consult with a specialist, better prepare some questions! Here's what you can ask them:

Is it normal for the loan company to ask for access to my bank account?

In certain situations, a lender will request your bank account details in order to determine where the loan funds should be sent after your application has been accepted. It is, however, unusual for a bank to request your online banking login details in order to validate your account. If this occurs, it's likely that a scammer is attempting to gain access to your account in order to make a withdrawal or conversion to their own. Asking about your bank details immediately a red flag, and you should cut them off at that point.

Do loan companies normally ask for upfront fees?

Like what we've mentioned earlier, legitimate money lenders do not ask their clients to pay an upfront fee before they can obtain their loan. For the processing of your loan, certain lenders charge an origination fee. This fee, on the other hand, is usually deducted from your loan disbursement. Before you can get access to your assets, no legal lender would require you to pay them the fee upfront. If they start to ask you to pay unnecessary fees, then it's best that you look for another money lending company.