Business loan customer fraud

One of the ways that lenders often commit fraud is against many business loan customers. If a customer has taken a business loan, one of the popular ways that lenders like to commit fraud against them is to target companies that have either a high inventory amount, or a high property asset inventory.

The easiest way to take as much from a customer who has taken a business loan as possible is to ensure that they default on their loan. If they default on their loan because the amount that they must repay is too high, then the customer will lose all inventory or properties that they loan is secured against. This way, a loan that is only worth £100,000 now becomes a loan that is worth close to a million depending on the amount of your inventory or property assets.

The biggest way that lenders commit fraud to make this instance happen is to borrow loans for a higher amount than they should have been borrowed for to begin with. If a company is only making £10,000 annually in profit, their business loan total should not be more than £2,000. There is supposed to be a scale of affordability that is already corrected for business loans, as it helps to stop a default in payment. But many banks and lenders ignore this if they believe that the company would default on their loan repayment, which is why they sometimes accept companies for loans that are high above their real affordability.

The next time you look for a business loan you should use a more trustworthy company such as businessloansoptions.co.uk as they are a comparison company rather than a lender. These comparison companies or referral companies usually calculate your total income to find out how affordable your loan really is, and then provides you with lenders that match. This way you can safely look for companies to take loans with and invest your borrowed amounts.