Many small and medium-seized businesses, but also start-ups, are looking for funds for their business. Often it is nearly impossible to get a loan from a bank, because the required collateral is simply not available. This is also a field in which many swindlers make their money. And in most cases, the business that needs funds loose thousands of Dollars without any chance of recovery. Often the agreements are made "perfect" - in favor of the fraudulent intermediary or finance company. Of course, there exist also legitimate finance companies and intermediaries. But for the most people it is nearly impossible to identify who is legitimate and serious - and who not. That is no fault. Who is a specialist in all and everything? Nobody!

First example
Before some years, I met a nice old man in a first class hotel at an airport. He really looked like an absolute serious banker. His company promised to provide loans for viable businesses. I cannot tell you here all details. The story would be too long. So, I try to hold it as short as possible. We came together because some of my clients looked at that time for funds to expand their businesses. All what this "banker" told me within our discussion seemed to be absolute logical, and so he seemed to be a trustworthy business partner - until…

He told me that his company has to prepare first a due diligence report about each loan applicant and the viability of the business etc. So far, that was normal and no problem. Each lender has to know whether a business is not only viable long-term - the business must be profitable enough to cover interest payments and repayment of the loan. Thereafter the nice "banker" explained that my clients had to pay the costs for this report in advance. I was not happy with this, so I jumped over this point first and wanted to see the agreements my clients had to sign.

…I saw the agreement. That was the pitfall. Five pages, many details, complicated and confusing explained in long (legal looking) sentences - but to hold it short, here only the most important. Required advance payment for the due diligence was US $ 35,000. If my clients would have paid, they had lost their money definitively without any chance of recovery. Although the terms "loan" and "financing" were included in the agreement, all was written without any substance and very vague. There was no real obligation that the nice "banker's" company had to provide a loan. The only obligation was to deliver a due diligence report. And believe me, everybody who has paid the fee of US $ 35,000 got an impressing report - but thereafter he heard never again anything from this company.

The tricks of these people were simple, but effective. You need a trustworthy man as "my nice banker" and one or more agreements, which are perfect made to take other peoples money. In most countries a prosecutor or judge would say: "Didn't you read the agreement you signed? You got what you paid for. Nothing more and nothing less." Additional disadvantage; in most cases these so-called "Finance Companies" or intermediaries are working from jurisdictions where it is nearly impossible for someone to recover legally the loss - without first investing much more money for a lawyer etc. - and all that without any guarantee of success.


Second Example
Also some years ago a businessperson from the USA contacted me. She was also looking for funds, but at that time, she already was in serious trouble. She got my name and address from a friend who told her that I could possibly provide a loan for her company. She fell for the fraudulent scheme "Collateral Instruments", and was now looking for a bank to get a loan. As collateral, she offered a prime bank guarantee.

There are companies and intermediaries who say they cannot provide funds, but they will provide a prime bank guarantee or similar instrument, you can use as security for a loan. Of course all these operators know, when someone contact them, that the person who seeks for funding has normally problems to get funds from a bank. Otherwise, why someone should contact these brokers?

Be more than careful, if someone offers you any kind of "financial instruments" to get a loan from a bank. In most cases, you will get worthless and fake, but excellent made, paper. That was happened to the businessperson from the USA. She got a fake bank guarantee from an intermediary operating out of Hong Kong and paid US $ 25,000 broker fee for worthless paper. I could not help her. It was too late, unfortunately. Lastly came out that the intermediary used a Hong Kong address only, but lived not there. She lost her money definitive.

On our Helpful (Free) Resources page is a link to a PDF file called Advance Fee Fraud (Prime Bank Instruments Fraud) written by the Regional Security Manager of a Bank. We did not link direct from this page to the file, because there is no connection between the writer and us - and we don't want give the impression that there is any. It's an interesting 10 page document we recommend to view.


Other Warnings
Some con men in this business use names of well-known and recognized companies. Their brochures and other documents look absolute professional - they are excellent made, but fake. Sometimes, fraudsters also present letters of recommendation from well-known banks, finance companies, and from other reputable corporations. These letters are simple fakes, but again - they are also good made. These documents shall impress the new customer - and too often, it works. Be careful, if people, who claim they can provide funding for your business, show you such references.


Conclusion
Invest some small money (in comparison to thousands of Dollars) BEFORE you pay any advance fees or before you make any deposits (even in escrow accounts) in favor of a broker or finance company. Maybe, the advisor recommends lastly that you should not proceed with the specific financing proposal. Okay, in this case you have to pay the advisor. But this fee is a minor loss in relation to the up-front/advance fee you would have paid. Reduce the risk to loose thousands of Dollars by giving your money a fraudster, who might later make a good living from your (and other peoples') money on a tropical island.


What we can do for You
We will review the documents of the financing proposal (incl. contracts/agreements) for a one time consultation fee (retainer) of only US $ 199. For your money you will get our detailed opinion by email. Please note; we will not say whether the offer is fraudulent or not fraudulent in our opinion. But we will point out to you clearly the pitfalls of the financing proposal.

Contact us by email¹². Absolute confidential handling is assured.

Please note the following, if you want send us an email:
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2. Please include in your mail always your full name, address, phone and fax number. We will not reply to anonymous inquiries.

Thank you for your kind attention!

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