Business Loans

5 Infallible Tips For Not Falling Into Business Loan Scam

Faced with different needs , applying for a line of credit for your company may be the best and most indicated choice. However, in case you do not make the right option, you may suffer a business loan scam. an elucidation on

This type of trick happens when you apply for a claim to a supposed company or representative that requires, in return, that an amount be deposited in advance. After that, the scammer disappears with your money (and you do not receive the amount equivalent to the loan).

To stay on top of this scam, keep following our post and check out 5 tips to quickly recognize malicious proposals. Check out!

How not to fall into the blow of business lending?

Make sure the company exists

To avoid being cheated, you need to be very cautious when choosing an entity to get the loan. Here, all care is little. Therefore, before considering a company to apply for credit, verify that the financial institution is authorized by the Central Bank.

Doing this query is simple. Just go to the Central Bank website and look for the ” Find an Institution ” option. You can also reach us by phone at the number 145. You will need to have in hand some information and data about the company in a short time, to discover its origin and regulation.

In the case of some digital credit companies, it is only possible to find the name of the financial institution responsible for making the credit and investment operations carried out. To verify BizCapital, for example, one should look for the name of Socinal SA – Crédito, Financiamento e Investimento , a partner institution that has been operating in the market for more than a decade.

Know the rates and terms

Loan Rates

If you want to get away from a blow and at the same time not be surprised by abusive agreements and clauses, it is your duty – and right! – read and understand each line written in the contract.

Therefore, be aware of the fees charged, the existence of additional charges and terms that are not well explained or that are not in accordance with the law. Also evaluate the CET (Total Cost Effective), since this is the parameter that must be considered to know if your firm is able to pay off the debt.

Serious financial entities do not commit a very high percentage of your company’s income to repay the loan. Institutions that act in bad faith do not respect the limits of the CET. Therefore, read and reread the contract as often as necessary.

The basic parts that should be included in a business loan agreement are:

  • qualification: your personal information;
  • creditor: name of the company that is making available the credit or data of the correspondent bank;
  • promise of payment: commitment to comply with loan payments;
  • characteristics of the credit operation: total credit, IOF, interest, tariffs, CET, net credit amount, annual rate and coefficient for calculating the definition of the value of the benefits;
  • form of payment: value, quantity, form of payment and maturity date of the parcels;
  • data of the correspondent: address, CNPJ, corporate name and other information of the financial institution releasing the credit;
  • charges: full description of the percentage of interest incident on the occurrence of delays in the payment of installments;
  • Release form: Your company’s bank account number to deposit the credit amount.

In addition to thoroughly reviewing the contract, keep any advertising or advertising you find, either on the institution’s website or in information leaflets. This is a great way to prove the conditions that have been offered. In addition, request an e-mail copy of the entire contract.

Search for company history

When considering an institution to apply for your business credit , check to see if it has cases of serious complaints or even indications from clients who have already been injured or have suffered loan scams.

At this stage, the indicated thing is to do searches on the internet. Searchers such as Google, social networks and consumer protection sites Reclame Here and Procon are great tools to find the institution’s homepage, complaints, reviews and customer comments.

When doing a search on the company’s website, look for a green lock. This is the security certificate token that indicates that the platform user has an encryption system so that third parties do not have access to your information.

Never make deposits in advance


When the company asks for early deposit, beware! This is a big sign that you are about to take a hit. Always be wary of the insistence and pressure to make this transfer and never give in. It is unusual for reputable financial institutions to work with advance deposits to clear their credit.

In addition to not making value-for-money transactions, you should not provide your documentation before deciding to complete the business loan.

The most common way of scams and injuries in malicious people is to ask for a lump sum before you contract and after that, disappear with your money without leaving information. Always protect yourself and distrust!

Do not make deposits on accounts of individuals

Another sign of corporate loan scam is when the company representative requests that the agreed amount be deposited in a personal bank account. This may mean that the person or company is not in compliance with the law or has something to hide.

Thus, any and all type of financial transaction or process involving a business loan on behalf of a financial institution should be done in the account of the entity. Always check your bank account and make sure that the person who is taking care of your contract actually represents the institution in which you claim to work.

Although there are misleads that apply the corporate loan scam, online credit, when done in conjunction with reputable, reputable and law-abiding companies, is a great alternative for your company, whether to bet on improvements or to get out of financial crises .


Private loan

Cashbuddy is the lender who offers clear and simple solutions when you are in need of a smaller private loan. They review your future ability to pay, which means that payment notes are not a problem to be granted a loan of between 5000 and 25,000 SEK. If you manage your repayments on an ongoing basis, there is also a good chance of increasing the loan to a total of SEK 45,000. The maturity is between 1 and 5 years with a fixed interest rate which is the same for all customers.

Cashbuddy blank loans, SEK 5000 – SEK 25,000:

  • Private loans with fixed costs
  • Loan despite payment remarks
  • Long term, up to 5 years
  • Chance of increased loans up to SEK 45,000

Payment and credit check

Processing takes place on an ongoing basis during weekdays between 08 – 17 (it is possible to submit your application 24 hours a day). To speed up the process, you can sign directly with BankID or e-identification. In some cases, the application may need to be supplemented with documents, otherwise payment will be made within 1-3 banking days – to all Swedish banks – from the time of approval.

Cashbuddy makes a credit check through UC on all customers. However, past debts and payment remarks are not a problem, but Cashbuddy primarily looks at your current financial situation. In order to be approved, it is necessary to have a fixed income in the form of a pension, temporary unemployment insurance or work.

Interest and costs

Interest and costs at Cashbuddy

The only cost that is added when a loan has been granted with Cashbuddy is the nominal annual interest rate of 26.05%, which means that the effective annual interest rate will be 29.4% independent amount or maturity. All costs are fixed so you know exactly how much you need to repay each month. Refunds are automatically made via direct debit on the 27th of each month, so that you also avoid avia tax. Monthly fee, set-up fee and delay fee are SEK 0 each. Everyone is entitled to 2 months free of charge per year, only after they have been repaid for at least 4 months.

Non-Bank Loans

Non-bank loans against collateral


A loan for a flat , house or plot requires a full set of documentation for the purposes of analysis and preparation of a suitable loan offer for you. On its basis, we are able to thoroughly examine the legal status of real estate, which allows you to present in the shortest possible period of 24 hours, the assumptions of the loan agreement for the client. Based on the parameters resulting from the documentation, we are also able to precisely determine the amount of the loan, which results from the estimated value of the property. In the descriptions you will find a link to the electronic database of land and mortgage registers where you can check the current legal status of your property.

A loan against the flat

  • No. of the Land and Mortgage Register.
  • Notarial deed confirming the purchase of an apartment.
  • Certificate from a co-operative or housing community about not paying rent.
  • Certificate from the Tax Office on exemption from inheritance and donation tax or on paid tax. This applies to real estate acquired on the road:
  • Decline – the certificate is always required.
  • Donations – a certificate required when the donation took place after January 1, 2007.
  • Pictures of each room and photos of the staircase.

Home equity loan

  • No. of the Land and Mortgage Register .
  • Notarial deed confirming the purchase of real estate.
  • Extract from the land register.
  • Wyrys (map surveying) – only if the plot has an area above 30 ares or is marked as “Role”.
  • Certificate from the Tax Office on exemption from inheritance and donation tax or on paid tax. This applies to real estate acquired on the road:
  • Decline – a certificate is required for each Notarial activity.
  • Donations – a certificate required when the donation took place after January 1, 2007.
  • Pictures from the outside showing the whole building and photos of each room from inside the house.

A loan for pledging a building plot

  • No. of the Land and Mortgage Register .
  • Extract from the land register.
  • Wyrys (map geodetic).
  • Notarial deed confirming the purchase of real estate.
  • Certificate from the Tax Office on exemption from inheritance and donation tax or on paid tax. This applies to real estate acquired on the road:
  • Decline – a certificate is required for each Notarial activity.
  • Donations – a certificate required when the donation took place after January 1, 2007.
  • A few photos of the plot and neighboring buildings, the nearest neighborhoods.

Apartment without the Land and Mortgage Register

Loans are also granted for real estates that do not have an established Land and Mortgage Register. In this situation, we require a relevant certificate from the housing cooperative agreeing to separate the premises into the new Land Register and on the basis of this document on the day of signing the loan. The notary submits an application to the competent court to create it and charge it for the mortgage loan.