Scenario: You are offered an unsecured loan for your business, even though you may have credit problems.
Scam: You have to pay a fee in advance, and the loan never materializes.

	Talk to your own bank about a loan before considering other sources. You're more likely to get help from a financial institution that you already have a relationship with than from someone who doesn't know you or your business.
	If your bank turns you down, ask why and whether there is anything you can do to change that decision. Perhaps you can put up some collateral to secure the loan or get a co-signor who will agree to share responsibility with you.
	Don't believe advertisements promising loans regardless of past credit problems. If you have bad credit, it's unlikely that any legitimate bank or other financial institution will give you a loan.
	Be especially wary of unsolicited calls, e-mails or letters offering you a loan. You could be the target of someone who wants to take your money, not lend it.
	Requesting a fee up front for "processing," "application" or the "first month's payment" is a red flag of loan scams. Legitimate lenders don't require payment in advance of approving loans.
	Once you fall for a loan scam, the crook may try to get even more money by telling you to send another payment to a second company to complete the loan process.
	Before you sign on the dotted line, get all of the loan terms in writing, including the payment schedule and interest rate. If the lender isn't familiar to you, contact your state banking department and ask how to confirm that it's licensed and operating properly.
	If legitimate lenders have turned you down, the federal government may be able to help you get a loan. Contact the Small Business Administration to find out about the eligibility requirements.
	Report loan scams to law enforcement authorities and the Better Business Bureau.

If you need advice about a solicitation or you want to report a possible scam, call the NFIC hotline at 1-800-876-7060. You can also ask questions or report fraud using our online forms.

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