Tag: Loan Consultants

Small Business Shysters are everywhere but very prevalent in the Small Business Lending Field. A Financial Loan Adviser or Loan Packager should be able to tell you, the Small Business, exactly what they can do for you. Very, Very, Few can guarantee that they can obtain financing for you. When approached by a Loan Person who says they can guarantee anything, then get it in writing and do not ever pay the full amount up front. It is customary for an adviser to get an amount up front because they will be, hopefully, Expending Time on putting together a Proposal or Financial Package for you. This is often done because if the borrower decides not to do the project then the Financial Professional could be, “out the time spent on this project”. I usually get a Payment of one half of the project fee up front and then the receive the remainder of the Fee when the project is complete or a milestone is achieved.

I hear of a Small Business being taken by a Small Business Loan Shyster at least once each year. Usually the Small Business wants to get a loan for his or her business and is turned down by their bank. The Small Business then contacts a Small Business Consultant who says they can obtain financing for the Small Business. This Shyster Consultant gets most if not all of the money paid up front and says they can Assure or Guarantee that the Small Business will obtain financing for their project. This financing does not occur. Then the Small Business goes to a Public Entity Funding Source at a City or County and inquires about the Public Entity getting the financing. Most Public Financing Sources will let a Small Business apply but do not write Business Plans or Bank Proposals. They do not have the Personnel or the Time to do this work and will definitely not Guarantee that the project will be approved. The Small Business being scammed, once already, will not engage any paid consultant for fear that the same results will occur as the first time.

They usually end up leaving the Public Entity because they cannot get their financial work done for Free. Very few Financial Consultants will work for Free and if they do there is always the question of the quality of the work being done for Free. A consultant that helps a Small Business obtain Financing should be Educated with at least some sort of Financial Degree but a MBA is the Best. I have seen some Accountants and Attorneys that are good but the real test is how many clients have they worked with and been successful in obtaining financing.