When in a situation where an individual or businesses are unable to receive loans for real estate or other investments in general, due to their bad credit or other financial reasons, they may turn to borrowers of an untraditional type. Loan sharks are one of them. Although loan sharks are generally deemed as a rough type of individuals that threaten borrowers, this isn’t always the case. Loan sharks sometimes appear as legitimate businesses in general.
Loan sharks are lenders who target borrowers that have bad credit and offer loans which are deliberately designed to appeal to the borrower. Loan sharks typically prey on the borrower’s desperation and offer financing options to borrowers who don’t have other options. While these loans sharks do provide short-term financial relief, the long-term of these options are catastrophic.
The following steps can be followed to avoid loan sharks in the industry:
• Unsolicited offerings are suspicious.
Loan sharks generally target victims by using public records and may look for distressed businesses or individuals’ record information. With that information, they may send letters or emails of offerings. In some instances, lenders may be persistent. If it gets to the point of harassment, a police complaint can be made.
• Checking contact information on the place.
Loan sharks wouldn’t hesitate to direct potential borrowers to fake websites or provide fake addresses to make them seem more legitimate. Checking the addresses and everything on the lenders’ site with efficiency would allow borrowers to interpret the lender’s legitimacy.
• Insist on clear answers.
Loan sharks may sometimes avoid discussing details of the loan. It is essential for the borrower to ask about the interest value, the length of payment and penalties. Viewing the loan contract is also a right of the borrower before signing.
While some individuals may get caught to loan sharks unintentionally, others may find themselves choosing loan sharks as a final option. This is just the wrong way to go as there are multiple other options for Franklin hard money loans available through proper legitimate and efficient business services.
BridgeWell Capital is a private money lending organization that has a reputation for being one of the best in the industry. Borrowers can gain their funds effectively with low down payments, no hassles, fast funding, and legitimacy for their investments!