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    3 Replies Latest reply on Oct 30, 2008 4:25 PM by Lighthouse24

    Consultant Fee

    unikapparel Newbie
      I have a quick question. Lenders have been approaching me with "guarantee" unsecured loans, but I have to pay a consultant fee of $300 for them to help me. It sounds illegal to me, but I would like to know for sure. Have anyone gone through something similar? Thanks for the help!
        • Re: Consultant Fee
          DomainDiva Ranger
          I for one, am extremely leery of these lending deals. While I personally have not had any experience such as the one you are describing, I have been approached by people wanting to lend me money and to offer financing. The application(s) I have received are an identity thieves dream!

          As the economy worsens, there will be many people that will approach you wanting 'fees' before they are able to 'help' you. While I cannot say for sure that you may be in line for a scam....it certainly sounds suspicious. There are several credible lenders here on the board, you may want to contact them.

          Good Luck and be careful!
          DD
          1 of 1 people found this helpful
          • Re: Consultant Fee
            Lighthouse24 Ranger

            A legitimate institution with money to lend isn't in business to sit on that money. They WANT to lend it, because there are plenty of business owners out there who want to borrow it, are capable of paying it back, and are willing to pay a decent interest rate for the opportunity -- which is how a legitimate lender makes a profit.

            When business capital becomes available to a particular segment or industry from a certain source (or through a specific program), it's like a gas station with fuel for $1.50 a gallon -- EVERYONE in that biz hears about it, and prospective borrowers are lined up quickly. A lender with money doesn't have to make redundant posts in every social network that exists to find customers.

            Given all that, charging an up-front fee says to me that the "lender" in question makes a profit by taking applications, not by actually lending money. The information they gather may be used fraudulently or it may not -- but either way, I tend to believe that the firm is really in business to shuffle paper, not to make business loans.