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Because 600,000 companies a year are founded in the United States alone and many of them seek outside funding, there are many, many web sites that take aim at this lucrative market and purport to introduce entrepreneurs to investors. The sad fact, however, is that while it's very easy for a site to sign up thousands of entrepreneurs (who want the money), it's virtually impossible for them to sign up investors (who have the money.) That's why none of these sites can legitimately point to their track record for getting entrepreneurs funded (despite any claims to the contrary). Instead, they make their money in one of three ways: selling you as a lead to service providers, selling advertising against your page views as you chat with other entrepreneurs, or charging you listing fees and then up-selling and re-selling you when you don't get funded.
Luckiest - what's up with the dictionary definition of "scam"? As a key member of this community, it would mean a lot if you could help us move along the "let's not post for the sake of posting" initiative.
Hanana - You are on the right track. It's typical to charge a nominal fee (like $100) in order to review the package, but the bulk of fees should be based on performance. You can always check the Better Business Burea to see if there have been any complaints, or even come to a forum like this and see if anyone has had experience. I'd also be wary of someone making guarantees about what they can and cannot do when they don't have all the facts about your situation. There are lenders/brokers llike that on this site...someone says "I need $200,000, have awful credit, and have no money" and you'll get 84 posts from people claiming they can help. I'd steer clear of those types of characters.
Would you care to share what it is that you are looking for?
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Hi guys. I know one of the characteristic of people who just try to rip off someone is when they ask for up front fees. And when we ask that the fees to be just put into the loan and be paid at closing, they refuse. does anyone here agree ? can the senior give me other tips / lessons you have learned in the funding world ?