Business Finance

Avoiding Business Finance Scams

All businesses require business finance and other professional services to operate, to trade legally, to pay taxes and to comply with federal and state laws. Going it alone carries risks and so all but the most devout micro-managers will approach third parties to carry out key services or to raise finances or lines of credit.

When carrying out your own work the buck stops with the business owner, but when it comes to dealing with providers of professional services you expect them to be just that – professional.

Unfortunately as in any area of life, when money’s involved there’s always the risk of scammers and fraudsters taking advantage. Getting it wrong doesn’t just put the business owner at risk but can have an impact on employees and your suppliers. When it comes to business scams the risks can be amplified, hitting other innocent parties as a knock-on effect.

Although many elements of business services are heavily regulated – such as the areas of finance and accountancy – when fraud is perpetrated it tends to happen at a much higher level, with a lot more zeroes on it’s cost.

So when setting up your company, getting funding in place or paying your taxes on profits it’s essential to work with the right service partners.

On single mistake in your choice of supplier can have long-lasting repercussions not just for you but everyone your business has touched.

So how can you protect yourself when looking for professional business finance services?

• Only use legitimate and trusted companies, such as those we list above.
• If a deal looks too good to be true – it probably is. Nobody does anything for free or without expecting something in return, be it future work, or to steal your data or trade secrets. Know what the catch is.
• Check a service company’s credentials at the BBB and with your local Chamber of Commerce if they are in-state.
• Read online reviews – is there a pattern of complaints with the company concerned?

And most importantly, remain vigilant. In an age where everything is connected scams can be about much more than money.