Outsmarting the Scammers

Outsmarting Business Listing Broker Scammers: What Business Buyers Need to Know

As a business buyer, you always look for the perfect established, money-making business listing opportunity to invest in.

Unfortunately, there are scammers out there who will try to take advantage of your enthusiasm and trust.

Here are the top five scams you need to be aware of when dealing with business listing broker scammers:

1. Fake Business Listings: Scammers create phony business listings with counterfeit financial statements and sales data to entice unsuspecting buyers to invest in non-existent businesses. They often ask for upfront payment or deposits to secure the purchase of the fake business, leaving the buyer with nothing.
2. Identity Theft: Scammers may request sensitive information from business buyers, such as social security numbers or financial account information, to supposedly "verify" their identity or facilitate the purchase. They use this information to steal the buyer's identity and commit fraud.
3. Phishing Scams: Scammers send emails or messages that appear to be from legitimate business brokers, asking the buyer to click on a link or download an attachment. These links or attachments may contain malware that can infect the buyer's device, steal their information, or compromise their security.

4. Business Buyer Bank Statements: Business brokers often request recent copies of bank statements from potential business buyers for desired brokerage listings. They claim they will not release any information on the business listing until they confirm the buyer's cash liquidity or down payment availability to finance the business through their in-house SBA lending partner(s). However, as a business buyer, providing this sensitive financial information too soon can give away your negotiation leverage and weaken your position. Your bank statements are your financial roadmap; prematurely sharing them with business brokers is akin to revealing your destination before you even hit the road. It is in your best interest to keep your financial information confidential and negotiate from a position of strength.

5. Business Broker and SBA Lender Partnerships: Business brokers prioritize the business seller's interests above all else and earn up to 10% commission on the business listing sale price. Don't be fooled by their friendly demeanor or recommended SBA lending partners, who also offer the broker an extra incentive of up to 2% of your SBA-funded loan amount. This poses a total conflict of interest and leaves the buyer vulnerable to exploitation. To safeguard your investment, steer clear of the broker's recommended partners and work with a reliable and impartial SBA business acquisition lending consultant who will prioritize your best interests.

The massive fraud losses in the SBA PPP loan program are a stark reminder that business buyers must protect their financial interests at all costs.

The staggering amount of potentially fraudulent loans identified by the SBA Inspector General, totaling $78.1 billion, highlights today's need for business buyers to exercise caution when working with SBA lending partners recommended by business brokers.

Respectfully,

-Deb Curtis

#supportsmallbusinesses?#buyandbuild?#integritymatters

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Deb's commitment to your business buyer loan project success and unwavering dedication to the Small Business Administration's (SBA) lending guidelines makes her the ideal partner for individuals seeking financing for a business acquisition.

Deb's approach to business ownership transitions is grounded in mentorship and servant leadership, ensuring transparency and integrity.

Connect with Deb today for a complimentary 30-minute SBA eligibility call and take the first step towards realizing your small business ownership goals.