How to Ascertain if a Private Lender is Legit


Getting a car loan, mortgage, or any other lending is a necessity for many people worldwide. The need for loans has fueled the rise of scam lenders who are targeting unsuspecting customers. Their tactics may have evolved, but some red flags you can spot after conducting intensive research on the company’s legitimacy.

If you want to borrow from a well-established loan lending company, consider private cash lenders for your real estate financing needs. However, be cautious of tons of smaller and unknown scam companies that target small business owners and individuals.

How will you know if a private lender is legit?

Do Online Research

Conduct online research by searching the company’s name to learn more about their operations. However, do not rely much on the website since scammers can create a fake site and get positive reviews to lure unsuspecting clients. To get more credible information, check Better Business Bureau database.

Ensure the Company has an Actual Office

A company with a physical office and employees can assure you of its legitimacy. Also, check the period the Company has been in operation. For online loan lending companies, check if they have a customer care number and do due diligence to know if it’s legit. There are many scam online lending companies, so look for red flags to avoid scamming.

Check Payment Requirements

Be on the lookout for companies asking for upfront payments. A legit lending company won’t ask for such; a majority of legit companies deduct such fees from the loan. Paying upfront cannot guarantee you a loan. It’s a scammer’s way of stealing for borrowers.

Get Professional Assessment

Use a lawyer to check if the loan agreement is legitimate. These professionals can detect scams easily as opposed to an ordinary person. Avoid companies that disregard legal reviews since they may have hidden agendas.

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