Merchant Cash Advance Applicant Fraud on the Rise

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Fraudulent Applications are becoming more commonplace in the Merchant Cash Advance industry. Scott Griest, the CEO of American Finance Solutions had this to say about it:

  • Hard fraud is when outright crooks are submitting applications for businesses that do not exist, have stolen a business’ identity or a desperate actual owner has altered his financial documents to qualify for more favourable terms.

  • Soft fraud is when a legitimate business has submitted actual documentation, but is still not being truthful about his or her business.

  • All funding companies should become members of NAMAA.

  • In AFS’s first month of membership they detected more than $20,000 in submitted fraud deals.
    Bad debt has dropped by 50% over the past 12 months due to fraud detection.

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– The Merchant Cash Advance Resource

Last modified: September 28, 2013
Sean Murray

Category: merchant cash advance

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