Merchant Cash Advance Applicant Fraud on the Rise
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.
– The Merchant Cash Advance ResourceLast modified: September 28, 2013
Sean Murray is the President and Chief Editor of deBanked and the founder of the Broker Fair Conference. Connect with me on LinkedIn or follow me on twitter. You can view all future deBanked events here.