Line of credit scams

**Robinhood21** · 04-12-2024, 02:02 PM

For all the honest people trying to make a buck out here.

We really need to make committee and report all these fraudsters.

This is really getting out of hand.

This is just beyond disgusting. For Every 2 out of 10 merchants I have spoke to they have been getting a LOC scammed.

Each rep in my office has been exposed to a merchant been getting a LOC scam.

Like wtf is this nonsense. How do these people sleep at night knowing they knowing they do this. Ruining the deal for everyone else that's in the deal. The merchants are completely drained out of money. All these contracts never had phone number no actual website. Just BS deal 20% fees 10 days..

The irony is just so unreal.

**MikeDavis7** · 04-12-2024, 02:07 PM

Sad very sad. Been doing this now for 5 years and this year every single client is getting a call getting pitched on the fake line of credit.

It’s sad also alot of these people doing these scams are fellow people from my linage. People who pray to God , Day - night , and then go bang clients over.

Those who work with honor may you all be blessed

**diditevenfund** · 04-12-2024, 02:08 PM

Couldn't agree more... A lot probably goes back to these clown pack sellers and buyers. Id assume these losers are buying packs to commit these schemes to defraud. Lock em all up, toss the key.

**AGuyWhoFunds** · 04-12-2024, 02:09 PM

Originally Posted by Robinhood21

For all the honest people trying to make a buck out here.

We really need to make committee and report all these fraudsters.

This is really getting out of hand.

This is just beyond disgusting. For Every 2 out of 10 merchants I have spoke to they have been getting a LOC scammed.

Each rep in my office has been exposed to a merchant been getting a LOC scam.

Like wtf is this nonsense. How do these people sleep at night knowing they knowing they do this. Ruining the deal for everyone else that's in the deal. The merchants are completely drained out of money. All these contracts never had phone number no actual website. Just BS deal 20% fees 10 days..

The irony is just so unreal.

I have been seeing this a lot the past few months. Brokers are offering standard merchant cash advances upfront with a line of credit side by side which we all know is full of ****. For the true honest hard working brokers, this only makes our jobs harder.
If you have to sell a mca by promising a fake loc, you are dog**** in sales..

**Robinhood21** · 04-12-2024, 02:13 PM

Originally Posted by diditevenfund

Couldn't agree more... A lot probably goes back to these clown pack sellers and buyers. Id assume these losers are buying packs to commit these schemes to defraud. Lock em all up, toss the key.

Do you think it will eventually ever lead up to that?

It will ultimately be up to some merchants and some honest brokers who will report these fraudsters. I have been trying to help merchants to contact l their local state attorney general

**BR-Nightmare** · 04-12-2024, 02:16 PM

These ****ers need to be LOC-ked up.

**MikeDavis7** · 04-12-2024, 02:19 PM

I think they all being watched by Uncle Sam already but they waiting. They are being very loud with also, keep pushing fellas. God praises the ones who work hard and with work ethic. Those who dark eventually will come into light

**fundinggrasshopper** · 04-12-2024, 02:23 PM

as someone who facilitates both true bank lines as well as mca's, there are some very obvious things we ask merchants who we suspect may be in the process of getting carrotted, to point out where the may be getting misled...

its all about doing good business, giving your professional opinion on how you have seen the scam go before & what the merch realistically qualifies for given their current situation... and pointing out the glaring holes in the scammers reasoning/promises. instead of just being critical of them to a merchant who believes they are getting a million dollar line within a few days...from the people you are now verbally trashing to them.

I've prevented lots of merchants from getting carrotted by having a simple, professional, respectful conversation with them.
some of them still go through with the carrot, until they see that its a carrot...many of then come back and end up taking the best MCA we can deliver to them, just because we looked out for them and explained the truth of what was going on.
some of them still go through and get carrotted. some of them many times over. despite how strong some of these guys banking may look, if they are that gullible, as a broker who does good business you need to move on.

I dont believe in karma too much but if we've seen anything over the past few months, those running the scam will likely pay for it eventually. in the meantime the choice is between complaining about it or changing how you operate to insulate your company the best you can from these people engaging in fraud.

**Robinhood21** · 04-12-2024, 02:29 PM

Originally Posted by fundinggrasshopper

as someone who facilitates both true bank lines as well as mca's, there are some very obvious things we ask merchants who we suspect may be in the process of getting carrotted, to point out where the may be getting misled...

its all about doing good business, giving your professional opinion on how you have seen the scam go before & what the merch realistically qualifies for given their current situation... and pointing out the glaring holes in the scammers reasoning/promises. instead of just being critical of them to a merchant who believes they are getting a million dollar line within a few days...from the people you are now verbally trashing to them.

I've prevented lots of merchants from getting carrotted by having a simple, professional, respectful conversation with them.
some of them still go through with the carrot, until they see that its a carrot...many of then come back and end up taking the best MCA we can deliver to them, just because we looked out for them and explained the truth of what was going on.
some of them still go through and get carrotted. some of them many times over. despite how strong some of these guys banking may look, if they are that gullible, as a broker who does good business you need to move on.

I dont believe in karma too much but if we've seen anything over the past few months, those running the scam will likely pay for it eventually. in the meantime the choice is between complaining about it or changing how you operate to insulate your company the best you can from these people engaging in fraud.

The problem is when you're in deal and have your own money in it and you got ****ed over this is where the problem lies. All these scammers are just kids around 18 years or old or more Brooklyn based Shops telling the world they dont fund Jews yet in the process they **** over Jews in the process that are in the deal.

**FCG** · 04-12-2024, 02:58 PM

I've come across merchants before who, when I try to explain to them that they might be falling victim to the ol bait and switch or the LOC scam, have responded on multiple occasions with, 'You're just talking down on your competition'! lmao ��

**Chambo** · 04-12-2024, 03:12 PM

Merchants don't want to hear "if it sounds too good to be true, it is." The offer is usually 100x better than any of the MCAs they have been offered.

they're holding out hope.

But as someone above mentioned, the Feds are already wise to it and they are collecting data. when they lower the boom, it'll be too late for those ISOs.....alas, they mostly use fake names and are some rinky-dink storefront that can close down in a half hour. As long as ISOs can open up in 10 minutes and there is no barrier for rep entry, this will continue in some fashion.

**diditevenfund** · 04-12-2024, 03:28 PM

LOC scams, term loan scams, "buy my full packs" , etc. Why did this just explode in popularity? Yeah all that has been a thing I guess for a while, but as of late its like RED HOT shi* to people? Lead gen that tough and brutal that people just go "you know what, lets buy some fking packs, sell some fake LOCs and ball out"?

Feds probably watch these threads, whats app groups, all that and are going to just have a wild time crucifying these a**hats

**diditevenfund** · 04-12-2024, 03:33 PM

Originally Posted by FCG

I've come across merchants before who, when I try to explain to them that they might be falling victim to the ol bait and switch or the LOC scam, have responded on multiple occasions with, 'You're just talking down on your competition'! lmao ��

Lol this...

"Just because you offer these bullshi* deals doesn't mean everyone else does"... 2 weeks later "So I got scammed, can you help me out?"

**ridextreme** · 04-12-2024, 03:55 PM

I had a merchant tell me he was told when he pays back a 20K advance he'll get a 200K LOC. He paid it back in 3 days and the broker blocked him.

**Russell** · 04-12-2024, 05:32 PM

Originally Posted by ridextreme

I had a merchant tell me he was told when he pays back a 20K advance he'll get a 200K LOC. He paid it back in 3 days and the broker blocked him.

it's very simple to stop them , in order to do the scam they need a bank account, all of the wires are going to bank accounts which in order to open need their real info not the fake names they give to the merchants, so all the attorney general or feds need to do is go after metropolitan bank and they'll easily get all of these scammers locked up, or even if they use a different bank just get a subpoena for whatever bank they're using and lock them up

**JonathanHendrix** · 04-17-2024, 04:12 PM

To be fair, Delta Bridge is the only good funder I've seen in this industry. They're always rock solid. Delta Bridge and YellowStone capital are probs my top 2 funders. They have really competitive LOC offers. Lmk if you want a contact to either Delta Bridge or YellowStone, Cuz they are very separate entities. Not connected at all.

**goldenhippo80** · 04-17-2024, 04:36 PM