Borrowing has always been a common practice among many businesses. However, it is not a simple task to do for most business owners. Borrowing from an illegal money lender can be risky since you put your company at risk if the loan amount is not paid back on time.
Many people do not know that there are illegal money lenders out there. Most of us only associate loan sharks with movies and television shows. However, these people really exist, and they give loans to people who need funds immediately and then charge them an astronomical amount of interest for it. When you borrow from an illegal money lender, he will not be interested in your ability to pay the loan back. He will only want to know the value of your property and how much security you can offer for the loan. Once he has possession of your crucial information, he can then sell your property for cash if you cannot make payments on time.
What is an illegal money lender?
Some credit card companies do not require a credit check, but they need sufficient income to fulfill the minimum payment. However, some lenders will lend money to you regardless of your income.
Illegal money lenders are people or businesses that lend cash without having any formal agreement with the borrower. Usually, the loans are small in amount, from $100 to $1000. They offer loans to people with poor credit scores at an extremely high-interest rate. This interest rate is technically more than the one permitted by law and generally doesn’t provide any sort of protection for the borrower. Such a lender can be a scammer or even a fraudster who might not intend to give the loan.
The money lenders are generally unlicensed, so they do not have any obligation towards their borrowers. The borrower has no way of legal recourse if he cannot return the money on time or decides to break the contract. These illegal money lenders tend to target people who want urgent cash.
What are the dangers of borrowing from an illegal money lender in Singapore?
It is prohibited to operate as a money lender or a loan shark. When re-payments get missed, loan sharks may use intimidation and threats of violence against you or your family to help them solve their financial issues. It can be a horrible experience with alarming consequences for one’s health and well-being.
Borrowing from any loan shark can seem like a good idea at first, but it can quickly escalate into a debt of tens of thousands of pounds with no clear indication of when the money will get returned. When borrowers cannot repay their loans, they may get driven to commit crimes, and debt to legal firms may grow out of control, jeopardizing tenancies and other vital aspects of daily living.
How to identify illegal money lenders in Singapore?
The first step is to comprehend the various methods used by illicit money lenders. The second step is to realize that there are four systematic ways to spot illegal money lenders.
The first strategy entails looking for websites that seem to provide loans but demand high-interest rates. These are the most apparent illicit money lenders, and it’s easy to spot one if you come across one.
The second way is looking for people who offer no paperwork or formality for loans. It is a specific technique to spot illegal money lenders since they don’t ask for any paperwork or evidence of income. Usually, they offer a cash loan, charge exorbitant interest, can threaten you, or demand your bank card, benefit card, passport, watch, or other valuables as collateral.
They primarily run their business from their house as Moneylenders with a license can only work out of their offices. These lenders are also prohibited from advertising their services anywhere other than owned media and government-approved venues.
Moneylenders with a license are only allowed to operate for a maximum of eight hours per day, five days per week, whereas illegal moneylenders use outside of office hours.
Alternative ways to fund your business without taking a loan from an illegal moneylender
There are multiple methods to fund your business without taking a loan from an illegal moneylender. Some alternative methods to support your business without taking a loan from illicit moneylenders include
-Taking a secured loan from a legal moneylender
-Contacting angel investors
-Raising funds through crowdfunding sites
Entrust SU Credit for your loan needs in the most secure way!
The risk of borrowing from a money lender is very high. Every year, hundreds of people become victims of scams and illegal activities. If you are seeking to borrow money in Singapore, we highly recommend that you use the services of SU Credit Pte Ltd. We retain an extensive network of reliable partners worldwide and can arrange funds for your needs. We will present several different solutions that best meet your needs when you apply with us.
Our company has been in the lending business for more than ten years and has helped thousands of people get the support they need to get back on their feet. We do this by offering our clients flexible loans with reasonable interest rates. Whether you need a personal loan or a business loan, we have got you covered with our services. All loans are processed quickly and easily online, so you do not even have to leave your home. We want to help your life be better! For more information on how we can assist, please feel free to contact us today!