Merchant Cash Advance Applicant Fraud on the Rise
July 24, 2011
| By: Sean Murray
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 Resource
Last modified: September 28, 2013
