Business funding scams: the warning signs, and how we behave
The most common business funding scam is simple: someone promises you money, then asks you to pay first. Real funders take their costs out of the deal or build them into the price. They don't ask for a deposit before you've seen a contract. If a "funder" wants money up front, stop.
The warning signs
1. A fee before the funding
The FTC warns that scammers ask for money "for 'processing,' 'insurance,' an 'application,' or something else" before any loan arrives, and puts it bluntly: "No one legitimate will ever ask you to pay for a promise." A fee paid to a personal account, by wire, gift card, crypto or a payment app, is a near-certain sign.
2. Approval promised before anyone has looked
Ads that say you'll be approved "regardless of your credit history" are a classic advance-fee pitch. A real funder can't promise approval until it has seen your bank statements. Treat certainty as a red flag, not a selling point.
3. Someone "from the SBA" contacting you
The SBA says it communicates only from email addresses ending in @sba.gov, and to be suspicious of anyone "promising to get approval of an SBA loan but requires any payment up front or offers a high interest bridge loan in the interim." It also warns about phishing that uses the SBA logo to get personal information or bank access. A logo on a web page proves nothing.
4. Pressure
"This offer expires at 5pm." "We need the fee today to hold your slot." Pressure exists to stop you checking. A real offer survives a night's sleep and a call to your accountant.
5. Cloned websites and fake approval letters
Scammers copy a real company's name, logo and website, then change the phone number and email. Some send official-looking "approval letters" with a fee due before release. Check the company's details independently (a search, your state's records, a number you already had), not from the letter itself.
6. Requests for your bank login
No funder needs your online banking password. Statements, yes. Login details, never.
How Ask Sterling behaves
- We never ask you for a fee, a deposit or a payment of any kind.
- We never ask for your bank login, passwords or one-time codes.
- Your enquiry goes to one named partner only: Abbey Road Capital / SOJA Ventures (see who you'll speak to). If someone else calls saying they got your details from Ask Sterling, they didn't get them from us.
- Our only email address is mike@optimax-ai.com. If you're unsure whether a message really came from us, email that address and ask.
Where to report a scam
- Any funding scam: report it to the FTC at ReportFraud.ftc.gov.
- Anything claiming to be SBA: report it to the SBA Office of Inspector General through its online hotline. The OIG says it no longer takes complaints by email or phone.
- Unwanted sales calls: register your number free at DoNotCall.gov or on 1-888-382-1222, and report illegal calls to the FTC. The Registry stops calls from companies that follow the law, not from scammers.
- If you've already paid: call your bank straight away and ask them to try to recall the payment.
- If it used our name: email us too, so we can warn others.