Arkansas SBDC: E-News - Internet Scams: If It Sounds Too Good to Be True, It Probably Is

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9/26/2006

Internet Scams: If It Sounds Too Good to Be True, It Probably Is
by Amber Jackson, UALR Lead Center

Karen E. Klein, a writer for BusinessWeekOnline, has published a report that warns small business owners of internet scams. Some online agencies claim that, for a fee, they can find funding for people with a business idea who have bad or no credit. Here are some warning signs that may indicate that it is a scam.

If they ask for money up front, be cautious, and keep in mind that angel investors typically work directly with the client, not through an agent.

Be aware that few investors are willing to provide monetary support to a business idea without seeing a feasible business plan.

If the agency is claiming that they can write a business plan for you or put together the loan application, remember that you can visit your local Small Business Development Center for free advice on these topics.

Of course, you can always consult the Better Business Bureau to find out if the company is a member, how long it has existed, and how many complaints have been issued against it.

For more information, follow this link: http://businessweek.com/print/smallbiz/content/sep2006/sb20060915_310276.htm

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The Arkansas Small Business and Technology Development Center is funded in part through a cooperative agreement with the U.S. Small Business Administration through a partnership with the University of Arkansas at Little Rock College of Business and other institutions of higher education. All opinions, conclusions or recommendations expressed are those of the author(s) and do not necessarily reflect the views of the SBA. It is the goal of UALR to eliminate discriminatory harassment and to promote equal opportunity regardless of race, gender, color, national origin, sexual orientation, age, religion, veteran's status, or disability.