Warning: the business-loan text solicitation pattern (from a Wisconsin landlord)

Warning: the business-loan text solicitation pattern (from a Wisconsin landlord)

Member since 2026 · 1 post · 1 vote

Warning for other small business owners and landlords — learn from my last two weeks.

Since I started looking into a business line of credit, my business line has been flooded with unsolicited "funding" texts and calls — sometimes five a day. The pattern is almost always the same:

1. They text from a random number promising money TODAY — "$100K, payback only $112K," "approved, no fees."

2. When you ask for the basic terms in writing — amount, APR, term, ALL fees, prepayment penalty, collateral, personal guarantee — plus their full name and company, they refuse. Every time. "We can't quote without your financials." "That gets reviewed inside the application."

3. Then the push: "What's the best email to send the application?" They want your documents, bank info, and EIN before they'll put a single number in writing.

4. Some are merchant cash advances dressed up as loans — daily or weekly payments at effective rates no legitimate lender charges.

What I do now, and what I'd tell anyone:

- Real lenders put terms in writing. No written terms, no conversation.

- Get their first AND last name and company before anything else. A real lender isn't afraid to say who they are.

- Never send statements, documents, or your EIN to a stranger who texted you out of the blue.

- Report them. I report every single one: FTC (ReportFraud.ftc.gov), FCC (consumercomplaints.fcc.gov), and Wisconsin DATCP, plus BBB and Google reviews where the company has a real profile. Two examples from this morning alone: FTC reports #209792890 and #209790412 — both filed today, $0 lost because I never sent them anything.

They count on you being too busy to push back. Push back.

— A Wisconsin small business owner

1Reply
288 views

Most Popular Reply

Robin SimonBusiness Member
Lender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
22h

Have you guys looked into potential ways to earn fines from reporting these? I've seen guides here and there floating around on how to do so - probably more for the sake of getting them to stop rather than a $ earning opportunity (to report), but would be nice to push back with a more effective counter

See this reply in the discussion

3 Replies

Jump to latestLatest
  • Diana KhanPro Member
    Attorney · 10451 Mill Run Cir #755 Owings Mills, MD 21117 · Member since 2024 · 781 posts · 278 votes
    1d
    Quote from @Clarissa Bennett:

    Warning for other small business owners and landlords — learn from my last two weeks.

    Since I started looking into a business line of credit, my business line has been flooded with unsolicited "funding" texts and calls — sometimes five a day. The pattern is almost always the same:

    1. They text from a random number promising money TODAY — "$100K, payback only $112K," "approved, no fees."

    2. When you ask for the basic terms in writing — amount, APR, term, ALL fees, prepayment penalty, collateral, personal guarantee — plus their full name and company, they refuse. Every time. "We can't quote without your financials." "That gets reviewed inside the application."

    3. Then the push: "What's the best email to send the application?" They want your documents, bank info, and EIN before they'll put a single number in writing.

    4. Some are merchant cash advances dressed up as loans — daily or weekly payments at effective rates no legitimate lender charges.

    What I do now, and what I'd tell anyone:

    - Real lenders put terms in writing. No written terms, no conversation.

    - Get their first AND last name and company before anything else. A real lender isn't afraid to say who they are.

    - Never send statements, documents, or your EIN to a stranger who texted you out of the blue.

    - Report them. I report every single one: FTC (ReportFraud.ftc.gov), FCC (consumercomplaints.fcc.gov), and Wisconsin DATCP, plus BBB and Google reviews where the company has a real profile. Two examples from this morning alone: FTC reports #209792890 and #209790412 — both filed today, $0 lost because I never sent them anything.

    They count on you being too busy to push back. Push back.

    — A Wisconsin small business owner

    @Clarissa Bennett, I agree with you. If someone is offering funding but won't explain the terms or identify their company, that's a good reason to be cautious. I'd want to know exactly what I'm agreeing to, especially when it comes to repayment terms, fees, collateral, and personal guarantees, before sharing any sensitive information.

    I'm a real estate and business attorney based in Maryland, and I work with business owners and investors on contracts and related matters. For example, a landlord might be looking for quick funding to renovate a property without realizing that a personal guarantee could put their own assets at risk if the business can't repay the money. That's why understanding the agreement before signing is so important.

    I appreciate you sharing your experience, @Clarissa Bennett! It's a helpful reminder for other business owners and investors to be careful when considering financing offers. Happy to stay connected!

  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    1d

    The amount of fraud out there right now continues to blow my mind. Somehow, a company has gotten my contact information and consistently calls me every night at like 10 pm with a $60,000 line of credit. I continue to block every number and have changed my phone. If they're not a contact, it screens the call first. I recommend everybody do that. It reduces the amount of spam significantly.

    7e investments53 Reviews
  • Robin SimonBusiness Member
    Lender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
    22h

    Have you guys looked into potential ways to earn fines from reporting these? I've seen guides here and there floating around on how to do so - probably more for the sake of getting them to stop rather than a $ earning opportunity (to report), but would be nice to push back with a more effective counter

Join the conversationCreate a free account to reply, vote on answers and follow this thread.