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Scam Alert

Money-management strageties.

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This story appears in the May 1997 issue of Entrepreneur. Subscribe »

If you're trying to get a small-business loan and someone asks you for upfront fees, stop! You are about to be scammed, says Harold Lacy of The Money Institute, a Golden, Colorado, company that specializes in helping young companies understand business financing.

"Scam artists have different ways of asking for money," Lacy explains. "They might say `Our investors need a feasibility study' and charge you $500 or $1,000--something small to get you into the loop. Then they come back saying the investors need this and that--and charge you for all of it."

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