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If you're trying to get a small-business loan and someoneasks you for upfront fees, stop! You are about to be scammed, saysHarold Lacy of The Money Institute, a Golden, Colorado, companythat specializes in helping young companies understand businessfinancing.
"Scam artists have different ways of asking formoney," Lacy explains. "They might say `Our investorsneed a feasibility study' and charge you $500 or$1,000--something small to get you into the loop. Then they comeback saying the investors need this and that--and charge you forall of it."
Lacy says scam artists often surround the money withinternational mystique by claiming the investors are in a foreigncountry in chaos and are trying to get their cash out of thecountry. Look out for:
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