Sophie M
University Administrative manager at the School of Filmmaking at North Carolina School of the Arts
Bank Loans: Any warning sign of a fraud?
I just got approved for a big loan with KAS investment bank but they want me to open an account with a deposit of 1% of the face value of the loan beofre giving me any money. KAS investment bank is located in London.
Does this sound strange to you? Have you ever had any dealing with them before? Thank you!
Good Answers (2)
Stephanie O
Senior Technical Program Manager
Best Answers in: Criminal Law (5), Employment and Labor Law (5), Property Law (2), Using LinkedIn (2), Event Marketing and Promotions (1), Compensation and Benefits (1), Contracts (1), Intellectual Property (1), Career Management (1)
Yes, it sounds strange. Very strange. In every loan I'm familiar with, any bank fees (like "origination" fees) is taken out of the proceeds of the loan. For example, if they approve you for a $2,500,000 loan, and there is a 1% fee, then they'll hand you a check for $2,475,000, and you'll be paying off a balance of $2,500,000. Admittedly I have experience only with vanilla mortgage loans in the U.S.
According to the KAS web site, "KAS BANK (established in 1806) is a solid and specialised European bank providing a wide range of securities and management information services. KAS BANK N.V. is registered by the Authority-FM and regulated by the FSA for the Conduct of Investment Business in the UK." Sounds good, but I'd verify it, e.g. with a banking official or financial expert in your own company. Also make sure that the entity you're dealing with actually IS KAS Bank and not a lookalike/impostor.
I would like to say that do not work with a company like this. We constantly are saving clients form fraudulant activities such as this. We work closely with the federal investagotrs to help shut down overseas sca,,ers. If you like I could send the name to my federal contact to check up on them. If they advertise or request you to deposit the money into a S.W.I.F.T. bank accout , then beware.
More Answers (3)
Marshall L
Funding 911
Best Answers in: Corporate Debt (1), Venture Capital and Private Equity (1), Starting Up (1)
To my fellow USC Trojan - tread very carefully.
I would also question whether or not KAS is licensed to offer loans in the US.
Sounds very suspicious.
Sheilah E
Owner, ★SME Management:.......... Business Management and Accounting Consultant
Best Answers in: Using LinkedIn (857), Professional Networking (37), Staffing and Recruiting (29), Accounting (20), Government Policy (18), Job Search (17), Career Management (15), Ethics (15), Business Development (14), Customer Service (12), Mentoring (12), Education and Schools (10), Computers and Software (10), Organizational Development (9), Small Business (9), Personnel Policies (8), Property Law (8), Advertising (8), Internet Marketing (8), Labor Relations (7), Non-profit Management (7), Criminal Law (6), Starting Up (6), Purchasing (5), Government Services (5), Compensation and Benefits (5), Tax Law (5), Lead Generation (5), Planning (5), Manufacturing (5), Quality Management and Standards (5), Blogging (5), Web Development (5), Corporate Law (4), Direct Marketing (4), Corporate Governance (4), Change Management (4), Communication and Public Speaking (4), Professional Organizations (4), Software Development (4), Facilities Management (3), Travel Tools (3), Freelancing and Contracting (3), Auditing (3), Venture Capital and Private Equity (3), Economics (3), Internationalization and Localization (3), Treaties, Agreements and Organizations (3), Writing and Editing (3), Market Research and Definition (3), Business Plans (3), Information Security (3), Regulation and Compliance (2), Business Dining and Entertainment (2), Resume Writing (2), International Law (2), Employment and Labor Law (2), Customer Relationship Management (2), Sales Techniques (2), Business Analytics (2), Derivatives Markets (2), Inventory Management (2), Project Management (2), Supply Chain Management (2), Individual Insurance (2), Personal Taxes (2), Personal Real Estate (2), Product Design (2), Pricing (2), Incorporation (2), E-Commerce (2), Enterprise Software (2), Computer Networking (2), Wireless (2), Air Travel (1), Certification and Licenses (1), Occupational Training (1), Conference Planning (1), Budgeting (1), Financial Regulation (1), Risk Management (1), Government Contracts (1), Exporting/Importing (1), Offshoring and Outsourcing (1), Customs, Tariffs and Taxes (1), Contracts (1), Finance and Securities Law (1), Graphic Design (1), Public Relations (1), Hedge Funds (1), Non-profit Fundraising (1), Philanthropy (1), Retirement and Estate Planning (1), Wealth Management (1), Branding (1), Positioning (1), Energy and Development (1), Biotech (1), Information Storage (1), Telecommunications (1)
First of all is the bank you are dealing with the real one? Do you have any idea how many bogus sites there are that look exactly like the real one. This all sounds fishy to me. Get a loan from a US lender where you know it is a legal loan and a legitimate company. Ask yourself why a London Bank would give a totally unknown foreigner a big business loan when you have no ties or business dealings there.
Sheilah
Sadiq B
Owner at M/S TECHNOSOMA, Islamabad
Best Answers in: Customer Service (1), Offshoring and Outsourcing (1), Computers and Software (1), Using LinkedIn (1)
Hi Sophie,
Did you receive my reply to your email in this regard? Kindest regards. Sadiq
