Take care when looking for loans by David Craik •
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A Coatbridge haulier is warning others seeking cash to expand or set up businesses to be wary of adverts offering "non-status" finance. '
Danny Brown of Geotechnical Engineering responded to such an advert in Commercial Motor (CM 12-18 March). He wanted finance of £250,000 but claims that when he phoned the advertised number he was told by a John Smith that he would have to pay £500 up front plus a 10% deposit of the £250,000.
Smith told Brown he could get the money from an off-shore bank in Jersey.
Brown says Smith was willing to meet him to receive the £500 and deposit—but, bizarrely, insisted that the meeting take place at Falkirk's Beefeater restaurant. "If this was a wind-up," Brown adds, "it is a terrible thing to do to people wanting to move their company on or get started."
CM phoned the same number and requested £12,000 to buy a second-hand truck.
A John Miller said the money could be obtained without any problems from a Jersey offshore bank. As with Brown, he asked for a 10% deposit and assured us that there would be no credit checks.
Miller asked for three forms of identification, including a passport and driving licence. He also wanted to know what kind of truck we wanted to buy and where we would buy it.
There was no mention of APR; repayment of the £12,000 loan would include payments of £1000 a year, described by Miller as "a cheap rate".
O Falkirk CID advises hauliers that when responding to similar adverts they should only enter into financial transactions after suitable checks have been made.