Learn: financial difficulty

Spotting debt and loan scams that target struggling firms

Fraudsters know that a business under pressure will grab at a lifeline. That makes struggling companies a target for debt and lending scams. A little scepticism protects you.

Red flags to watch for

Be wary of upfront fees for a loan you have not received, guaranteed approval regardless of circumstances, pressure to decide immediately, and contact from firms you never approached. Genuine lenders do not work this way.

Check who you are dealing with

Verify a lender or adviser independently before sharing details or paying anything. Use official channels and public registers rather than links or phone numbers a caller gives you.

If a debt collector contacts you

If someone claims to be collecting a debt, confirm it is genuine before paying. Check it against your own records and contact the original creditor directly using details you already hold.

If a contact about a Credicorp account looks suspicious, verify it via our official contact page.

We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee. As business finance outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or FSCS.

See also: A debt-collection agency has contacted me — is it genuine?, How do we avoid making difficulty worse with quick-fix borrowing?, Should I borrow more to cover a missed payment?.

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