Merchant cash advance companies, including Yellowstone Capital LLC, are increasingly having to worry about merchant fraud. What typically happens is that scamsters posing as merchants defraud the lending companies by borrowing money but never intending to pay it back. This fraud can take on many variations, and the damage can be very severe to the victim, which in this case is MCA lender.
Schemes to defraud merchant cash advance lenders often involve using false documentation to appear as a creditworthy. Once the fraudsters get the money, they run off with it and never pay it back. Some perpetrators get the cash advance from the lender, and then claim to go bankrupt, going so far as to bring in a debt consolidator to manipulate the lender into reducing the monthly payments. Other perpetrators of these scams steal other people’s identities. Once they secure a cash advance under the fake identification, then they are off the hook for paying it back, leaving some unknowing victim to deal with the mess.
These and other types of fraud against MCA lenders, like Yellowstone Capital LLC, can have a far reaching negative impact on a company, many times driving the company out of business. Yellowstone Capital LLC has committed itself to combating this type of fraud against lenders by working closely with ISO’s, using the latest technology, and by doing its homework. It is
Yellowstone Capital LLC’s goal that the money it provides goes to honest business owners with real business aspirations - NOT to fraudsters, criminals, and people with malicious intent.