Loan Consultants

Archive for May, 2012|Monthly archive page

Beware of Unlicensed Biz. Opps.

In Uncategorized on May 3, 2012 at 5:42 pm

Recently, I attended an event for my child’s school and, as is normally the case, had the chance to get to know some of the other parents who attended the event. After the normal introductions and small talk the inevitable question came up, “so what do you do for a living?” The couple I was speaking with said they both worked in the medical industry. When I explained that I was a Principal of a Business Opportunity company they replied, “So, is that similar to a franchise?” As I offered a further explanation on the differences between Franchises and Business Opportunities I decided that this might be a viable blog topic.

It occurred to me that at least part of their confusion was the result of so many unlicensed, unregistered and non-compliant companies trying to fly under the business opportunity regulators’ radar. You see, whenever the economy slows down we tend to see a flood of new schemes that pop up, all promising to make you rich. One should never assume that these companies are in legal compliance just because you got their information from a Franchise & Business Opportunity website or magazine. These websites and magazines usually do not ask for copies of licenses or registration paperwork to verify compliance before allowing companies to advertise. The result is a plethora of non-compliant companies that advertise on business opportunity websites. Many of these companies even refer to themselves as a business opportunity in their own sales materials. Then, when you ask them to provide you with the disclosure documents that ALL Business Opportunities are required to provide they say, “We are a ‘training company’ so we don’t have to do that” or “Our state doesn’t require us to give that information.” The fact is the Federal Government requires it, so they MUST provide it!

Regardless of whether they call themselves a “training company” or tell you that they have a “trademarked system”, if that company is providing you with training, support or a system to operate your own company, they are a Business Opportunity by definition and must comply with the rules established by the Federal Trade Commission.

Whether you are a candidate for The Loan Consultants, Inc. or seriously considering some other business opportunity, here are some basic signs to look for that will help you separate legitimate Business Opportunities from scams:

  • They do not provide you with the required FTC disclosure documents.
  • There is no cancellation or rescission period in their contract.
  • They require you to pay their full fee in advance, not just a deposit.
  • They advertise on Business Opportunity websites but their contract doesn’t state they are selling you a Business Opportunity.
  • They claim to be in business longer than they actually have.
  • They won’t show you their contract well in advance of being asked to sign it.
  • They claim that you will earn X number of dollars or offer you a guarantee.
  • Be wary of companies that use “Celebrity Endorsements”.

The Loan Consultants, Inc. is the nations’ oldest and largest Loan Broker business opportunity. 2013 will mark our 30th year of establishing successful affiliates in the Financial Services industry. If you are considering a career as a Mortgage Broker, Business Loan Broker or would like to add a revenue stream to your existing business I would encourage you to contact us and get our FREE information package.