Business finance scams: the warning signs, and how we behave
The most common business finance scam is simple: someone promises your company money, then asks you to pay first. Real funders take their costs out of the deal or build them into the price. They don't ask for a deposit before you've seen an agreement. If a "funder" wants money up front, stop.
The warning signs
1. A fee before the finance
An "arrangement fee", "insurance bond" or "release fee" that must be paid before the money arrives is the classic pattern. The British Business Bank describes fraudsters who pose as linked to it, ask for an upfront fee, then become uncontactable once it's paid. A fee paid to a personal account, or by gift card, crypto or a payment app, is a near-certain sign.
2. Someone "from the British Business Bank"
The British Business Bank says it, and anyone associated with it, "will never request you to pay or transfer money by online payments or wire transfer". It warns that fraudsters have used its staff's names and photos on fake social media accounts. If someone says a government scheme needs a payment from you before the money is released, treat it as a scam.
3. Someone "from HMRC"
HMRC only emails about rebates, or asks for personal or payment information, from addresses ending hmrc.gov.uk, and never sends a rebate notice or asks for personal or payment information by text. A message offering "tax relief finance" with a link to click is not HMRC.
4. Approval promised before anyone has looked
A real funder can't promise approval until it has seen your bank statements and run its checks. Certainty, especially alongside a fee, is a red flag, not a selling point.
5. Pressure
"This offer expires at 5pm." "Pay today to hold your slot." Pressure exists to stop you checking. A real offer survives a night's sleep and a call to your accountant.
6. Cloned firms and fake approval letters
Clone firms copy the name, address and Firm Reference Number of a real FCA-authorised firm. The FCA's advice is to check the FCA Register and use the phone number and email shown there, not the contact details the firm gives you. The same goes for official-looking "approval letters" with a fee due before release: check the company's details independently, not from the letter.
7. Requests for your bank login
No funder needs your online banking password or a one-time code. Statements, yes. Login details, never.
How Ask Sterling behaves
- We never ask you for a fee, a deposit or a payment of any kind.
- We never ask for your bank login, passwords or one-time codes.
- Your enquiry goes to one named partner only: Abbey Road Capital Ltd / SOJA Ventures (see who you'll speak to). If someone else rings saying they got your details from Ask Sterling, they didn't get them from us.
- Our only email address is mike@optimax-ai.com. If you're unsure whether a message really came from us, email that address and ask.
Where to report a scam
- England, Wales and Northern Ireland: report fraud to Report Fraud (previously Action Fraud) online or on 0300 123 2040.
- Scotland: report it to Police Scotland on 101.
- A cloned FCA firm, or a firm you're unsure of: call the FCA on 0800 111 6768.
- Fake HMRC messages: forward emails to phishing@hmrc.gov.uk and texts to 60599.
- If you've already paid: call your bank straight away. The British Business Bank's advice is to tell your bank you've been a victim of fraud so it can try to recover the funds.
- If it used our name: email us too, so we can warn others.