Spot Scams: How to Recognize and Avoid Lending Fraud

Avoid lending scams by recognizing critical warning signs like guaranteed approval offers, upfront fee demands, and unsolicited loan contacts that signal fraudsters attempting to steal your money and personal information. Legitimate lenders never promise loans without credit checks, require advance payments before funding, or pressure immediate decisions—understanding these red flags combined with proper verification steps protects you from the $12.5 billion Americans lost to fraud in 2024 alone.

As founder and CEO of Complete Controller, I’ve spent over 20 years guiding businesses through complex financial decisions, witnessing firsthand how lending fraud devastates both personal and business finances. Just last quarter, I helped a manufacturing client recover from a sophisticated business loan scheme that cost them $47,000 and nearly destroyed their credit rating—yet every warning sign was visible from day one. Through this article, you’ll gain the knowledge to spot these red flags, verify legitimate lenders, and protect your financial future using proven strategies I’ve developed while helping hundreds of businesses navigate the lending landscape safely.

What is lending fraud, and how do you avoid it?

• Avoid lending scams by verifying lender credentials, recognizing red flag behaviors, and never paying upfront fees
• Legitimate lenders maintain state licensing, provide transparent terms, and deduct fees from loan proceeds
• Warning signs include unsolicited offers, pressure tactics, wire transfer requests, and too-good-to-be-true rates
• Protect yourself by researching through NMLS database, reading all contracts, and trusting your instincts
• Report suspected fraud immediately to FTC and state authorities to prevent further losses

Understanding the Lending Fraud Landscape: What Scammers Don’t Want You to Know

The lending fraud industry has transformed into a sophisticated operation targeting desperate borrowers through multiple channels and increasingly convincing tactics. Consumer fraud losses jumped 25% in 2024, reaching $12.5 billion total, with the percentage of fraud victims who lost money increasing from 27% to 38% year-over-year according to the Federal Trade Commission.

Modern scammers leverage artificial intelligence to create believable phishing emails and generate deepfake celebrity endorsements for fraudulent investment schemes, making detection more challenging than ever before. Investment scams alone caused $5.7 billion in losses, with 79% of victims losing money at median losses exceeding $9,000 per person.

The psychology behind lending scams

Fraudsters specifically target individuals facing financial stress, knowing that desperation can override normal caution and critical thinking processes. They craft messages that promise immediate relief from mounting bills, poor credit scores, or business cash flow problems.

How AI is changing the scam game

Advanced technology now allows scammers to create convincing fake documents and impersonate legitimate financial institutions with unprecedented accuracy. These tools help fraudsters bypass traditional detection methods that consumers once relied upon for protection.

Red Flags That Scream “Lending Fraud”: Warning Signs Every Borrower Must Know

Recognizing the warning signs of lending scams can save you thousands of dollars and protect your credit rating from devastating damage that takes years to repair. Mortgage scam reports have exploded 407% since 2022, growing from 14 monthly reports to 71 per month by 2025, with victims averaging $16,829 in losses when fraud succeeds.

Guaranteed approval and no credit check claims

Legitimate lenders always review creditworthiness before approving loans, making guaranteed approval promises an immediate red flag for potential lending fraud. Real financial institutions have regulatory obligations to assess borrower ability to repay, which requires examining credit history, income verification, and debt-to-income ratios.

Upfront fee requests and wire transfer demands

Real lenders deduct fees from loan proceeds rather than demanding advance payments through untraceable methods like wire transfers or gift cards. Any request for payment before receiving loan funds violates federal law and indicates fraudulent intent.

Watch for these specific payment red flags:

• Demands for wire transfers to personal accounts
• Requests for gift cards or cryptocurrency payments
• Instructions to send money through apps like Zelle or Venmo
• Requirements to pay “processing fees” before approval
• Claims that upfront payments will improve your approval odds

Pressure tactics and limited-time offers

Scammers create artificial urgency to prevent victims from researching their legitimacy, using phrases like “act now” or “offer expires today” to force quick decisions. Legitimate lenders understand that borrowing decisions require careful consideration and never rush applicants through the process.

The Complete Controller’s Guide to Verifying Legitimate Lenders

Drawing from decades of financial consulting experience, I’ve developed a systematic approach to verifying lender credibility that has protected countless clients from sophisticated fraud schemes. Small business lending fraud increased 13.6% year-over-year in 2023, with only 27% of fraudsters caught during loan origination—down from 32% in 2022.

Using the NMLS consumer access database

The Nationwide Multistate Licensing System provides the most reliable method for confirming lender licensing and regulatory compliance across all states. Every legitimate mortgage lender, loan originator, and many consumer lenders must register with NMLS and display their unique identifier.

Checking physical business locations and contact information

Legitimate lenders maintain verifiable business addresses and professional contact methods that can be independently confirmed through state records. Verify physical locations through Google Street View, check state business registrations, and confirm phone numbers match official listings rather than temporary VOIP services.

Researching better business bureau ratings and customer reviews

Multiple review sources provide insight into lender reputation, but be wary of fake reviews designed to boost scammer credibility. Cross-reference BBB ratings with state attorney general complaints, CFPB databases, and industry-specific review platforms for comprehensive reputation assessment.

Protecting Yourself from Fake Loan Schemes: A Step-by-Step Defense Strategy

Developing a systematic approach to loan shopping provides multiple layers of protection against increasingly sophisticated lending fraud attempts targeting both individuals and businesses. With 64% of lenders expecting fraud to continue growing, proactive defense strategies become essential for financial safety.

The three-lender comparison rule

Always obtain quotes from at least three legitimate lenders to establish baseline terms and identify offers that seem suspiciously favorable or unfavorable. Document each lender’s terms, fees, and requirements in writing to create clear comparison points that reveal outlier offers, potentially indicating fraud.

Documentation verification and contract review

Thoroughly examine all loan documents for inconsistencies, unclear terms, or missing information that could indicate fraudulent lending practices. Pay special attention to:

• Company names matching across all documents
• Physical addresses aligning with verified locations
• Phone numbers connecting to actual business lines
• Email addresses using professional domains
• Clear identification of all fees and charges
• Specific repayment terms and schedules

Safe communication and information sharing protocols

Never share sensitive financial information through unsecured channels or with lenders who contacted you first, rather than responding to your inquiry. Establish communication through official channels only, using encrypted portals for document submission and avoiding text message or social media interactions about loan details.

Case Study Analysis: Real Victims, Real Lessons from Recent Lending Fraud Cases

The Federal Trade Commission’s 2025 action against Accelerated Debt Settlement reveals how sophisticated lending fraud operations target vulnerable populations, including seniors and veterans. This $100 million scheme used multiple deceptive tactics, including impersonating banks, credit bureaus, and government agencies, to collect illegal advance fees while promising impossible debt reductions.

Key tactics used by the accelerated debt scammers

The operation combined telemarketing with direct mail and online advertising to reach potential victims, then used high-pressure sales tactics and false impersonation to extract advance fees. Scammers posed as representatives from major banks, the Social Security Administration, and credit bureaus to build false credibility.

Financial impact on victims

One Army veteran lost $13,000 and watched his credit score plummet from the high 700s to the 500s, nearly losing his security clearance and employment. Another disabled veteran was forced to drain his savings and retirement funds after paying nearly $10,000 in advance fees for debt relief services that never materialized.

Regulatory response and consumer protections

The FTC’s swift action resulted in asset recovery for over 7,000 victims, demonstrating the importance of reporting suspected fraud to federal authorities. This case highlights how regulatory agencies can intervene when consumers report suspicious activity promptly.

Building Long-Term Safe Lending Practices for Individuals and Businesses

Establishing systematic lending practices provides ongoing protection against evolving fraud tactics while ensuring access to legitimate financing when needed. Throughout my career helping businesses secure proper financing, I’ve seen how preparation and knowledge serve as the best defense against sophisticated scams.

Creating a personal lending safety checklist should include:

• Pre-approved lender lists from trusted sources
• Standardized verification procedures for new lenders
• Red flag identification protocols
• Documentation requirements before sharing information
• Cooling-off periods for major financial decisions

Professional financial guidance can provide an objective evaluation of lending opportunities and help identify potentially fraudulent offers that emotional decision-making might miss. At Complete Controller, we’ve developed comprehensive verification frameworks that have saved clients millions in potential fraud losses over the years.

Final Thoughts

Avoiding lending scams requires vigilance, systematic verification, and understanding that legitimate lending follows predictable patterns that scammers cannot replicate. Throughout my two decades as CEO of Complete Controller, I’ve learned that the best defense against lending fraud combines education with healthy skepticism and professional support.

The data speaks volumes—with fraud losses reaching $12.5 billion in 2024 and mortgage scam reports growing 407% since 2022, protecting yourself has never been more critical. Real lenders are licensed, transparent about terms, and never demand upfront payments or guarantee approval without a proper credit review.

When doubt creeps in, take time to research and verify rather than rushing into decisions you might regret. Your financial future depends on making informed choices backed by proper due diligence. For expert guidance on business financial management and comprehensive fraud protection strategies, contact the experienced team at Complete Controller today.

Frequently Asked Questions About Avoiding Lending Scams

How can I verify if a loan company is legitimate before applying?

Check the lender’s license through the NMLS Consumer Access database, verify their physical business address, research Better Business Bureau ratings, and confirm they have proper state licensing through your state’s banking regulator website.

What should I do if I have already sent money to a suspected scam lender?

Contact your bank immediately to report the fraudulent transaction and request a reversal, file a complaint with the Federal Trade Commission at ReportFraud.ftc.gov, notify your state attorney general’s office, and freeze your credit reports to prevent identity theft.

Are all online lenders potential scams I should avoid?

Many legitimate lenders operate primarily online, but digital platforms require extra verification, including checking NMLS registration, reading multiple customer reviews across different platforms, and confirming the lender has been in business for several years with consistent contact information.

Do legitimate lenders ever ask for upfront fees before giving me a loan?

Some legitimate lenders charge origination or application fees, but these are always deducted from your loan proceeds at closing, never required as advance cash payments, wire transfers, or gift cards before loan approval or funding.

What’s the difference between predatory lending and outright lending fraud?

Predatory lending involves legal but unfair loan terms like excessive interest rates or hidden fees that trap borrowers in debt cycles, while lending fraud involves criminal deception where scammers steal money with no intention of providing any actual loan services.

Sources

• RBC Royal Bank. (March 4, 2025). “Top Scams of 2025: What to Watch For.” My Money Matters.
• Inscribe AI. (June 19, 2025). “12 Common Red Flags for Loan Application Fraud.” Inscribe Blog.
• Los Angeles County Department of Consumer and Business Affairs. (July 6, 2019). “Avoiding Predatory Lending and Getting a Good Loan.”
• Mississippi Department of Banking and Consumer Finance. (March 12, 2009). “Consumers Beware of Fraudulent Advance-Fee Loans.”
• Federal Trade Commission. (July 21, 2025). “FTC Halts Illegal Debt-Relief Operation that Falsely Impersonated Businesses and Government.” FTC News.
• Union Square. (2025). “How to Spot and Avoid Loan Scams Online.” Fraud Prevention Center.
• Nav. (April 15, 2025). “Check To See if Your Loan Company Is Legit.” Nav Blog.
• Credit Ninja. (May 21, 2025). “How to Check if a Loan Company is Legitimate.”
• Federal Trade Commission. (March 10, 2025). “New FTC Data Show a Big Jump in Reported Losses to Fraud – $12.5 Billion in 2024.” FTC News Release.
• BackOffice Pro. (May 9, 2025). “Mortgage Scam Statistics 2025.” BackOffice Pro Blog.
• LexisNexis Risk Solutions. (August 6, 2025). “2024 Small Business Lending Fraud Study.”
• Center for Responsible Lending. (February 6, 2025). “Down the Drain: Payday Lenders Take $2.4 Billion in Fees from Borrowers in One Year.”
• Federal Trade Commission. (July 21, 2025). “FTC Halts Illegal Debt-Relief Operation that Falsely Impersonated Businesses and Government, Harming Consumers.” FTC Press Release.
• NMLS Consumer Access. www.nmlsconsumeraccess.org
• Federal Trade Commission. www.ftc.gov
• Wikipedia. “Mortgage Fraud.” en.wikipedia.org/wiki/Mortgage_fraud

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Reviewed By: Brittany McMillen

Brittany McMillen

Brittany McMillen is a seasoned Marketing Manager with a sharp eye for strategy and storytelling. With a background in digital marketing, brand development, and customer engagement, she brings a results-driven mindset to every project. Brittany specializes in crafting compelling content and optimizing user experiences that convert. When she’s not reviewing content, she’s exploring the latest marketing trends or championing small business success.

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A mortgage is an interest for land made by an agreement, not an advance. Albeit practically all home loan arrangements contain a guarantee to reimburse an obligation, a home loan isn’t an obligation by and in itself. Here is everything you need to know about mortgage loans.

Reverse Mortgage

The reverse mortgage, although unknown to many, has been popularizing in recent years. It is a formula for the elderly to supplement their pension through a mortgage on their house.

The owner of a home free of charge will ask an entity for a loan with a property as collateral. In exchange, the bank will pay month after month an agreed amount during a period. Once the time comes to finalize the mortgage payment, the client will have two options: return what has been paid or give the property to the lending entity.

Bridge Mortgage

Through the bridge mortgage, the client can obtain financing to acquire a second property. This type of loan is usually requested among families looking for a better home and still paying the previous mortgage. Through this product, the client will have the possibility of having both mortgages (that of the old house and that of the new one) until the first house is sold.

With this, the mortgaged will only have to pay a single fee and not face two different loans. Of course, we will have to assume the commitment to sell the old home in a specific period that will be agreed with the entity.

Subrogated Mortgage

When the mortgagee wishes to improve their loan and reduce their amount owed, they can go to another financial institution and get more favorable loan conditions. It is known as subrogation for bank change.

For this, the client must visit another lender that delivers a binding offer. If the mortgage payor considers it better, the loan’s subrogation will be signed before a notary, paying the new bank the outstanding debt and becoming the mortgaged one’s new debtor.

With this change, the client can benefit from a change in the operation’s conditions and the repayment period without incurring taxes. However, it must assume the expenses that this operation implies, such as notary, agency, or registry, among others.

Multi-Currency Mortgage

The multi-currency mortgage is a type of loan with the same characteristics as a normal mortgage loan. The only difference is that it allows the currency to change the outstanding debt at certain agreed time moments.

In general, stable currencies with low-interest rates such as the yen, Swiss franc, American, Australian, or New Zealand dollar, sterling, and the euro are usually used. Although paying the mortgage with interest from other countries may be cheaper on certain occasions, the fact is that fluctuations can seriously affect the mortgaged if you do not know the foreign exchange market. If the currency to which the mortgage is referenced is revalued, the outstanding capital could increase.

Debt Reunification

The reunification of debt does not imply the sale of a property by the mortgaged party. With this product, what is sought is to pay the installments of several debts and loans in a unified manner by guaranteeing a home free of charges.

The client will pay a single mortgage payment through two options: increasing the amortization period of the mortgage loan that he already has subscribed to or asking his entity for a mortgage on a home he already has to pay off his debts.

In the first case, you must renegotiate with your bank to extend the maturity term and assume that the monthly fee will be somewhat lower to deal with it more easily. In the second, the client will choose to mortgage his house to cancel the debts he already owns. In return, you must pay a monthly fee to the bank during the period you agree with the entity.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Many people have gifts and talents they are either not using or are underutilizing. When we get a job, we will use skills and talents, but we are often not using all the skills and talents we have. This can lead to complete dissatisfaction in your work because you aren’t getting to use all the skills, gifts, or talents you have. While work is about earning an income and generating revenue, there is more to it than that. It’s about earning a living doing what you love, and if you aren’t using all you have to offer, you may never enjoy what you do.

It is not suggested that you quit your bill-paying job. However, you can use your gifts, talents, and skills to earn extra income. Here are six ways to use your gifts, talents, and skills to earn extra income.

Create a YouTube Channel

Create a YouTube channel to share your knowledge on a specific topic and earn money. Having a channel is not synonymous with becoming a famous YouTuber that will have mass influence. If you don’t know how to start, it’s easy since, on the YouTube page, you have a whole tutorial on how to start your channel. Before opening your channel, you must be clear about the subject you’ll present based on your content creation. You must find your niche and stick to that to get a following that will help you earn a living.

Start Your Blog

You might not like the idea of making a video about your skills because you don’t like being in front of the camera. If this is the case and writing is your thing, you always have the option to write. The way to get money through a blog is through advertising on your blog. As with a YouTube channel, you should look at the steps to starting a blog through a tutorial (or two), so you can hit the ground running.

If you are good with being on camera, you can do both a YouTube channel and a complimenting blog. This will increase your chances of becoming an influencer and gaining more income if you monetize them both.

Create an Online Course

If you have a gift, talent, or skill that you can teach to others, there are platforms where you can create an online course. This course is different than doing YouTube tutorials, this will be an online curriculum you create that can include videos, but it is more in-depth with modules and calls to action to check for understanding.

When choosing the subject, make sure it is a subject that others are seeking. Do your research and make sure you know everything there is to know about the subject you are teaching.

Create an E-Book

If you are a good writer, you can take that skill further than a blog and create an e-book. E-books can be how-tos, or they can be entertaining. The ideas and lengths for your e-books are endless. If you can produce content quickly and research subjects that are the most sought after and fun.

Tutor Online

Online learning is growing more and more popular. If you have a skill or a lot of knowledge on a subject or many subjects, you can offer to tutor online. You can also offer it in person at a community center, library, or in your own home.

Become a Guide

People love to go on guided tours of interesting areas with someone that knows what they are talking about because it enhances the experience. If you are a photographer, you can add to the experience by taking photographs to provide them with a guided tour and amazing photographic memories.

Conclusion

Earning extra money with your gifts, talents, and skills requires effort and time invested, but it will strengthen your income while giving you a sense of satisfaction. Once you start earning the extra income, all you need to decide is where to use the money.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

The restaurant business is perhaps one of the riskiest businesses to invest in all the business markets. Business owners who decide to open a restaurant choose to do so because they have a passion, if not because they are a glutton for punishment. While owning and operating a restaurant is a high risk for those who have a passion for it, if successful, can have a fulfilling business for years to come. Here are seven ways to make your restaurant a success.

Increase Customers

The most obvious thing to do is to increase customers to generate more sales. To do this, you have to use every marketing strategy available. Most important is the use of social media and technology. Promote offers and let people have a look inside the restaurant through social media. Create brand awareness and increase the use of engaging and quality content. Provide people with discount coupons and offer take-out and delivery options. If your restaurant has a unique dish or something that makes you stand out from other restaurants, make sure to feature these highlights on your website and social media prominently.

Upsell

Encourage people to spend more by asking them about the options available. You can recommend appetizers or specialty drinks during the initial ordering stage while they wait for the main course. You can also offer dessert as you drop off the ticket for payment, advising you can easily add to the ticket. Recommend a hot seller while you’re at it and always let customers know your favorites when pushing additions. The point is to try to get people to order more by asking. If the restaurant is full, each table ordering something more expensive or something extra can take the sales to a whole new level. Train the staff to persuade through the tone and knowledge while keeping it soft to alienate the customer.

Provide an Appealing Atmosphere

Restaurants must provide an aesthetically beautiful environment and maintain hygienic standards. The tables should be cleaned as soon as the customers leave. Bills should be collected promptly to encourage table turnover. It is also important that the staff is well dressed and clean, keep extra uniforms and aprons on hand for unexpected wardrobe issues such as spills or damage.

Properly Train Your Employees

Restaurant employees reflect everything about the restaurant itself. Restaurant staff should be well dressed as well as well-mannered and professional. Make sure whatever the customer says, the staff behaves properly. Your staff is dealing with customers in real-time and face to face, so if one bad thing happens, word of mouth can spread like wildfire. This could be a potentially devastating problem with smartphone innovations having the ability to film or give the users the instant capability to go online and spread the word.

Create Repeat Business

The biggest key to success for every business is retaining the customers it has.  Restaurants need to make a good impression on customers to keep them coming back. Make sure the order delivered is accurate and make the customers feel at home. To attract customers who are dining in, provide them with exclusive discount coupons or free delivery on the first order. Always greet every customer with a warm, friendly smile and provide timely delivery.  Retaining customers can increase sales by 25-125%, according to a Harvard study.

Utilize Social Media

Advertising on social media can take your sales to higher places with little to no cost. Utilize social media to highlight the restaurants’ menu and atmosphere. Have a review button and encourage customers to leave a review to let people know what others say. These reviews can help influence others to try your restaurant when they are looking for dining options in your area.

Stay on Top of Technology

Technology is important to every business; restaurants are included.  Studies suggest that people feel more satisfied and comfortable if they order through the app or online because apps and online purchasing increase the order’s convenience and accuracy. About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

People who want to become rich faster need to find new ways to earn while holding on to the money they already have. However, that’s not enough. To grow money, a person needs to make smart investments.

Being a smart investor, it is important to invest in things that will offer a reasonable return. A great investment can offer interest and dividends from savings, real estate, etc. To become a successful investor, a person must be fully devoted and focused. Thanks to advance investment options, now a person can start investing with a little as ten dollars. Here are some essential tips for investing everyone should know.

Why Should You Invest?

The main reason to invest is related to the growth of money. Investing allows a person to earn potential compound returns. Thanks to the compounding, a person can earn a million-dollar by just investing one. People who make smart investments are often richer as compare to those who don’t.

Investing sounds a lot more intimidating than it is. Even though every kind of worthy investment has some risk, there is always a larger portion to gain. Investing can be scary, especially if the person is new. Below are a few smart ways to make money grow through investing.

Risk Vs. Reward

It’s no secret, investing comes with a risk. Everyone knows somebody who lost all of their money investing in the wrong places. Some people lost money due to bad decisions, other losses due to scams. However, if invest wisely, a person can reduce risk. The best part about investing young is that a young person will likely invest long-term, for example, a retirement account. Such investments aren’t only less risky but also give bigger benefits. Investing can be risky and scary at times, but a person who never took a risk never did anything.

Where Should You Invest?

Choosing what to invest in can be tricky, especially if the investor is new. There are many investment options available in the market today. Below are a few worthy investing options that one can consider:

Mutual Funds: In this type of investment, an investor will pool a person’s money with other investors. The fund manager will utilize that amount to buy a security for the whole group. According to experts, new investors should invest in mutual funds rather than individual stocks due to the low-risk factor.

Mutual funds allow a person to invest in a huge portfolio regarding stocks rather than just relying on one stock. They aren’t only safer but also require fewer investments. Buying mutual funds through a fund company such as Fidelity will save a lot of money on trade commission; however, mutual funds can also be purchased through any brokerage account.

Retirement Accounts: To save for retirement, IRA gives a certain amount of tax-related advantages. The downside comes depending on how much a person can fund that account yearly and when they can withdraw the money.

Traditional IRA: With such types of accounts, a person’s contributions can qualify for deductions on their tax returns. With, that there is a potential that those earning will also become tax-deferred until a person’s retirement age.

Real Estate: No doubt investing in real estate can change a person’s life in days. Investing in real estate is a long-term process, and a person can also choose to rent their property for monthly rent. The best part about real estate is that with time, the property’s value will only go up with the rent. However, just like any other investment option, real estate also has a few risks that a person should consider before investing.

Conclusion

There is no question that you should be investing your money. Investments are a way to secure your future and ensure that you can retire with ease. It is a matter of learning how and where to invest. If you aren’t comfortable making investment decisions on your own, you can always hire a professional to help you make the best investment choices for you.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

If you need to earn extra income and have a guest room or guest space on your property, and it is not being used regularly, you should consider renting the space for a great passive income. This type of space rental has become a popular alternative that vacationers or those traveling for business are taking instead of getting a hotel room. Renting a room with access to a shared kitchen, living spaces, and sometimes a yard or pool can be a more relaxing way to spend time away from home for travelers.

Here are five things you need to know to get renters and protect yourself and your property before you rent your space.

Unused Spaces

Unused spaces that could be used for this type of room rental could be a guest room or a suite of rooms if you have more space. This space could also be a converted attic, basement, or garage as long as it is a comfortable living space. It could also be a guest cottage or over the garage apartment. These spaces are furnished and not the same as taking on a full roommate who would pay their share of expenses and be a part of the mortgage or lease. This space in your home should be similar to a bed and breakfast though breakfast is not mandatory.

 

Spread the Word

You can use your social media platforms and the word of mouth of friends and family to help get the word out about your rental space. There are also several websites specifically dedicated to this type of space rental. You can include information about the property, what is and is not allowed, and the price per night. You can also include pictures of the space to entice potential customers further to rent your space. Though you could do it directly through ad sites like Craigslist or word of mouth, it is recommended you use these rental websites as they are designed to protect both users.

Safety Measurements

Safety and financial protection need to be the focus of this type of rental. If you do not use a website with built-in protections, you should consider the following to be on the contract.

 

• The amount and when it is needed to be paid
• The advance payment (if there is any)
• The move in and move out dates
• What is included with the rental fee
• Pet agreements if pets are allowed
• Any additional house rules the landlord wants to be noted

 

Setting the Price

When setting the price, you must look in the market in your area and set your prices comparable to what is being charged for similar rentals. If you don’t have comps in your area, you can look in other areas to get an idea. Also, you need to factor in what you need to make for it to be profitable. Even if it is slightly higher than the market, you need to profit; otherwise, why have the rental?

 

Rental and Homeowners Insurance

Rental insurance is compulsory if any damage occurs, such as rain, flood, fire, etc. You must contact your homeowner’s insurance company and ensure that your insurance will cover it if something happens to the patron while they are on your property. If not, you need to find out what you need to add to cover you and your property against liability. Renters insurance may also be a possibility; however, you need to factor the insurance cost into the price you set for the room per night.

 

Conclusion

Renting out space in your home for extra income can be profitable, but it will take some work, safety measures, and financial protections on your part as the landlord. You should only consider this endeavor if you can profit and if you really like people because you will be interacting with strangers in your home.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

By not emitting toxic waste and being ecologically aware, positive energies have an important role in pursuing sustainable energy development. But to what extent can small businesses benefit from these advancements in positive energies?

There are many things to consider when deciding whether to invest your company’s money in renewable sources of positive energy. However, most companies find that the expense upfront to implement positive energies is well worth the savings for years to come. Here is what you need to know about positive energies.

Positive energies use renewable sources

By definition, positive energies are considered those that do not release gases or polluting residues that contribute to the greenhouse effect or global warming during the production or consumption process. Among the main forms of energy classified in this industry are the following:

• Wind energy: generated by the force of the wind.
• Solar energy: generated by the incidence of solar rays
• Tidal energy: generated by the movement of tides in the oceans
• Hydroelectric energy: generated by the hydraulic potential of a river
• Biofuels: highlighted by ethanol produced from sugarcane and corn; and biogas, generated by the decomposition of organic matter.

The Challenges for Small Businesses

When it comes to small businesses, the main challenge is to reduce carbon emissions and still have competitive prices. That is why it is necessary to evaluate each company’s energy potentials calculating the expected time for the investment return.

The advice is to transition without advancing more than the company accountant feels doable. In this case, the investments and changes should be gradual, modular, and scalable investments. Change one energy source at a time, in small steps. For companies that generate organic effluents, it is worth betting on a small scale on energy recovery as a reactor and small size boilers.

The electricity usage within an office often consumes many of the company’s budget, and renewable energy can help reduce these expenses. How is it possible? According to recent research, companies buy renewable energy of around 13.4 gigawatts from long-term contracts’ earned income. This purchasing amount becomes double as they bought that energy a year before.

The majority of businesses take care of the private resources on their property that generates renewable energy. Now, the question is, what is the reason that businesses prefer renewable energy? With it, they can gain numerous environmental benefits and save money. Those benefits can be a reduction in electricity bills, secure fluctuations in costs, advanced initiatives that make energy-efficient, energy selling to the grid as an ability, timeless reliability, green energy incentives, authoritative efficiency, and improved investors’ status for clients in terms of reputation and confidence. It also helps you in taking minimum risks that will have long-term benefits.

Energy bills being a high expense when running a business can significantly strain the company budget.  Only the integration of renewable energy in the form of the wind turbine, solar panels, power operation’s usage, and other forms of renewable energy can reduce the cost of energy bills. The cost of energy fluctuates because energy transmits variations influenced by current energy prices. You don’t need to worry about electricity fluctuations if you have renewable energy resources.

Some companies wish to go green and use it as renewable energy with initiatives. They use it as a reduction in energy use. You can save more money on energy bills by enhancing energy efficiency and pairing renewables.

Finally, it is worth remembering that, in addition to the long-term cost-benefit, it is possible to cite, as advantages for the small business owner, the possible fiscal incentives and economic benefits that many governments offer to those who adopt alternative energy production. Depending on the country’s legislation, it is also possible to sell surplus energy to the electricity grid.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Every adult that has purchased anything on credit has a credit score. Your credit score gives you buying power when it comes to homeownership or financing a vehicle. It can also affect what you pay for internet and phone services, utilities, and insurance. There are even some companies that require a certain credit score to be employed with them. A high or low credit score can be the difference between a great job and a good lifestyle and higher interest and debts.

Because there is such importance placed on your credit score, you must know what yours is and how to get it higher and keep it there. Here are five things you can do to repair, raise, or maintain your credit score.

Credit Cards

When it comes to your credit score, a credit card can have a large positive or negative impact on your credit score. Most people carry at least one credit card though it is suggested that you avoid having one altogether if possible. If you feel you must have a credit card, here are a few things to keep in mind.

• Don’t get a credit card with a high-interest rate
• Don’t have more than one credit card
• Make more than your minimum payments
• Always keep the balance lower than 10% of your limit
• Make them a priority to pay off before no to low-interest loans or payments
• Only use your credit card for emergencies

Avoid Debt

While it is understandable that most people don’t have enough cash on hand to purchase a home or car without a loan, you should avoid purchase on credit as much as possible. When you do need to carry a loan, here are a few things to consider.

• Shop for lenders
• Get the lowest interest rate possible
• Borrow from a friend or family member to avoid interest
• Pay more than the minimum payment
• Make these loan payments a priority
• Pay them twice a month if possible

Stop Applying

Many people don’t realize that every time you apply for a credit line, whether a loan, a rental application, or a store credit card, those applications initiate a hard credit check. Every hard credit check lowers your credit score. So if you are car shopping or trying to get a discount on our purchase by applying for the store credit card, you are lowering your score. Here are some things you can do to avoid this.

• Don’t apply for cards or store credit; you don’t need to get a discount
• Go to your bank or a lender and obtain preapproval for a car or home loan before shopping
• Use websites that do not affect your credit score to check your score and know what it is before applying for lines of credit

Dispute Your Credit Score

Many people think their credit score is etched in stone and cannot be changed until the credit falls off. While it is true that after seven years old debt falls off, there are also times when items on the credit report don’t belong there. Here are some things you can do to get bad debt removed from your credit score.

• Dispute old debt that is still on your report after seven years
• Dispute any debt you don’t recognize
• Pay off any debt that is still on your valid credit report

Pay Bills on Time

While financially responsible working adults should pay all bills on time, it is especially true of those bills that will lower your score if paid late. When prioritizing your bills, you should make those bills with high-interest rates and attachments to credit reporting a priority. Here are a few other things to keep in mind when paying your bills.

• Pay more than the minimum payments on bills with interest
• Check to see if any of your utility or service bills can be attached to your credit score for paying on time
• Make double payments per month on bills with interest

Conclusion

These are five areas of focus that will improve your credit score if you apply them. Knowing your credit score and how it affects your financial health should be a priority to every financially responsible working adult.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Do you want to improve the management of your company? Are you worried because the administration of your business becomes more and more complex? Business management is undoubtedly one of the most important aspects that must be considered to have good profitability, competitiveness, and productivity.

To improve these variables, we must take advantage of new technologies in the cloud to manage practically and effectively all aspects of our business, considering that automation, simplification, standardization, connection, and visualization are the essential elements for doing it. Here are five keys to online business management.

1. Automation

What is automation? It takes a manual operation or task and uses machinery or computer systems to accomplish the operation or task automatically. The common tendency is to think that when we do not control something, when we are not on top of it, many errors can occur, and then we will have to pay the consequences. However, we automate many things in our lives. No doubt, many business management aspects are automatable and would make our business much more efficient than if we do everything manually.

2. Simplification

Simplification consists of doing what has thus far involved a lot of work and finding ways to make it easier. When we simplify, we reduce the time we spend on a task because it is now more comfortable and easier. It is about doing in one step what we used to do in three or four. For example, we can save many operations through online management software that we would have to do manually in Excel.

3. Standardization

Standardization assumes that we no longer have to work unplanned, but with a thought out system. And a system in which, thanks to automation, things are done according to patterns and in a much more practical and effective way. All businesses need to standardize certain tasks, such as locating products through labels, to charge them without entering the computer’s data.

4. Connection

The connection between programs is another aspect that is most important when we talk about online management. And some companies tend to use different software that does not interact with each other to do different actions, such as accounting and business management. But all this can and should be done from the same Enterprise Resource Planning software that includes everything so that the information does not have to be duplicated.

What do we get when there is a connection between programs or when we use a single program with interconnected modules? We have much less work to do because the data is registered once, and they are already accessible to all the users we want so that everyone can work with that data if they need it.

In the case of online stores, for example, it is somewhat paradigmatic. It is very much to have Enterprise Resource Planning software connected to your online store, so you do not have to be registering invoices, products, and everything related to your online business.

5. Visualization

About visualization, we believe that it is also a key element for the management of a business. And it is that the data alone does not help us have an overview of what is happening in our company. We need graphs and reports to visualize how our business will obtain comparative information between months, years, or quarters.

Having a dashboard in your Enterprise Resource Planning software can be a great utility for you to control the different variables that influence your business and also see if your business performance indicators indicate that your company is growing.

Conclusion

Business management is not something any business owner can take lightly. Many factors go into managing a business, and using an online management system can make managing your business easy.

 

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Working from home is amazing. It offers many benefits of flexible working hours, favorite sleep-wake cycle, working in pajamas, and so much more. But, does the home environment bring out all the potential of a person? Most people tend to become lazy at home because of the coziness that the home atmosphere provides.

For many, working from home is a luxury, especially for mommies and nonsocial people. But to be productive in the home environment, certain work at home rules should be followed. Otherwise, instead of becoming a blessing, this benefit will become a detriment. Here are ten of the best work from home tips to keep you productive.

Be an Early Bird

Early to bed and early to rise makes a man wealthy, healthy, and wise. The morning time is best to work because the mind has been restarted from last night’s sleep. It is the most productive time of the day, and people who avail it are more productive than the late risers. That’s the reason why offices, schools, colleges, etc. open at 8 or 9 a.m.

Set the Work Hours

Home chores don’t end ever. A person needs to set working hours and pretend to be in the office in those hours – saying goodbye to the housework. This will help to achieve the goals faster. An individual should work like the manager is watching them during those hours. Set the schedule and stick to it.

Make a Work Space

A person should not work in the space he sleeps because that environment is too comfortable to work and makes an individual sleepy. Dedicating a special place in the house for working has helped many in completing their day-to-day task. Set a special place and decorate it accordingly to become more productive.

Take Breaks Often

Take a break often like a tea break or a lunch break, and don’t stress about work during that time. These breaks will work like boosters and refresh the mind in no time. One can take a home chores break as well to complete the work that is bugging the mind.

Don’t Use Social Media

Nothing kills time better than social media. Don’t give time to social media at all when working. Keep the cell-phone away when it is possible. If social media becomes necessary, don’t get on it and explore; do the task and leave that platform. 

Commit to the Work

The project doesn’t need to get completed in the time a person sets. That’s why most of the work remains incomplete.  A person must complete the goal at home even when the set time is exceeded. This will lower the next day’s burden and helps to remain up-to-date.

Identify Your Best Time of Day

No person can remain highly productive from night and day. The best time of day for the most productive work will vary from person-to-person.  Identify your most productive time of day and save your most difficult tasks to accomplish during that time. If that time of day for you is at the beginning of your workday, then accomplish your most difficult (or dreaded) task first thing.

Get Out in Public

When a person is working from home, it is important to go out occasionally; this will improve the work pace. Take the laptop out in public and work in the area where people talk, like a coffee shop, a restaurant, etc. That chitter-chatter will help the brain to work better.

One Distraction is Better than Many

One distraction helps the person to achieve the goal faster. It aids an individual to focus more and become more productive. For instance, if there’s a baby in the house and the person who wants to work has to babysit the baby, that individual will work faster whenever they get the time and be more focused.

Plan Your Day

Planning helps manage the work at hand properly. For instance, when a person plans to go shopping, the working hours should be maintained. For any new activity in the coming days, manage the timetable and set special hours to complete the project on time.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.