Step 1: Is the company registered?
Ask for the company's exact legal name, then search the business records of the secretary of state where it says it was formed. Confirm the entity exists, is in good standing and has an address matching what the company told you. The legal name should also match the name on your contract.
- Good standing generally means the company is current on required state filings.
- Formation date tells you how long the entity has existed. A company claiming decades of experience but formed recently deserves a question.
- Registered agent is the official contact for legal notices; a registered agent service address is normal.
A brand name on a website can differ from the legal entity name on a contract. That is common, but the company should explain the connection clearly.
Step 2: Do the website, email and address match?
Type the company's web address yourself rather than clicking a link. Check that emails come from the same domain as the website, that the site lists a legal name, physical address and privacy policy, and that the address is a real business location. Free email accounts and look-alike domains are warning signs.
- Compare the sender's email domain letter by letter with the official website.
- Look for a privacy policy and terms naming the legal entity.
- Search the address to see whether it is a real office, a shared workspace or an unrelated location.
- Check whether the domain was registered very recently using a public domain lookup tool.
A professional-looking website proves little on its own; scammers copy designs and logos. Consistency across all of these details is what matters.
Step 3: What do UCC filings show?
Many state filing offices let you search UCC records by secured-party name. A funding company that actually funds businesses usually appears as the secured party on filings, which suggests real, ongoing activity. It is not proof of good behavior, and brokers may not appear because they do not file liens, so treat it as one signal.
Search the funder's legal name and common variations. Many filings over time suggest an active business; none at all from a company claiming to be a large funder is worth asking about. Our guide to UCC-1 liens explains what those filings mean.
Step 4: Are there complaints or lawsuits?
Search the company's legal and brand names alongside words such as complaint, lawsuit and scam. Check complaint databases run by consumer and business organizations, and search court records where available. Focus on patterns: one dispute is normal for any company, while many similar complaints about hidden fees or aggressive collections are not.
- Search the legal name, not only the brand name.
- Check whether complaints received responses and resolutions.
- Look for regulatory actions announced by state attorneys general or federal agencies.
- Note the dates; recent patterns matter more than old ones.
Some states require registration or licensing for certain commercial financing providers or brokers. Check with the official state agency where you do business if you want to confirm.
Step 5: How do I read reviews without being fooled?
Read reviews for patterns, not stars. Look at the most recent negative reviews, whether complaints describe the same problem, how the company responds and whether reviews name the same legal entity you are dealing with. A burst of short, vague, very positive reviews posted in a short time is a warning sign.
Also watch for review content that does not fit the business, such as praise for consumer loans from a company that only offers business funding. And remember that scammers impersonating a real company can borrow its good reviews; that is why steps 1 and 2 come first.
Step 6: Does the offer itself behave legitimately?
The final check is how the company acts. A legitimate funder or broker names who is funding you, provides the full contract to read, answers questions about cost, guarantees and default, gives you reasonable time and does not ask for any fee before funding. Failing any of these is reason to walk away.
- No upfront fee by wire, gift card, crypto or payment app.
- No promise that approval is certain before your documents are reviewed.
- No pressure to sign within minutes.
- No requests for your banking password; see connecting your bank account safely.
- Clear answers to pre-signing questions.
Apply these same checks to TrustedBizFunder and to the funding partner named in any contract you receive through us.
Frequently asked questions
Can a company be registered and still be a scam?
Yes. Registration is inexpensive and confirms only that an entity exists. That is why it is one check among several. Combine it with domain, UCC, complaint and behavior checks before sharing documents or signing.
Do business funders need a license?
It depends on the state, the product and the company's role. Some states require registration or licensing for certain commercial financing providers or brokers, while others do not. Check with the official agency in your state for current rules.
What if a company refuses to share its legal name?
Do not proceed. Any legitimate funding company or broker operates through a registered legal entity and will name it. Refusing to do so is a serious red flag.
Why would the name on my contract differ from the website?
Companies often market under a brand name while contracting under a legal entity name, or a broker's website may lead to a funder's contract. Ask for a clear explanation and verify the contracting entity too.
How long does checking a company really take?
The basic checks usually take about 15 minutes online. It is worth the time before sharing bank statements, identity details or signing anything.
Check us, then apply
Run these checks on TrustedBizFunder and any funding partner named in your offer, then decide.
Updated September 14, 2026 · TrustedBizFunder Funding Team