Europe self liquidating loans
The fraud operators present the 4% advance fee as payment for an insurance certificate covering the loan.
In order to qualify for the loan, victims are required to register a new company in the Middle East.
When it is clear that the victim has exhausted all avenues for resolving their financial problems, they are offered this ‘loan’.
The financing is represented as offering deferred payment terms of up to 10 years, subject to an advance fee payment, representing 4% of the overall value of the loan.
Once the company is registered and the advance fee handed over, victims receive a counterfeit cheque for the full amount borrowed.
Upon discovery that the cheque and entire loan arrangement are false, victims find themselves unable to contact the ‘loan providers’.
A business might use a self-liquidating loan (or assets) to purchase extra inventory in anticipation of the holiday shopping season.
The revenue generated from selling that inventory would be used to repay the loan.
The term can apply to a company that experiences seasonal fluctuations in business.It also offers project finance, marine finance and working capital lending, worldwide.Credit Europe Bank is a niche player in structured trade finance, being one of around 20 boutique trade finance houses in the world, with tailor-made products and solutions.The scam operators appear to know, almost exactly, the amount of money to offer in order to relieve the financial difficulty of victims.Those stung by this operation have found themselves losing hundreds of thousands of euros and holding worthless insurance certificates.” He concluded: “The FIB recommends that any loan offer appearing to have similarities to the fraud depicted above, should be treated with suspicion and avoided.” FIB is part of the ICC's Commercial Crime Services (CCS).