We've all heard the old adage - "Buyer Beware!" but an even more important warning to heed is "Borrower Beware!" As we build our businesses, we can't escape the fact that we need loans and credit, but it's vital that business owners keep their eyes open for fraudulent credit and loan providers.

There are many common tricks that fraudsters use when targeting vulnerable new business owners. They know that when you're starting out, good credit and a nice loan can be very tempting. Some things to watch out for are calls from companies that are making promises to quickly consolidate your debts or provide you with loans -especially when you know you're credit is not top-notch. If something sounds too good to be true, it probably is!

Businesses have to be especially mindful of scams like Advance Fee Loans. What's involved here is a company calls - or you contact a company - and they assure you that you have been approved for a loan. The only catch is, they want you to secure your loan with an upfront payment - usually a couple of hundred dollars. If a lender asks for money before producing a loan, it's not legitimate! The real pitfall here is that new businesses and new business owners are often struggling with their cash flows and may ignore warning signs and fall for these scams - keep your guard up!

As tough as it is to swallow, criminals prey on people in need when they're at their lowest points. Fraudulent 'creditors' will exploit people who have just lost their jobs or are in the process of putting together a new business.

But it's not all doom and gloom. There are ways to avoid financial scams and protect yourself and your investments.

Other common traps include credit fraud and credit repair scams. Sometimes we're so desperate to fix a bad credit situation that we ignore our instincts and warning signs. This is incredibly dangerous as it can take you from a bad situation to a disastrous one. When companies approach you and promise to make changes to your credit file - changes to information that is accurate - you know you're dealing with a scam artist.

Learn to protect your business and your investments. As tempting as some offers may be, if they come with unrealistic promises and guarantees, move on. Do your homework before entering into agreements with any financier.

Building good business credit is essential for your success - but don't get caught in a trap that will land you in financial peril - or jail!