Mr. Anderson of Anderson Financial LLC (company based in California, but not registered with the state. That makes it a ficticious name. Warning sign #1) said he has a program that funds $1.5 million.
This is how the program supposedly works: An 8-12-year-old corporation is filed with Secretary of State with client/designated entity as new owner. Anderson Financial deposits collateral assets in a trust account under the corporations name, and a block is placed on the funds. An 80-90% loan-to-value line of credit is then drawn through HSBC or Chase Bank. This process takes 2-3 weeks. It takes an additional 2-5 days to receive corp docs. At this time the bank mails the client the corporate checkbook and ATM card, which is how the client is able to use the line of credit.
100% of the line of credit is usable at all times. Interest rates are typically in the range of 2%-3%, interest-only payments on a 2-year balloon.
There are no pre-payment penalties. The client signs a document assuming 100% liability on their usage of the funds.
An elaborate setup that made sense. David took the time to answer all my questions on well-written, thoroughly explained emails, a phone conversation, and numerous texts back and forth.
The point is, it never happened. Mr. Anderson took my clients' money - $31,000 - and as just before the last of my clients' money showed up as paid, he stopped communicating. Radio silence since.
Fortunately all this was done through Paypal, which means my clients will get their money back. They have all processed chargebacks.
David Anderson is in the wind now with $31,000 of my clients' money. He was referred to me by a mutual associate, who also, it turns out, got scammed in a similar way.
Buyer beware. Lessons learned: 1) Get full business name and address, and find out how many years in business. Make sure that the DBA company is registered with the state, especially if the person claims they've been doing business for years. In other words, do research on the company. Ask questions if there are inconsistencies. Also, 2) CYA: MAKE SURE that any transaction you do is with credit or debit card, and if it's a first-time transaction, make sure the transaction completes well before the time frame that you can receive a refund or do a chargeback. Should be around 30-45 days. 3) If need be, ask the provider for their state ID or passport. 4) Ask for references.
As for David Anderson, whoever you really are, whatever alias and contact info you're using now, watch your back. Karma is a b***h.