Businesses warned over loan shark dangers ahead of Business Finance Week

The England Illegal Money Lending Team (IMLT) is warning small and medium-sized businesses (SMEs) to stay alert to the risks of borrowing from illegal lenders, as part of this year’s Business Finance Week (30 September – 9 October).

Loan sharks are increasingly targeting business owners, offering what looks like a quick fix but often leading to crippling debt, harassment, and even threats. During Business Finance Week, IMLT is raising awareness so SMEs can protect themselves and explore the wide range of safe and regulated finance options available.

Why SMEs need to be aware:

• Illegal lending is a crime. Loan sharks operate outside the law, with no paperwork and no protections.

• They charge extortionate interest and hidden fees. This can quickly spiral out of control.

• It’s not just individuals who are targeted. More and more businesses are being approached by illegal lenders, especially during times of financial pressure.

Safer alternatives:

If your business needs support or funding, there are regulated lenders, government-backed schemes, and trusted organisations that can help. During Business Finance Week, events are running to highlight finance options designed for SMEs.

Spotting the signs of a scam:

Not sure if you’ve made the right decision or if you’ve been targeted by an illegal lender?

Watch this short video to find out more: Have you been targeted by a loan shark?

Need help?

If you think your business has borrowed from a loan shark, or you’re being pressured by one, you are not alone. The IMLT (also known as Stop Loan Sharks) is here to help with:

• Free, confidential 24/7 helpline: 0300 555 2222

• Expert support and advice for businesses and individuals

• Investigations that bring illegal lenders to justice

For more information and resources, visit Stop Loan Sharks.