Commercial Hard Money Lenders Do Not Fund Terrorists

In California, the noose has tightened around online loaning industries since the pandemic of terrorist attacks that occurred on American ground largely starting with 2001. Local government developed new regulations and scrutiny that more recently (Dec. 2015) included the California Section of Business Oversight. A few observers are concerned that California’s hard money lenders may unknowingly fund terrorist activity. This article shows how such fears are ungrounded. Licensed Moneylender Singapore


Towards the end of 2015, a series of events suggested that at least one online US-based private financing company had unknowingly abetted terrorism. Sources near the investigation said there are no known indications that the terrorist activities in question were linked with any foreign terrorist business such as ISIS. 

However, terrorist experts say that the anonymity of these online private lending establishments makes it theoretically possible to use them to send funds to specific individuals. The borrower’s identification is protected and buyers can’t research for a particular loan applicant by name.

The government was also worried to find that financial loans issued through online lenders have increased rapidly in the last year, calling into question whether the industry needs to be regulated more heavily. According to Morgan Stanley, online lenders granted $14 billion worth of loans in 2014.

On an earlier investigation, the California Department of Organization Oversight found that some business owners and consumers do not fully understand the conditions of the loans they receive by these online lending companies. This may result in, what is called, “predatory lending”. Another study conducted by the Federal Reserve Plank and the Federal Book Bank of Cleveland in August 2015 found that small-business owners have difficulty comparing credit products offered online by alternative lenders. Some lenders, for example, only cite amount to be repaid daily while others cite an annualized interest rate.

Under A bunch of states state law, the Office of Business Oversight (DBO) requires that loan rates be explained “fully and clearly” to borrowers. Express licensing laws also require that the lender confirms the ability of the borrower to afford the repayment prior to the lender profits with the transaction.

Failing to abide by these requirements, together with their links to terrorist funding, set in place a DBO inquiry into motion.

California recieve more than 500 private hard money lending companies. A lot of them are concerned that the express inquiry has put the industry in a tough spotlight which there could be a regulatory overreaction.

There’s reason for matter.

A whole lot of Californians worry these companies – so readily selling their no-credit-check backgrounds – may unwittingly provide terrorists with ammunition or other arsenal.

Private lenders give customers quick access to large amounts of cash. While charge cards can take weeks to arrive and give an average credit series of about $5, 1000, an over-the-counter loan from any of the hard money companies can amount to just as much as $35, 000 – and borrowers can get their cash in days and nights, not weeks.

Easy credit makes funding terrorism easy. But here’s why hard money lenders are likely to be exempt.

Hard money lenders have recently been indicted for various criminal offences in past times, mostly for nipping naive people into individual bankruptcy. But that’s where it stops.