Fund Diversion Fraud Prevention

fund diversion and embezzlement fraud

Sponsor Fund Diversion Fraud

Lenders and investors no longer have to rely upon reputation and character to help ensure a borrower or sponsor will not divert their capital investment to anything other than what the business deal calls for.

The specter of a borrower or sponsor diverting capital to purchase other items (e.g.: the proverbial “gold Cadillac”) than what the business deal calls for is a big issue for lenders and investors who underwrite investments in businesses and properties, and an even bigger issue for the business trying to obtain capital and assure their capital partners that good business practices will be adhered to for the entire term of the investment.

Credit underwriting is intended to address this issue but relies upon subjective criteria like character, reputation and experience as the metrics for making an informed decision. This is a flawed practice because everyone acts in their own self-interest at all times.

Default underwriting is intended to address this issue but relies upon contract rights that are only a solution that requires litigation as the only avenue. What about prevention? What about having the means to enforce the business deal – whatever that business deal may be – for the entire term of the investment? Wouldn’t that be better for all parties?

iCREDIT directly addresses this issue in a PROACTIVE manner to ensure the parties maximize their opportunity to receive the benefits they seek from the business deal in exchange for them performing their respective obligations. The iCREDIT system directly addresses the conflicts-of-interest issues, contracting issues, tracking issues and payment issues in a proactive manner to prevent the parties from having to worry about this issue. Find out more today by talking to us about what Day 1 could look like with iCREDIT in everyone’s corner saving time, money and worries.