IRA Network: friend or foe?

February 29, 2008 11:15 AM

Is the Investor Resource Alliance Network a legitimate service or is it a scam?

Asking this for a friend who is worried that another friend is being scammed by this IRA Network. Here is what he says:

"The IRA Network purports to help entrepreneurs connect with lenders and investors. For a fee, they claim to provide general advice, assist in writing your business plan, and present your case to their entire Rolodex of affiliates. I am worried that they will take the money, never present the plan to anyway, and finally just make up some story about potentially interested lenders that decided to turn it down.

Has anyone had any experiences with this organization? I am particularly interested in any firsthand stories of either success or failure in dealings with them."

FWIW this is the website I get from doing a google search:
http://www.businessplanfunding.com/term.php?id=14

posted by reformedjerk to work & money (3 comments total)

Well, check out the BBB to start with.
posted by iamabot at 12:28 PM on February 29

I've never heard of that organization but I do know that no one will pitch your company better than you will, so I am wary when anyone says they'll "present my case to their entire Rolodex." What does that mean specifically? They'll fax blast it? Jeesh.

Besides, not all of these investors may be your target. Some are software only, others want biotech, others invest only in St. Louis or wherever.

I'd check out SCORE first. It's free.
posted by Tacodog at 1:18 PM on February 29

going with what iamabot said. After checking with BBB, calling that state's Attorney General Consumer Affairs line (Which in NY state is an 800 number) will get you more legal information about state actions against the company. They can also tell you about your consumer rights in relation to this company. Also see if there is an overseeing board in NY for this type of firm and see if anything has been done with them. Scam companies won't have real files anywhere but BBB and their information will be scant at best since these companies like moving frequently to avoid real detection.

The Reliability Report says it best:
Before investing money in a business opportunity or franchise offer, the BBB recommends that you investigate the offer carefully.

* Research the business. Determine your skills and needs, and the viability of the business within your market. Consider the possibility that the market may already be saturated.

* Contact your State Attorney General's office to verify that the business is registered.

* Contact trade groups related to the specific industry.

* Have your attorney review any contracts before signing them.
posted by Gular at 1:30 PM on February 29