Yield 4 Finance, a company claiming to offer financial services from Dubai, UAE, has been increasingly under scrutiny due to allegations of fraudulent activities. Despite claiming to provide financing solutions for businesses, such as issuing Standby Letters of Credit (SBLCs), Letters of Credit (LCs), bank guarantees, and other financial instruments, the company’s operations appear to be nothing more than an elaborate scam.
This article delves deeper into the allegations against Yield 4 Finance, outlines the fraudulent schemes they may be running, and offers insights into why businesses should be extremely cautious before engaging with them.
What is Yield 4 Finance?
Yield 4 Finance presents itself as a global trade finance provider offering significant funding solutions for businesses in need of financial backing. The company claims to specialize in offering a range of financial instruments, including:
- Standby Letters of Credit (SBLCs)
- Bank Guarantees
- Performance Guarantees
- Demand Guarantees
- Letters of Credit (LCs)
Their website mentions that they have the capability to issue these instruments to assist businesses with securing financing, protecting transactions, and guaranteeing payment or performance. Yield 4 Finance claims that they can help businesses in a variety of sectors access substantial funding, making it sound like an attractive option for companies seeking financial instruments for international trade.
The company claims to be based in Dubai, with its office located at Business Bay, Suite 2903-2902, The Prism Tower. They also provide a contact number (+971-4570-6231) for potential clients. At first glance, their business model seems legitimate, offering essential financial services for companies around the world. However, this facade hides a much darker reality that has surfaced through numerous complaints and reviews from disgruntled customers.
Yield 4 Finance Reviews: A Pattern of Deception
A growing number of complaints and online discussions reveal alarming details about Yield 4 Finance’s fraudulent practices. Below, we explore the specifics of what clients have experienced when interacting with this company.
Fraudulent SBLC Transactions
One of the most significant complaints came from a customer who shared their experience of dealing with Yield 4 Finance over an SBLC transaction. The client initially contacted the company, which provided them with an MT760 draft, a standard format for Standby Letters of Credit. This draft listed the beneficiary, issuing bank, and advising bank, all of which appeared to be in order. At this point, the customer felt confident in proceeding with the deal.
However, after reviewing the draft, the customer realized that the issuing bank was not their preferred financial institution. They requested a change in the issuing bank, and Yield 4 Finance agreed to make the necessary adjustments in the final contract. Everything seemed legitimate at this point.
Upon receiving the final draft, the customer was asked to make an upfront payment to secure the Standby Letter of Credit (SBLC). The customer transferred the payment as requested. But when the final contract was presented, the customer was shocked to find that Yield 4 Finance had changed the agreed-upon bank to Coris Bank International, an unrated financial institution. Unrated banks are institutions with little to no financial standing, meaning they lack the necessary resources to back up Letters of Credit or guarantee payments effectively.
Due to the use of an unreliable and unbacked issuing bank, the SBLC turned out to be worthless. When the customer attempted to resolve the issue by contacting Yield 4 Finance, they were met with silence. The company refused to refund the money or offer any assistance. The customer ended up with a worthless SBLC and no recourse to recover their funds. This case highlights the fraudulent practices that Yield 4 Finance engages in to deceive businesses into paying for services they never receive.
Disappearing Funds and Unfulfilled Promises
Another client reported a similar experience with Yield 4 Finance. After being promised a legitimate financial product, the customer was asked to provide their business documentation and pay a substantial amount for a Letter of Credit. The company promised that the LC would be issued once payment was received.
After the customer made the payment, they were sent a document that appeared to be an LC. However, upon further inspection, the document was deemed fake and issued by a non-reputable financial institution. The customer’s repeated requests for a legitimate LC or a refund were ignored by the company, and no further communication was received.
Clients have consistently reported that Yield 4 Finance makes promises they do not intend to fulfill. The company uses excuses and delays to avoid accountability, while clients are left without the promised financial products. This pattern of deception leads many to conclude that Yield 4 Finance is running a scam.
The Leadership of Yield 4 Finance: A Red Flag
One of the most concerning aspects of Yield 4 Finance is the lack of transparency regarding its leadership. Although the company claims to offer significant funding and financial services, it offers very little information about its key executives or their qualifications.
The website mentions that the Chairman of the company is Sanjeev Chadha, but there are no details available about his professional background, education, or experience. The lack of concrete information about the leadership of a company offering high-value financial products is a huge red flag.
Transparency is essential in building trust, particularly when it comes to financial services. If a company refuses to provide basic details about its leaders, it is often a sign that something is amiss.
Other executives listed on the website include:
- Mohit Chadha – Chief Operating Officer
- Vipul Chadha – Managing Director
- Javela Macalalad – Vice President
- Aastha Sehgal – Director
- Alfred Jara Ibanez – Director
While the company provides names, there are no pictures, biographies, or verifiable credentials available for these individuals. This lack of transparency about the leadership team is concerning, especially for a company that claims to offer large-scale financial solutions.
In fact, the only executive who has a publicly available profile is Mohit Chadha, the Chief Operating Officer. His LinkedIn profile shows that he graduated with a Bachelor’s in Business Administration in 2016. Before becoming the COO of Yield 4 Finance, he worked as a customer service executive for a law firm and interned at a marketing firm.
These roles do not align with the responsibilities typically required of a leader in a company handling large financial transactions, raising further doubts about the legitimacy of the business.
Should You Trust Yield 4 Finance?
The numerous reports of fraudulent practices, the lack of transparency regarding leadership, and the absence of verifiable financial success stories all point to one conclusion: Yield 4 Finance is not a company you should trust.
There are several reasons why dealing with Yield 4 Finance is risky:
- Fraudulent SBLC and LC Transactions: The company has been accused of taking payments for SBLCs and LCs but then delivering worthless documents issued by unreliable, unrated banks. This leaves businesses with nothing but worthless financial instruments.
- Lack of Transparency: Yield 4 Finance provides very little information about its leadership and operations. Reputable companies are open about their executives, background, and business practices. The secrecy surrounding Yield 4 Finance’s leadership should raise alarm bells for potential clients.
- Non-Refundable Payments: Several clients have reported making payments to Yield 4 Finance, only to find that their funds were never refunded, nor were the promised financial products delivered. The company’s refusal to take responsibility for its actions further demonstrates its lack of professionalism and commitment to customer satisfaction.
- No Evidence of Legitimate Operations: Despite claiming to offer millions in funding, Yield 4 Finance provides no proof or evidence of successfully securing funding for businesses. The absence of case studies, testimonials, or financial backing for their claims suggests that the company is not operating as they claim.
- Repeated Negative Reviews: A quick search of online reviews and complaints reveals a consistent pattern of deceitful practices, poor customer service, and a lack of accountability. When multiple independent sources are reporting the same issues, it’s important to take notice.
Conclusion: A Company to Avoid
Given the mounting evidence of fraudulent behavior, unethical business practices, and a lack of transparency, Yield 4 Finance is not a legitimate financial institution. Their promises of substantial funding and financial backing are not supported by evidence or a track record of success. The company’s leaders are not transparent, and the financial products they offer appear to be worthless.
If you are considering working with Yield 4 Finance, it is strongly recommended that you look elsewhere. There are many reputable financial services companies that operate transparently and prioritize customer satisfaction. Don’t risk your business’s finances by falling for this scam. Always do your research, read reviews, and ensure that any financial service provider you work with has a proven and trustworthy history. Yield 4 Finance should be avoided at all costs.
