Business loan requests are sometimes for unusual reasons. We will review 10 uncommon reasons for needing a business loan. If your business needs funding for any uncommon reason, contact us. Complete the Online Application. Contact us at the number below.
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1 common theme among these is that businesses need a higher amount of business funding in these cases.
10 Uncommon reasons for needing a business loan:
Natural Disasters, floods, fires
Losses due to natural disasters are probably the most expensive for businesses. Businesses need money after being hit by a natural disaster. This can be Tornadoes, hurricanes, floods, fires, drought, wildfire, hail, blizzards, oil spills and extreme winters. Businesses may need working capital to cover the cash shortfall because of disasters like these. FEMA helps many business owners, yet is either too slow for some businesses or cannot help at all.
My business is being sued.
If a business is being sued, it may need money to hire an Attorney and go through the litigation process. Expenses can be $10,000 and as much as hundreds of thousands of dollars. There are different types of lawsuits that a business may be sued for that they need funds to defend.
Other types of lawsuits businesses face:
A) Being sued for Malpractice.
Businesses in the Healthcare field are usually the primary targets of malpractice lawsuits they need money for. Other industries sued for Malpractice include Accountants, Consultants, Construction Companies, Retail Businesses and businesses that need a professional license. A business may need a loan or money to pay for Malpractice or a Malpractice lawsuit.
B) Business being sued for not fulfilling contract
Businesses are sometimes sued if their contract is not completed correctly. This happens in the Construction industry, and many other industries also. Many companies need money or a business loan to fulfill a Contract.
C) Business being sued for Copyright infringement
Businesses can be sued for many types of alleged copyright violations. Copyright lawsuits happen often in the music and entertainment industry. Trademark disputes, intellectual property lawsuits and others are the basis of suits. Businesses need money or a business loan for Copyright infringement lawsuits.
Need money to relocate business
Business relocation requires significant funding. The bigger the business, the more relocation will cost. Relocating is a big expense for any business. Many businesses need money or a business loan to relocate.
Partner Buyouts or Owner Buyouts.
Businesses often have more than one owner. Sometimes multiple owners do not get along and one or more Partners want to leave. Because of this, a buyout of the Partner or buyout of an owner may be needed. A business owner may need money or a business loan to buyout another partner as a result.
We need a business loan to meet new City, State or Federal regulations.
City, State and Federal Regulations change over time. Businesses sometimes have considerable cost to comply with regulations. A company may need a business loan to meet new regulations.
The last 5 of 10 uncommon reasons for needing a business loan below:
Need a business loan for training and licensing requirements.
Business may have to provide training to all of their employees or meet new licensing requirements. A business loan will probably also be needed for updated licensing and training. City and State offices also have information on licensing and training requirements.
Theft causes sudden losses. Companies need a business loan to recover from customer theft, employee theft, shrinkage, and also loss of inventory. A business loan and also a line of credit covers businesses from lost cash flow.
Major Accounting Errors
Businesses have cash flow problems because of mistakes made by Accountants as well as Bookkeepers.
Math errors are probably less frequent mistakes. Accountants also incorrectly take deductions and file the wrong type of Return. They may not tell the business owner to increase their estimated quarterly payments either. These errors cause a higher tax liability. The business then needs to get a business loan to pay more taxes because of Accounting Errors. Your Accountant can provide Quarterly reviews to avoid cash flow hardships.
City Infrastructure Repairs.
Cities, Counties and States do extensive street and road repairs. This also includes Sewer work, pipes and cement work. States make Bridge and Highway repairs that also affect traffic exits and main roads. Retail stores are also affected by these County or State Road repairs. Retail stores located on a main road with major construction work are also devastated. Businesses therefore need a business loan to also makeup for a loss of Sales and lower cash flow.
Need a business loan to hire overseas technical workers.
Industries cannot find all of the workers they need domestically, so as a result, they must also hire workers from other countries. Technical fields are another industry that also has difficulty hiring skilled workers. Hiring workers from overseas is a big expense. Therefore, companies may need a business loan to pay for the cost of hiring overseas workers.
But what are the main reasons businesses need loan? Review the 10 most common reasons businesses want a business loan to get helpful tips and steps on how you can get your business loan request approved and funded.
Thank you for visiting this resource. Visit 10 uncommon reasons for needing a business loan in the future for especially relevant information on unique loan requests. Contact us for your business loan needs.