Loan applications are made for many different reasons, when it comes to business loans then the top reasons to borrow are;
- Expansion of business
- Cash Flow
- Starting a business
All fairly normal stuff. However there are also some pretty weird reasons why loans are taken out. Let’s have a look at the interesting ones!
Plastic surgery is becoming an ever more popular reason that people borrow for. With over 50,000 procedures carried out every year in the UK then it is probably not that surprising. The UK market for cosmetic procedures is estimated to be worth £3.6bn per annum.
Many cosmetic surgery providers find offering finance for their procedures difficult due to risks to the lender over complications or mistakes, so borrowing money for these procedures shows no sign of slowing.
Loan applications for exotic pets, rare breed pets, or pedigree breeds are often seen. The weird thing is that loan application purposes to ‘buy a tiger’ have been reported by more than one high street bank! I would suggest that getting a loan for this purpose may prove a little more challenging than a loan to buy a car…
Interestingly there are no statistics as to whether these applications were made by men or women, but joint applications are probably not that common!
The other part to this is that marital split is one of the most common reasons that small businesses fail, so on a serious note – if you are taking a loan to fund a divorce then thoroughly think through how it will be repaid afterwards.
Personal Experience Of Loan Applications
In my personal experience, these are the weirdest reasons why I was ever asked to obtain finance;
- My Pop Career. A loan application to make a promotional video, produce a CD and then send it to various labels. The breakdown of spend included new clothes, a makeover and extra singing lessons
- Build a Gym. Not that unusual? Take into account that this ‘gym’ was a commercial project being built in a basement flat in Brighton, the ‘equipment’ was undefined. The particular area of Brighton was renowned and was subsequently the result of a vice squad raid. I will leave it to your imagination what the real ‘equipment’ was…
Loan Application Reasons
The only thing this post shows is that if you were considering applying for a loan for something you thought was strange, then it probably isn’t and the lender will have seen something even stranger before.
By Dave Farmer
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