04 25 2014

04 25 2014

Businesses Still Struggling After Hurricane Sandy

Natural disasters can be devastating for businesses of any size, but especially small operations, and many in the Northeast are still feeling the effects of 2012’s Superstorm Sandy. The Federal Reserve Bank of New York recently released the results of its small business survey in New York, Connecticut and New Jersey conducted online from Oct. 10 to Dec. 31.

Twenty-two percent of respondents said they suffered business losses of more than $100,000, and 61 percent reported operating at a profit or just breaking even. These numbers are even more dire considering that only businesses that survived were polled – many weren’t able to reopen after the storm due to extensive damage.

“Your costs to put the business back together don’t go down, they don’t disappear,” small business owner P.J. Whelan said to The Associated Press. “You still owe your creditors. You still owe your contractors.”

The survey found that 86 percent of business owners who suffered losses reported needing more financing to get back on their feet. Thirty nine percent said they will apply for credit in the first half of this year. Forty four percent said they applied for credit in the first half of 2013, but only 47 were approved.

Many respondents also reported not having insurance to cover the costs of damage and only minimal flood coverage. More than half paid for storm related expenses out of pocket.

Katrina had similar effect

Businesses everywhere should consider the potential impact natural disasters could have on their operations, but especially those in coastal areas. A year after it made landfall in 2005, the federal government’s Bureau of Labor Statistics released a report detailing Hurricane Katrina’s economic impact.

Nearly 100,000 jobs were lost in the Louisiana city 10 months after the storm hit, and lost wages amounted to about $2.9 billion – with about 76 percent of that felt in the private sector. New Orleans’ three main industries – tourism, port operations and education – were all devastated by the hurricane, which flooded about 80 percent of the city and displaced many residents, some of whom have never returned.

Small business owners who are still struggling to make ends meet can seek out working capital from nontraditional lenders like National Funding. These creditors make it easier for applicants to qualify for loans and offer flexible repayment terms.

Featured


Find Out How Much Funding You Qualify For

Fields marked with an * are required
By clicking this button I agree to all terms and conditions.

Terms & Conditions

General Acceptance

Any applications submitted electronically shall have the same force and effect as if the application bore an inked original signature(s). The above information, together with any accompanying financial statements, schedules, or other materials, is submitted for the purpose of obtaining credit and is warranted to be true, correct, and complete.

 

US Patriot Act:

To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person and business that seeks a business loan. What this means for you: When you apply for a loan, we will ask for your business name, address, and Tax Identification Number. We will also ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.

 

For Loan/Merchant Services:

The Merchant and Owner(s)/Officer(s) identified in the application (individually, an “Applicant”) each represents, acknowledges and agrees that (1) all information and documents provided to National Funding, Inc. (“NF”) including credit card processor statements are true, accurate and complete, (2) Applicant will immediately notify NF of any change in such information or financial condition, (3) Applicant authorizes NF to disclose all information and documents that NF may obtain including credit reports to other persons or entities (collectively, “Assignees”) that may be involved with or acquire commercial loans having daily repayment features and/or Merchant Cash Advance transactions, including without limitation the application therefor (collectively, “Transactions”) and each Assignee is authorized to use such information and documents, and share such information and documents with other Assignees, in connection with potential Transactions, (4) each Assignee will rely upon the accuracy and completeness of such information and documents, (5) NF, Assignees, and each of their representatives, successors, assigns and designees (collectively, “Recipients”) are authorized to request and receive any investigative reports, credit reports, statements from creditors or financial institutions, verification of information, or any other information that a Recipient deems necessary, (6) Applicant waives and releases any claims against Recipients and any information-providers arising from any act or omission relating to the requesting, receiving or release of information, and (7) each Owner/Officer represents that he or she is authorized to sign this form on behalf of Merchant.(8) I consent to receive direct mail, faxes, text-messages, and e-mails sent by National Funding and its affiliates for the purposes of transmitting account updates, requests for information and notices, and (9) this request is for business and not for consumer purposes.

 

For Equipment Services:

I hereby certify: (1) the information provided is true and correct, (2) you are hereby authorized to investigate all bank, credit, and trade references, and said references are hereby authorized to release any requested information to you or your nominee, (3) such authorization shall extend to obtaining personal credit profile in considering this application and subsequently for the purposes of update, renewal or extension of such credit or additional credit and for reviewing or collecting the resulting account, (4) this information may be transmitted by us to you and by you to underwriter(s) for the purpose of granting me credit, either electronically or manually, and that by submitting this application, I take full responsibility for transmission thereof, (5) I am over 18 years of age, (6) I acknowledge my rights under the Fair Credit Reporting Act, (7) I consent to receive direct mail, faxes, text-messages, and e-mails sent by National Funding and its affiliates for the purposes of transmitting account updates, requests for information and notices, and (8) this request is for business and not for consumer purposes.

 

Text Messaging:

By providing my wireless phone number to National Funding, Inc., I agree and acknowledge that National Funding, Inc. may send text and multimedia messages to my wireless phone number for any purpose. I agree that these text or multimedia messages may be regarding the products and/or services that I have previously purchased and products and/or services that National Funding, Inc. may market to me. I acknowledge that this consent may be removed at my request but that until such consent is revoked, I may receive text or multimedia messages from National Funding, Inc to my wireless phone number.

  
The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status or age (provided the applicant has the capacity to enter into the binding contract); because all or part of the applicant’s income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. If for any reason your application for business credit is denied, you have the right to a written statement of the specific reasons for the denial. To obtain the statement, please write to National Funding Inc., 9820 Towne Centre Drive, San Diego, California 92121. Funding amount and credit approval is subject to a full credit profile review.