Reopening & expanding discount clothing store - VETTED
| Listing Information | |||
|---|---|---|---|
| Amount: | $15,000.00 | Status: | Loan created |
| Grade: | E | DTI: | 10,000% |
| Lender Rate: | 28% | Borrower: | halfpricestore |
| Finished | State: | AL | |
| Funded: | 100% | Group: | Comprehensive Borrower Services (CBS) |
| Loan Information | |||||
|---|---|---|---|---|---|
| Loan Status: | Default | Origination Date: | 2007-04-19 | EricsCC ROI: | -28% |
| Status History | |
|---|---|
| Apr 19, 2007 | Current |
| May 04, 2008 | Late |
| May 24, 2008 | 1 month late |
| Jun 20, 2008 | 2 months late |
| Jul 20, 2008 | 3 months late |
| Aug 20, 2008 | 4+ months late |
| Dec 29, 2008 | Default |
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Introduction Last June, I opened a retail men?s, women?s, and children?s discount clothing store, but closed it down after Christmas due to lack of inventory space, and bad location. My store specialized in well-known brands at a savings of at least 50% off the regular retail prices, with the average being 65% to 75% off retail price. I now have the opportunity to re-open the store in a new location in a busy shopping center. The store space I?m interested in is an estimated 2000 sq ft priced at $750 a month, which would be four times the space I had before. Purpose of Loan Due to the larger space, I?d need to buy more supplies/inventory to fill it. I have the inventory from the old store (est. $18,000 at my cost) and supplies (est. $2,000) in storage. I am requesting a $15,000 loan for extra inventory, supplies, and other startup expenses in the new location: Six months rent prepaid $4500 Racks/slat wall/shelving $1900 Phone/utilities turned on $500 Licenses/misc. $500 Additional inventory $6000 Grand opening advertising $1600 Credit History Back in 2000-2002 my husband and I got in way over our heads with credit cards. We found ourselves in serious debt of around $15,000 total. This was due to really bad financial habits, as well as getting caught up in the excitement of suddenly receiving during a two-three month period 9 different credit cards. Once we figured out the mess we were in, it was almost too much to deal with. But after buttoning down, and cutting out all excess spending, we were able to get most of these debts taken care of. The account listed as 'Currently Delinquent' at Prosper is a Capital One credit card from 2001. I tried to deal with Capital One about this account several times, but once they sold it, they won't deal with me any longer on this. Capital One continues to list (on my Experian report) that the acct is "Past Due 180+ days." I was able to get them to correct this on my Equifax report last year, but not on Experian. Due to this huge mistake we'd made from foolish spending, we clearly learned to live on a budget. We now have very little debt. Right now we only owe our mortgage which has a little over $33,000 left to pay on, with a monthly mortgage payment of $322. We do not even own a credit card any more. The only thing we use now is either cash or our debit card. The DTI ratio on this listing is high because I had to reset my income to $1 since this is a loan for a business that is not currently open. Budget My group leader has reviewed my business plan for the new store location; please see his vetting report for details. Sales are estimated at a beginning amount of $7500 monthly. Monthly expenses: Cost of goods sold $2500 Insurance (general liability) $110 Mall Fees $15 Advertising $100 Miscellaneous $100 Printing flyers & punch cards $25 Rent $750 Electric $100 Telephone & Internet $65 Prosper Loan $630 Net monthly income: $3105 I will be running the store by myself in the beginning, but will bring in my teen children to work as finances allow. In the early months, all profits will be reinvested in additional inventory. My husband?s income covers our household bills, so the only ones I have to concern myself about are the store bills and debts. Our monthly household expenses are: Mortgage $322 Electric $100 Water $30 Gas (for vehicle) $125 Phone $55 Food $400 Misc. Expenses $100 Auto Insurance $65 Total $1197 I hope you will be part of the success of an expanding business by helping me fund my loan. |
| Borrower's Other Listings | |||||
|---|---|---|---|---|---|
| 89220 | Expanding/Re-Opening Business | E | $25,000 @ 20% | Jan 26, 2007 | Withdrawn |
| 89277 | Reopening/Expanding Clothing & Shoe Store | E | $20,000 @ 28% | Jan 26, 2007 | Expired |
| 94244 | Opening Business In Mall. 2nd Request! Will explain high DTI | E | $20,000 @ 28% | Feb 06, 2007 | Withdrawn |
| 95386 | Reopening Business/Lower Amt Requested/Higher Interest Rate | E | $15,000 @ 29% | Feb 08, 2007 | Expired |
| 102116 | Looking to reopen store/lower amt/higher interest rate | E | $15,000 @ 29% | Feb 21, 2007 | Expired |
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