New product development for cats and dogs
| Listing Information | |||
|---|---|---|---|
| Amount: | $25,000.00 | Status: | Loan created |
| Grade: | AA | DTI: | 0% |
| Lender Rate: | 24% | Borrower: | CLVE |
| Finished | State: | CA | |
| Funded: | 100% | Group: | Small Business & Self Employed |
| Loan Information | |||||
|---|---|---|---|---|---|
| Loan Status: | Paid | Origination Date: | 2007-06-22 | EricsCC ROI: | 24% |
| Status History | |
|---|---|
| Jun 22, 2007 | Current |
| Mar 21, 2008 | Payoff in progress |
| Mar 28, 2008 | Paid |
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About Me: My current main professional activities are focused on new product development and dog boarding. My former professional activities (investing, consulting and directorships) are not actively pursued and depend mostly on random opportunities. As a result, my past earnings are not an accurate representation of my future potential earnings. Hence, lenders should base their decision on future potential earnings only (also explanation for debt to income ratio= N/A). As per my Experian credit report dated May 24th 2007, I carry installment debt of $8,813.00 and revolving debt of $24,299.00 or a total of $33,112.00 (with average, unlimited and fixed 5% interest rate), while my total unused credit limit amounts to $78,720.00. The reason of this loan application is to 1) diversify my financial exposure, 2) obtain tax deductibility of interest paid, and 3) participate in this new exiting form of community financing. What the loan is for: I invented a new product for cat and dog transportation which substantially enhances the safety of transported cats and dogs and the peace of mind of their guardians. Not yet patented, I unfortunately can?t disclose any further details. This new product is currently nearing completion of Phase 2 (out of 4) of the development process. Total development cost is estimated between $42,000.00 and $48,000.00, of which $20,576.39 has already been paid. Total legal cost, including patent filing, is estimated between $10,000.00 and $12,000.00 of which $3,464.50 has already been paid. Hence, future payments to finalize the development and patent filing are estimated between $27,959.11 and $35,959.11. An amount of $25,000.00 repayable over 36 months is being raised through Prosper to cover a large portion of the remaining cost, the balance being funded through personal funds. As a result, the total cost estimated between $52,000.00 and $60,000.00 will have been funded for at least more than 50% through personal funds. How I will repay the loan: My new product will be licensed to a major company with complementary product lines and established domestic and international distribution. Several such companies have already been identified and will be approached after the patent filing, currently scheduled end of July 2007. Typically, a licensing agreement has an upfront payment to compensate for incurred development costs (in my case estimated between $100,000.00 and $108,000.00 including my personal labor) and a variable component, royalties, dependant on the quantities sold. Typically, royalties range from 10-15% of the wholesale price, which typically is about 2/3 of the retail price before sales tax. The retail price of my product is estimated at +/- $60.00. Hence, royalties are estimated between $4.00 to $6.00 per item sold. A realistic sales forecast calls for 100,000 items a year towards the third year of product introduction. Should the licensing not go through as expected, I?ll be able to fall back on my dog boarding business (www.ChezUtu.com) that I just started. Monthly budget: Inflow Dog boarding & related services: $6,700.00. Total: $6,700.00. Outflow Rent: $2,000.00; Health Insurance: $640.00; Car Loan & Insurance: $720.00; Credit Cards: $500.00; Utilities: $500.00(electricity, phones, internet, water, trash); Groceries: $450.00; Savings: $1,890.00 (includes money for daily living, gas for cars, recreation...). Total: $6,700.00. Note Inventing expenses are fully deductible from ordinary income as they occur. Hence, all development and legal costs will fully compensate my boarding income in Y1. In Y2 and Y3, anticipated income growth of 35% is expected to more than compensate the estimated tax burden of 25%. |
| Borrower's Other Listings | |||||
|---|---|---|---|---|---|
| 142428 | New product development for cats and dogs | AA | $25,000 @ 15% | May 29, 2007 | Expired |
| 364465 | Market introduction and monetization of new product for dogs | B | $24,999 @ 35% | Jul 21, 2008 | Withdrawn |
| 372259 | Market introduction and monetization of new product for dogs | B | $15,000 @ 30% | Jul 24, 2008 | Withdrawn |
| 374767 | Market introduction and monetization of new product for dogs | B | $15,000 @ 35% | Jul 29, 2008 | Withdrawn |
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