Start-up and cash flow for restaurant
| Listing Information | |||
|---|---|---|---|
| Amount: | $25,000.00 | Status: | Loan created |
| Grade: | B | DTI: | 61% |
| Lender Rate: | 18% | Borrower: | pjnugget |
| Finished | State: | MN | |
| Funded: | 100% | Group: | (No Group) |
| Loan Information | |||||
|---|---|---|---|---|---|
| Loan Status: | 4+ months late | Origination Date: | 2007-08-09 | EricsCC ROI: | -41% |
| Status History | |
|---|---|
| Aug 10, 2007 | Current |
| Jan 26, 2008 | Late |
| Feb 10, 2008 | 1 month late |
| Mar 10, 2008 | 2 months late |
| Apr 10, 2008 | 3 months late |
| May 10, 2008 | 4+ months late |
|
Purpose of loan: I am investing in our family business with my son. We currently have a Pizza restaurant in operation since Dec 2005. We are in the process of opening a second location in nearby Mankato, MN. There is a very large college population as well as approx 50,000 residents. Also we currently do about 75% of our sales through delivery, I expect similar numbers from the second store considering the number of college students. My financial situation: Full time income of $30,000.00 The current restaurant has a net profit of approx. $1500.00 to $2000.00/ week( yes week!!) Which my son also lives off of. Also expect to see profit from second location shortly after start-up. My son has been in the pizza business for over 10 years. He took an estb. store after 8 yrs and increased sales by over 75% in only 2 yrs, IN THE TOWN WE ARE OPENING THIS SECOND STORE IN) Current store began turning profit after only 4 mos. Unfortunately getting open was a 5 mo learning experience causing us to go well over budget. We now know what to expect from the city and county health dept. Current store is in a college town with only 2,500.00 students( Gustavus College in St. Peter, MN. This new store will be opening in Mankato, MN which has Minnesota State, Bethany, Rassmussen, and SCTC!!! Over 16,000 students!!!!!!! We expect a minimum of $40,000.00 in sales per month. Rent and utilities are around $2000.00/mo, payroll $15,000.00, food cost is approx. 28% or $11,200/mo., the stores are only 12miles apart so most advertising will overlap. Other expenses of $2000.00 or less leaves $8,800.00. Credit...I always make payments ON-TIME, and the Debt to income ratio is decieving, as many of the payments are being made by the **restaurant** and not from my personal income. As you see we have used 42% or approx $16,00.00 of avaiable credit lines. We would like to keep the remaining available for any unforseen problems. Monthly expenses: $ Housing: $ 900.00 includes ins and taxes **($300 of which was cash out paid by restaurant)** Car expenses: $ none Utilities: $ 70.00 Phone, cable, internet: $70.00 Food, entertainment: $ 200.00 Clothing, household expenses $ 100.00 Credit cards and other loans: $ 500.00 **($400 of which is paid by restaurant)** Other expenses: $ 100.00 for misc Although I am personally guaranteeing the loan, payments are expected to be made from the restaurants. I am basing this off of current sales and expenses from the first restaurant which has been in operation since Dec 2005. As well as sales from another pizzeria in the same town as 2nd store which my son managed for 4 yrs. Please feel free to contact me with any quesions or concerns. I assure you that there is very minimal risk involved. Thank you in advance for helping to make our family's dreams come true!!!! |
| Borrower's Other Listings | |||||
|---|---|---|---|---|---|
| 173746 | Restaurant Equipment for 2nd location start-up | B | $25,000 @ 20% | Jul 21, 2007 | Withdrawn |
| 175073 | Restaurant Equipment for 2nd location start-up | B | $25,000 @ 20% | Jul 24, 2007 | Withdrawn |
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