Need Inventory Loan for Expanding Metals Trade
| Listing Information | |||
|---|---|---|---|
| Amount: | $25,000.00 | Status: | Loan created |
| Grade: | A | DTI: | 27% |
| Lender Rate: | 14% | Borrower: | AiriusTorpora |
| Finished | State: | OR | |
| Funded: | 100% | Group: | (No Group) |
| Loan Information | |||||
|---|---|---|---|---|---|
| Loan Status: | Current | Origination Date: | 2007-10-03 | EricsCC ROI: | 11% |
| Status History | |
|---|---|
| Oct 03, 2007 | Current |
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Purpose of loan: A few months ago I started brokering precious metals to close friends and contacts in and around Portland, Oregon. In the course of doing so I have increased my volume of sales to the point where I really need to carry additional inventory in order to meet the needs of my friends, family, coworkers and expanding word-of-mouth business relationships. This loan will be used to purchase additional inventory of silver and gold for the purposes of resale. The recent run on the market has caused most shipments from my vendors to arrive slower and slower. This is a zero overhead business, I operate it as a hobby business on the side, and inventory turnover is approximately 45 days at about 5-7% average margin. If the commodities market slows down, this loan may be paid back early, but otherwise my return on working capital dictates that the most prudent financial decision for the foreseeable future is to continue to make the normal amortized payment monthly for the full term. My financial situation: I have a great amount of experience in managing cash flow and large quantities of debt and incoming cash flow. I also maintain significant physical hard assets and savings to smooth out any cash flow shortages. My wife also brings in a household income of over $40k per year and carries no debt obligations at all except for the co-mortgage of the house we live in. We live modestly with no children and two small parrots. Current net worth is in excess of $200k. I have always paid every obligation, many of which have been paid to term and fulfilled in full since I began my credit experience in 1995. Monthly net income: $ 5954 monthly after taxes from primary employment (annual is 90k gross) Monthly expenses: $ Housing: $ 2425 (1st+HELOC combined) Insurance: $ 760 (this includes 500 per month for a variable life annuity for $1.7M and long term disability to replace my full income) Car expenses: $ 0 Utilities: $ 150 Phone, cable, internet: $ 90 Food, entertainment: $ 400 Clothing, household expenses $ 450 Credit cards and other loans: $ 1415 (all below 9%, most below 5%, don't want to pay off due to rate) Other expenses: $ NA That leaves only $264 left over for misc stuff, which there is much more than 264 of once you start adding up minor medical bills, etc, but remember my wife works, has no debts and I have additional business and investment income, and this is a loan that will be used for inventory that is liquid, valuable and appreciates if the economy goes downhill or the value of the dollar diminishes. Overall free cash flow is over $2500 per month with most being reinvested in higher risk, non-dollar denominated, assets rather than used towards debt retirement. |
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