Eric's Credit Community

LOAN PROCEEDS:
$1,395: Legal Fees related to property purchase
$2,730: Music Education supplies/license update needed to open
$1,300 slatwall for retail area

EXPLANATION OF DEBT
Our personal credit cards were completely paid off prior to Sept of 2007. We drew heavily on personal credit to support the business during the time that we were not open for business, we continued to pay employee salaries but I did not pay myself. We took out several personal lines of credit for cash to close on property purchase. Also, some debt that is in the business name is showing up on our personal credit report. We obtained an SBA loan to purchase the building, and had to carefully document total equity injection into the business. We documented $150,068 towards ?start-up? business expenses since Sept of 2007, not including day-to-day operations (salary, utilties, rent.) I have forwarded this file to my group leader for verification. As the business is now supporting itself, we will be paying down debt as quickly as possible. I now have loss of business insurance to cover costs in case of another event.

EXPLANATION OF INQUIRIES:
4 inquiries are from credit card processors, as I set up a second merchant account for online transactions. One was a business credit card request. The others are related to the property purchase-various mortgage brokers pulling credit.

BUSINESS INCOME/EXPENSES
This loan will be paid by the business, but will be paid personally if the business is unable to. We reopened in Sept & grossed $13,950 that month. I have forwarded bank statements to my group leader to verify.

GROSS INCOME SEPT: $13,950
Breakdown of Business Expenses:
Mortgage: $5,100
Electricity $400
Water: $50
Telephone $100
Internet $50
Insurance $590
Loan $455
Salaries $2,250
Credit cards $350
Misc exp. $300
Total: $8,895.00
non-budgeted income: 4,305.00

PERSONAL EXPENSES
I am self employed. I entered ?0? as my income to avoid verification problems. All personal expenses are paid by my husband?s salary, which I cannot include on Prosper. I have forwarded my husbands paystub to my group leader for verification. Here is a breakdown of our personal expenses
Monthly Take-Home pay: $6,580.00
Mortgage $1,756.00
Electricity $250
Water $65
Telephone $46
Cable Modem $50
Natural Gas $35
Car #1 $255
Car #2 $405
Gasoline $100
Insurance $150
Payments credit card debt $2,050
Living Expenses $600
Total: $5,762.00
Non-budgeted funds: $818.00

All extra funds are going towards credit card pmts at this time. We will be paying off the card with the highest interest rate in approx 1 month with a loan from my husband?s retirement plan, cutting payments almost in half. The business will begin making payments, to us, with interest, on Jan 1st, on the amounts borrowed from us.