Restructuring startup debt for payoff (relisting)
| Listing Information | |||
|---|---|---|---|
| Amount: | $16,000.00 | Status: | Loan created |
| Grade: | AA | DTI: | 41% |
| Lender Rate: | 11% | Borrower: | RightLivelihood |
| Finished | State: | TX | |
| Funded: | 100% | Group: | (No Group) |
| Loan Information | |||||
|---|---|---|---|---|---|
| Loan Status: | 2 months late | Origination Date: | 2007-11-07 | EricsCC ROI: | -54% |
| Status History | |
|---|---|
| Nov 07, 2007 | Current |
| Sep 22, 2008 | Late |
| Oct 08, 2008 | 1 month late |
| Nov 08, 2008 | 2 months late |
|
Purpose of loan and financial situation: My husband and I own a manufacturing business in the baby products industry. We have one child, and are home-owners. We own our cars outright. Between our retirement savings and equity in my company, our net worth is roughly $500,000. Unfortunately, little of this is liquid, which is why we used debt-financing to fuel our fast-growing business. In the last six months or so, the cash-flow through the company has really stabilized, and we're now restructuring all of our various financing vehicles (credit cards, lines of credit, and such) into installment loans with payoffs in the 3-5 year range. This loan will be the last step in that process. Going forward, the company will finance growth through factoring receivables and selling equity to employees and personal investors. This loan payment will be less than we are currently paying on the other financing vehicles, which will be closed out completely. I see that my DTI is high. That's because only my income is being taken into consideration. With my husband's income, our DTI is right around 22%. The inquiries on my credit report are from our recent home purchase, in August. I just have to say what a wonderful phenomenon I think Prosper.com is. I always feel that I would rather pay interest to individuals, rather than institutions. But borrowing from friends and family can be so emotionally tricky, even when everyone is happy to do it, and everything goes smoothly. NB: I withdrew my last listing because it wasn't going to fully fund at a lower rate. This is the max rate allowed by my state, so I am crossing my fingers. I pay my bills on time; please see my credit synopsis. So this is a great loan at a high rate. Monthly net income: $7000 Me: $3000 Husband: $4000 Monthly expenses: $6312 (mine and my husband's can't be untangled) Housing: $1340 Insurance (life): $67 Car expenses (insurance and gas): $440 Utilities: $290 Phone, cable, internet: $55 Food, entertainment: $920 Clothing, household expenses: $800 Credit cards and other loans: $900 (to be mostly replaced by Prosper loan) Other expenses (private school, health/wellness, etc): $1500 |
| Borrower's Other Listings | |||||
|---|---|---|---|---|---|
| 218909 | Restructuring startup debt for payoff | AA | $25,000 @ 14% | Oct 23, 2007 | Withdrawn |
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