Rebuilding 22 Year Old Family Business
| Listing Information | |||
|---|---|---|---|
| Amount: | $10,000.00 | Status: | Loan created |
| Grade: | E | DTI: | 45% |
| Lender Rate: | 29% | Borrower: | mayhem |
| Finished | State: | CA | |
| Funded: | 100% | Group: | NuBeginnings |
| Loan Information | |||||
|---|---|---|---|---|---|
| Loan Status: | 1 month late | Origination Date: | 2006-08-01 | EricsCC ROI: | 26% |
| Status History | |
|---|---|
| Jul 31, 2006 | Current |
| Dec 17, 2008 | Late |
| Jan 02, 2009 | 1 month late |
|
I never had credit problems until I put my faith in a debt management
company (AmerAssist). I nearly lost my business and my credit was
destroyed. Please do not be scared by my low credit grade and high debt ratio. Many debts on my credit report are paid through the business and not by personal income. Since Prosper uses personal credit; there is no way to show this. I have owned a retail hardware store in a small town in California for 22 years. My husband and I ran it for many years and we were so successful that in the late 1990's we turned operations over to a manager and semi-retired to another state. All went well for five years, then the bad luck started. The shopping center the store is in was sold. A new building was built for my store. The old building was to be demolished. Having bought an existing business I had no experience with the cost of tenant improvements and resetting a retail store. I was $40,000 over budget. Then I lost my manager and went through two managers in two years. Then I discovered thousands of dollars in missing inventory. This was attributable to poor paper work and huge amounts of theft. In late 2003 I moved back and began running the store again myself. After 6 months of hard work, cash flow was very tight, but I was replacing missing inventory and solving problems. I could see light at the end of the financial tunnel. Then I was in a car accident. Although not seriously injured, the out of pocket expenses toppled my precarious finances. I had permanent neck and shoulder injuries. I could no longer lift heavy merchandise and had to hire more employees to do the heavy work. The financial strain of the accident caused me to seek help from a debt management company. They took my money for 6 months; made only a few payments on one debt; and destroyed my credit by allowing 5 credit card bills to be charged off. I paid off considerable debt by refinancing my house and selling every non-essential personal asset I have. I am slowly paying off the rest but have had to deplete inventory to make those payments. Some debts actually doubled in size because of interest and penalties while under the control of the debt management company. My current inventory levels generate only enough in sales to keep the doors open and break even. If I could bring the inventory back up to what it was four years ago, and keep it there, I could begin making a profit again. Then I could increase inventory further and grow the business. The community is screaming at me to have inventory on the shelf. They don?t want to see any more empty hooks and shelves. Every day I turn away hundreds of dollars in sales because I don't have the inventory in stock. With the profits of any increased inventory I will put half of the profits back into additional inventory and half in to debt repayment. By doing this I would double my existing inventory and pay off all debt within three years. I state this as fact because of my 22 years of experience. I have never turned my inventory less than 3 times per year. Experts from my national retail hardware chain have given rough estimates that my store could be doing at least ten times it?s current yearly gross sales if inventory levels were what they should be. Included are pictures of my store and a sales graph showing sales from 1999 to present. On the graph, the dip in 2001 is because the store was in the old building in a construction zone. Then, 2002, when I had sufficient inventory sales were great. They begin to drop off as inventory is depleted to pay off debt. More thorough explanations available upon request. |
| Borrower's Other Listings | |||||
|---|---|---|---|---|---|
| 22188 | Rebuilding 22 Year Old Family Business | E | $25,000 @ 25% | Jun 29, 2006 | Withdrawn |
| 23239 | Rebuilding 22 Year Old Family Business | E | $10,000 @ 29% | Jul 06, 2006 | Expired |
| 229029 | 2nd Prosper Loan to Reduce CC Interest Rates | E | $17,000 @ 25% | Nov 16, 2007 | Withdrawn |
| 237015 | Proven Prosper Borrower--2nd Loan | E | $12,000 @ 25% | Nov 25, 2007 | Expired |
| 246402 | Proven Prosper Borrower--2nd Loan | E | $5,000 @ 25% | Dec 08, 2007 | Expired |
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