Established (10 Years) Self-Employed Businesswoman Expanding
| Listing Information | |||
|---|---|---|---|
| Amount: | $7,950.00 | Status: | Loan created |
| Grade: | HR | DTI: | 19% |
| Lender Rate: | 25% | Borrower: | GlassArtistGwen |
| Finished | State: | CA | |
| Funded: | 100% | Group: | (No Group) |
| Loan Information | |||||
|---|---|---|---|---|---|
| Loan Status: | 2 months late | Origination Date: | 2006-08-14 | EricsCC ROI: | 2% |
| Status History | |
|---|---|
| Aug 30, 2006 | Current |
| Oct 30, 2007 | Late |
| Nov 06, 2007 | Current |
| Nov 29, 2007 | Late |
| Dec 15, 2007 | 1 month late |
| Jan 15, 2008 | 2 months late |
| Feb 02, 2008 | 1 month late |
| Feb 15, 2008 | 2 months late |
| Feb 23, 2008 | 1 month late |
| Mar 17, 2008 | 2 months late |
| Apr 04, 2008 | 1 month late |
| Apr 16, 2008 | 2 months late |
| Apr 17, 2008 | 1 month late |
| May 24, 2008 | 2 months late |
| Jun 05, 2008 | 1 month late |
| Jun 15, 2008 | 2 months late |
| Jul 15, 2008 | 3 months late |
| Jul 30, 2008 | 1 month late |
| Aug 15, 2008 | 2 months late |
| Aug 30, 2008 | 1 month late |
| Sep 15, 2008 | 2 months late |
| Sep 30, 2008 | 1 month late |
| Oct 15, 2008 | 2 months late |
| Oct 24, 2008 | 1 month late |
| Nov 15, 2008 | 2 months late |
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I am looking for a loan to expand my business, which has been in existence for nearly 10 years. I had some credit and cash flow problems, due to the departure of a partner, but you will notice I have no delinquent accounts. I have been able to maintain my accounts and I generate good income, but my credit is not growing as fast as my business needs dictate. The fact that a lot of my needs were taken care of with cash for many years does not help matters. I have been very responsible in managing my credit and making timely payments, but I have had to maximize my accounts in order to fund growth. I would imagine that the fact that I rent instead of owning a house doesn't help my score much either. The money would be appropriated to 3 areas. After the 1% Prosper fee is taken out, $7,870 would be left. I would use $3,400 to pay off existing high interest loans. I have made all payments on them, but the interest is ridiculous. $2,120 would go toward supplies. Currently, I order supplies in smaller quantities that I can afford, but I would pay less for them in larger quantities. Also, I would have a back stock of supplies so I wouldn't have any lag time between production runs. I currently am only able to buy enough of certain necessary supplies to make it a month or so. Because of this fact, I often have to wait until I return from selling my products before I can order more supplies, which frequently leads to the lag time. The remaining $2,350 would be used for expenses and would give a bit of a cushion so I would not have to make sales trips so frequently. Currently, I have to go on these trips so often that it significantly cuts into my profits. Because I have to make the trips so often, I spend less time actually producing the products. If my loan were to be funded, I wouldn't be wasting those days on the road. I could instead wait until I had more produced and make one trip per month instead of two or three. This would also save a large amount in gas and other travel expenses. Since I always have more orders than product, the extra days of work each month would enable me to fill more orders. I travel instead of shipping for several reasons. I like to give my accounts personal attention; they tend to buy much more when I'm there than they do through phone orders; and I like to be able to deliver the items personally to insure no breakage or quality issues (the products are glass art). Also, when I used to ship orders, I found it much more likely that checks would bounce and/or payments wouldn't show on time. Since I have been personally delivery everything, that has not happened once. Although the calculations show the loan would make my debt to income ratio 20%, this is not exactly accurate. It would be much lower. After I paid the high interest loans off, $217 in monthly payments and a couple of balloon payments totaling $550 would be eliminated (the 20% assumes I would still be paying that $217 per month). Because the Prosper loan payment would be $333.15, I would be paying only $117 more per month than I am paying now, but with a much better cash flow and a very significant stock of supplies. The included photos are of my two children (ages 4 and 7) and my husband (married 11 years). He is working in our glass shop. Please feel free to ask any questions. |
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