Buying inventory while maintaining average checking balance
| Listing Information | |||
|---|---|---|---|
| Amount: | $20,000.00 | Status: | Loan created |
| Grade: | A | DTI: | 14% |
| Lender Rate: | 17% | Borrower: | HelmetCamChad |
| Finished | State: | CA | |
| Funded: | 100% | Group: | (No Group) |
| Loan Information | |||||
|---|---|---|---|---|---|
| Loan Status: | Current | Origination Date: | 2008-02-21 | EricsCC ROI: | 15% |
| Status History | |
|---|---|
| Feb 21, 2008 | Current |
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Purpose of loan: We have learned quite a bit about online sales in the last 6 months. Our business selling wearable video systems ( The Shop @ Helmet Camera Central ) has grown very rapidly in the last 6 months. We also have a Helmet Camera Blog that is the #1 source for helmet camera information in the world. Our gross monthly sales volume has been consistently over $100,000 - and with a young business such as Helmet Camera Central, a credit card processing company is going out on a limb a bit by processing over 1 million in gross sales (projected 2008). In December of 2007, our credit card processing company required us to establish large cash escrow account before they would allow us to continue processing credit cards. This monies in this escrow account will be released back to the business when certain conditions have been met. The credit processing company will review our overall business in early March, and based on the following criteria may release the funds back to the business:
The core purpose of this loan is to allow us to increase the average monthly checking balance in our main business checking account. By carrying an average checking balance of over $80,000 for the next 1-2 months, the escrow funds tied up with the credit card company can be released back into the business. This $20,000 loan will essentially be sitting in our checking account keeping our balance up above $80,000. Inventory purchases will continue as usual using the funds currently available to the business. Our financial situation: Our bottom line is solid and growing. The business overhead is very low, and the business can easily support payments on this small loan. Personally, I have a full time day job in the technology sector where I am a Business Intelligence Expert for a large, global software company. This job provides the core income for my family. I have been gainfully employeed for the last 10 years at this company. |
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