Financial Services Franchise Fee & Working Capital
| Listing Information | |||
|---|---|---|---|
| Amount: | $20,000.00 | Status: | Loan created |
| Grade: | AA | DTI: | 17% |
| Lender Rate: | 11% | Borrower: | victor99 |
| Finished | State: | MN | |
| Funded: | 100% | Group: | (No Group) |
| Loan Information | |||||
|---|---|---|---|---|---|
| Loan Status: | Current | Origination Date: | 2008-03-05 | EricsCC ROI: | 9% |
| Status History | |
|---|---|
| Mar 05, 2008 | Current |
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Purpose of loan: This loan will be used to provide working capital for the start up of a financial service franchise. The service primarily involves providing short term capital to small and medium sized privately owned businesses through factoring (purchasing the title to an invoice/receivable at a discount). The majority of the invoices that we purchase will be with recourse, which means our client retains all credit risk. The business is supported by a franchise and I am entering this franchise with a partner. My background and financial situation: I am employed as a professional in a Sales & Marketing role and do not plan to leave my employer. My undergratuate degree is a B.S. in Accounting, I have passed the Certified Management Accountant (CMA), Certified in Financial Management (CFM) and Certified Internal Auditor (CIA) exams. The majority of my professional experience has been in Accounting & Finance with the past 3 years spent in Sales & Marketing as a career development opportunity. My partner will assume the lead role in managing the operation of the franchise, while I will provide a support role over the next 3-5 years. I own a home with a 30 year 5.75% fixed rate loan at a LTV of 70%. I will also be securing a Home Equity Line Of Credit for ~$75,000. I want you to know that because I am funding this loan through personal savings and credit, safety of principal is important. This safety of principal will be achieved by prudent diversification of our investments accross mutiple clients each of which will have multiple customers. In addition, I have been a Lender at Prosper since August 2007 and currently have 26 loans outstanding. I plan to continue my lending activities at Prosper independent of this loan. Thank you in advance for your consideration of this loan. |
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