Upgrading equipment
| Listing Information | |||
|---|---|---|---|
| Amount: | $24,000.00 | Status: | Withdrawn |
| Grade: | A | DTI: | 0% |
| Lender Rate: | 25% | Borrower: | atlzif |
| Finished | State: | GA | |
| Funded: | 10% | Group: | (No Group) |
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Purpose of loan: We need to invest in new equipment for our delivery personnel so that our deliveries can be done more efficiently and help us to reduce costs. The new equipment includes wearable printers, credit card readers, and a specific bluetooth capable Nextel phone -- but all this high tech gear comes at a high price. Per driver, our costs are as follows: $275 per phone (upgrade cost from current hardware) $1,015 per mobile printer $35 per shoulder strap for printer For a total of $1,325 per driver upgraded. We have 25 drivers, so our total cost to do this upgrade is $33,125. We already have $10,000 in savings to invest into the upgrade, but are looking to this Prosper loan as a way to get the rest needed. All these prices already include shipping, taxes, and volume discounts. These printers will allow our drivers to stay out in the field without having to come back to our offices to get additional paperwork after each delivery. This offers us substantial savings, as it will reduce the mileage that has to be paid to the drivers by cutting out the return trips, as well as allowing us to do more deliveries with the same number of drivers since less time will be eaten up returning to the office for their next dispatch. Financial situation: The business did just over $2 million in sales last year, and is on track this year to increase by 20%. This is our fifth year of being in business and we became profitable late last year (our business has very high overhead, as deliveries aren't cheap to perform or to insure). This quarter (while not done for a couple more days) currently has us with a net profit of around $15,000. We could easily wait another 2 quarters and then buy the equipment, but we'd rather buy it now and help us trim costs before going into our slow season (Jun-Aug). The savings will immediately add a minimum of $4,000 to our net profit each month. Without revealing our identity (which would violate Prosper's rules), our business is a courier service of sorts that offers deliveries to businesses and residences. On a side note, I'm also a lender on Prosper and have been for almost 2 years now. I've also had taken out a personal Prosper loan and paid it off. Lastly, my personal credit grade has dropped from AA to A since October of last year, because I refi'ed a mortgage and paid off some personal credit cards within the past month -- and as you may know, paying off a big chunk of personal debt will usually cause your score to dip for a month. My credit score is literally 3 points shy of still being in the AA range. |
| Borrower's Other Listings | |||||
|---|---|---|---|---|---|
| 223891 | Buying our first real house | AA | $20,000 @ 13% | Oct 31, 2007 | Loan created |
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