financing motorcycle inventory
| Listing Information | |||
|---|---|---|---|
| Amount: | $25,000.00 | Status: | Loan created |
| Grade: | AA | DTI: | 8% |
| Lender Rate: | 14% | Borrower: | drjac4 |
| Finished | State: | FL | |
| Funded: | 100% | Group: | (No Group) |
| Loan Information | |||||
|---|---|---|---|---|---|
| Loan Status: | Current | Origination Date: | 2008-05-28 | EricsCC ROI: | 13% |
| Status History | |
|---|---|
| May 28, 2008 | Current |
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Purpose of loan: This loan will be used to finance a buildup in the inventory of motorcycles held by my company, Motores Nueva Asia, in Santo Domingo, the capital of the Dominican Republic. I founded the company in early 2007, and have an exclusive distribution relationship with an important manufacturer of Chinese motorcycles. Apart from our central facilities, we have ten concessionaires scattered around the country. Sales started in March of 2007, and have grown to around 40 a month in March and April of this year. The company is in the process of purchasing its showroom, presently rented, and I have already deposited with a local bank $100,000 as a down payment. We have grown the staff progressively, and now have eleven--a manager, a finance officer, a sales head for individual buyers, a sales head for concessionaires, a manager for the parts and repairs department, and six other employees including four mechanics. Although the company was founded slightly over a year ago, in both March and April of this year the company was profitable. Furthermore, the staff and systems are now in place to accelerate growth. Therefore, I want to increase the number of motorcycles in inventory from 132 at the end of April with a landed cost of $104,000 to about 200 with a landed cost of around $160,000 at the end of August, prior to the heavy sales season which starts in September. While I have the personal liquidity to finance that growth our of my own pocket, I would prefer to have additional funds available, since as will be apparent below, my access to significant capital occurs only in October of this year.. My financial situation: I am a broker with the U.S. office of a Swiss bank (my full-time professional activity), and have a comfortable mid six figure income. I also own about $2.5 MM in stock of the company I work with. The stock becomes available to me for sale in each of October 2008, October 2009 and October 2010, so that I will have no difficulty paying off this loan in case the motorcycle business does not generate enough cash flow (but given my experience so far, I am quite sure that it will). Apart from that, I have a doctorate in economics and have worked as a private banker/investment advisor for the last twenty years, all of which indicates that I take my responsibilities seriously and have been successful at what I have attempted. |
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