Paying Off Seller's Note
| Listing Information | |||
|---|---|---|---|
| Amount: | $5,500.00 | Status: | Loan created |
| Grade: | B | DTI: | 0% |
| Lender Rate: | 16% | Borrower: | 1BizLady |
| Finished | State: | CO | |
| Funded: | 100% | Group: | Women Entrepreneurs |
| Loan Information | |||||
|---|---|---|---|---|---|
| Loan Status: | Current | Origination Date: | 2008-07-08 | EricsCC ROI: | 14% |
| Status History | |
|---|---|
| Jul 09, 2008 | Current |
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Purpose of loan: This loan will be used to pay off the Seller?s note for the dog grooming shop we bought. The seller has offered us over $4000 in discounts for paying the loan off early. My financial situation: We are good candidates for this loan because my brother-in-law and I are the perfect team to run this business successfully. He is the dog groomer/shop manager/dog whisperer and I am a Business Broker with a daily focus on business/financial analysis and a background in marketing. He runs the shop and I take care of the books and advertising. This shop has been in business as a dog grooming shop for the last 17 years. Sales have doubled since we bought the shop 7 months ago. We remodeled the shop, bought new equipment, and created a customer service focused environment. There are 3 full time and 2 part time groomers that all have at least 5 years experience in the industry. We are averaging over 120 dogs a week. I have included figures from last month. Please note that my brother-in-law is being paid under the Employee Expense. The $4,851 is pure profit. You might be wondering why we need this loan based on these figures. The truth of the matter is that the seller is only offering the prepayment discount if we pay her off immediately. We could write her a check but it would deplete our working capital. Lack of working capital and unexpected major expenses are a large part of why businesses fail. I will not put us in a position to fail. Monthly Revenue: $ 17,068.45 Monthly expenses: $ 12,216 Grooming Sales 17,068.45 Expenses Monthy Loan Payment 332.00 (Being Replaced by Prosper Loan Payment <$275 a month) Credit Card Processing 351.38 Employee Commissions 9,013.35 Rent 1,300.00 Shampoo 300.00 Towels 320.00 Utilities 600.00 Total Expense 12,216.73 Net Income 4,851.72 My personal financial situation: Over 6 years ago, I entered into a credit counseling program to pay off over-accumulated college credit card debt. They helped me pay off all of my debt but unfortunatley hurt my credit. Since then, I have never had a late payment. I have no debt other than my mortgage and one credit card. My income in unconfirmed because I work on 100% commission. I currently have nearly $96k in commissions outstanding. My husband pays for all our household expenses and I do not rely on any income from the groom shop. |
| Borrower's Other Listings | |||||
|---|---|---|---|---|---|
| 332579 | Paying Off Seller's Note | B | $7,500 @ 21% | May 14, 2008 | Withdrawn |
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