Expand Inventory for Successful Hobby Business
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|Loan Status:||Paid||Origination Date:||2008-09-10||EricsCC ROI:||21%|
|Sep 10, 2008||Current|
|Oct 08, 2011||Paid|
Purpose of loan:
Some people like to sit by the pool and read a book on the weekend. I like to indulge in my love of cars and make a little bit of money while I am at it.
This loan will be used to build inventory for a hobby business that will eventually roll into/be sold to an established business.
I am very involved with the automotive performance parts aftermarket for German cars (BMW, Audi/VW/Porsche, and Mercedes) and I am always looking for opportunities to make some money for myself as well as help out a good friend who has an established business. What I do is prove that a new product can make money in the existing market and then pass on the products to my friend and then assume a silent/passive investor role.
As an avid car enthusiast (I have driven many German cars and am currently a German car owner), I am keen on the needs of other enthusiasts and I look for new products that I can bring to the market. The tricky part is gauging demand and marketing a new product, but I have a track record of success. In the past two years, I have test marketed a new wheel (made $10K for myself in 8 weeks) and pressed for a new exhaust pipe (made $20K for my friend in 12 months).
This new test will be specific for suspension products. I have a lead to high quality suspension products that can be imported for a fraction of the retail price that can be priced competitively and still sold much cheaper than other products on the market today. The potential is great and the aftermarket for these types of parts is established.
The reason why I focus on German cars is because German car owners generally have disposable incomes that are able to support luxury good purchases on lifestyle (clothes, bags, aftermarket car parts, etc.). From looking at how much my friend's company is making, I know that German car owners have no problem spending large amounts of money to make their cars more fun to drive.
As an exit strategy, I can liquidate inventory at cost and re-pay all borrowed funds.
My financial situation:
I have a great day job, a Bachelor of Science degree in Economics and Biology from a top 4-year university, low monthly personal expenses, and a good track record for paying bills on time. I have no plans on leaving my full-time day job. The reason why I am pursuing this loan is to give Prosper a try and partner up with the smart Prosper lenders out there on this business venture by sharing my profit from this hobby business with Prosper lenders in the form of interest.
Why was this re-listed?
If you look at my history, you will see that I have re-listed a few times. The reason for this is because I was still in negotiations with the factory on terms of the business venture. Also, I needed a better idea of the interest rate Prosper would be able to provide for me so I could estimate cash flow and get buy-in from my business partners and friends that I was going to invite to bid on this loan. At this point, I have negotiated final terms with the factory, have the operational plan drawn out, and all my friends think this is a great idea so I am ready with finalizing the loan request. I plan to fund this loan once it is completed as long as the interest rate is within a reasonable range for my credit grade. As I was becoming more familiar with Prosper over the course of the last two weeks, I also added funds and am also funding loans for and with other members (about 20 so far).
Thanks for reading over this loan request, thanks to all my past bidder, and thanks for your consideration in bidding on this loan. I am a believer in Prosper and I look forward to your support. Let's make some money together!
|Borrower's Other Listings|
|380779||Expand Inventory for Successful Hobby Business||A||$15,000 @ 19%||Aug 11, 2008||Withdrawn|
|382075||Expand Inventory for Successful Hobby Business||A||$10,000 @ 29%||Aug 13, 2008||Withdrawn|
|383054||Expand Inventory for Successful Hobby Business||A||$20,000 @ 19%||Aug 14, 2008||Withdrawn|
|495435||Refinance Prosper Loan for Business||C||$7,500 @ 17%||Feb 23, 2011||Loan created|