Eric's Credit Community

I need $25,000 to help fund the start-up of my new business.  My name is Lou, from Mary Louise, and my husband is Eric.  During the planning of our wedding we had difficulty renting something other than the average, run-of-the-mill chairs.  After analyzing the local market, we determined that there is room for another high-end furniture rental company.  We initially plan to rent one style of chair, keeping the business small and easy to manage.  The high-end event rental business is very segmented and niche providers like us are increasingly popular and successful.

We plan to purchase 200 @ $206 each, totaling $41,200.  We have $11,000 to put into the business.  Our plan is to hold $7,000 in reserve to cover loan payments and fixed costs (which are very low ? only the cost of storage units for the chairs ? about $300/month.  We must borrow $37,000.  We would like to borrow $25,000 through Prosper.  $10,000 will come from small business mico-lending company Accion @12.5% with the remainder borrowed as personal loans from Citibank and University of Wisconsin Credit Union.  Our total loan commitment will be about $1,200 per month, the storage rental takes the monthly total to $1,500.  Our reserve will ensure payment for the first four months and by then we should have funds from bookings.
   

These chairs are in high demand and will be rented for an average of $30-35 each.  With an average rental of 150 chairs, one contract will secure loan payments for two months.  We will not be taking regular salaries until the business shows a profit.  My husband and I make ample money to pay back the loan from our own pocket.  By carefully allocating our disposable income we will have close to $3,000 each month to pay the loan and meet other expenses. 

 Our "in case of emergency" plan is to sell the chairs.  We have established a price (based on eBay and Craigslist sales) of around 75% of the retail value, or @ $215.   If we are unable to make this business a success by the time we go through our reserve we will then begin selling the chairs and pay back the loan. If you have questions please ask us.  We also have a business plan available for review. 



Again, Thanks!  Lou