A new loan funded (Finance for an ESTABLISHED Business – $25,000 at 24%). I participated via a manual bid the loan was Autofunding. The borrower had B credit and a 1392557% DTI (unverifiable income). As a reminder my standing orders (and manual bids) only find loans with 0 current delinquencies, 10 or less delinquencies in the last 7 years, and 2 or less public records in the last 10.
With this loan I have $4,747.15 in principal across 74 loans ($64.15 per loan) with an weighted average interest rate of 17.66% and an account value of $5,190.26. Each loan on average is 1.2% of my portfolio with a maximum in any one loan being 3.8%.
Here is the listing:
For the readers that believe in reading the actual description without modification:
Purpose of loan:
My monthly budget:
I am requesting this loan to help finance a business aquisition. I have arrangements made for financing of the majority of the business (about 70%) and am looking for the remaining amount that is needed (20% of which is coming from this loan and the other 10% which I will pull from other areas, once I have this loan in place). As for type of business, I am most likely going to buy a business services company, providing consulting, accounting, and tax preparation. I have had experience in all three areas. However, whatever type of business I decide upon, there would be a cash flow of about $5,000 a month, which would easily cover my prosper payment and my monthly expenses below.
My financial situation:
The business I would be purchasing would be a well established business ( 3 years+) with a great return on investment, which would allow me to repay this loan quickly and on time. As it goes currently, the only reason I have less than perfect credit is I have been making a number of inquiries as far as looking around to get the financing I require. I most recently have worked as a mortgage broker for 2 years, and I know about all there is to know about credit scoring. As such, I would not even dream of making a late payment on this or any loan, for my credit score is probably the best tool I have right now to help me pursue my business dreams by getting me the capital to get up and running. I feel that I am a good candidate for the above reasons, and because I have an insatiable appetite for learning about finances and, as such, have read and continue to read books by Kiyosaki, Gerber, and the like, as well as all sorts of management and finance books. I go to meetings regularly to stay on top of economic trends, cutting edge advertising techniques, and business organization and planning meetings, and I meet at least once a month with a business consultant and I meet frequently with my accountant and lawyer as well, to learn all I can.
Thank you for your time and your interest.
Mortgage/rent: $0/ living with friends
Insurance: $100
Car expenses: $200
Utilities: $0
Phone, cable, internet: $50
Food, entertainment: $150
Clothing, household expenses $100
Credit cards and other loan payments: $300
Other expenses: $300
—————————————
Total monthly expenses: $1200Mortgage/rent: $0/ living with friendsInsurance: $100Car expenses: $200Utilities: $0Phone, cable, internet: $50Food, entertainment: $150Clothing, household expenses $100Credit cards and other loan payments: $300Other expenses: $300—————————————Total monthly expenses: $1200
Here is a graph of all loans on Prosper with B credit and a Any DTI and Loan Amount $20,000 +/-$5,000 funded in the last 100 days:
| Number of Loans | Average Amount Borrowed | Weighted Average | Standard Deviation |
|---|---|---|---|
| 97 | $20,173.16 | 15.98% | 3.55% |
The weighted average plus 1 sigma is 19.54%. The weighted average plus 2 sigma is 23.09%. The weighted average plus 3 sigma is 26.64%. This loan is between the 2 sigma and 3 sigma higher than the mean.
What do you think?
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