Best advice to give to someone tyring to use prosper loans

aceduecetrey · Sep 11, 2008

Here is the situation, I have a personal friend who is in the process of getting a business loan, but things are dragging out and she is getting nervous on the wait time. She owns a bar and as most of us know (me all too well) that August/September are the worst time of the year for bars/restaurants outside of places like the Hamptons and what not. Anyways, she is needing a influx of cash straight away. I told her about Prosper and told her to look into it. What advice should I give her. She has a 700+ score with all three credit bureaus and the business is debt free, but she has considerable personal debt, but has good income from her "real" job and claims nothing from the cash heavy bar.

My question is this, does it look bad to pursue the maximum of 25k and also what interest rate should she be willing to pay to be the most appealing to lenders? This will be a short time deal just until she gets her real line from a comercial lender.

whalewager · Sep 11, 2008

Is she good looking

aceduecetrey · Sep 11, 2008

georgejefferson said:
Is she good looking

I think so

whalewager · Sep 11, 2008

How much she need.

sean1 · Sep 11, 2008

With scores over 700, tell her to go to a bank and use the bar as collateral. She'll be well under 10%. Much like a mortgage if she owns the property.

aceduecetrey · Sep 11, 2008

georgejefferson said:
How much she need.

Well she is getting a ( or should say waiting on) 150k comercial loan that will basically pay off her personal loans and credit cards that she used to buy the business and improve it during the past 3 years. She should be able to consolidate everything and have about 60k or so left for additional improvements. To answer the question though she does not know how much longer this is going to drag out and would like to have about 20k or so just to relieve the pressure that these months bring.

aceduecetrey · Sep 11, 2008

sean1 said:
With scores over 700, tell her to go to a bank and use the bar as collateral. She'll be well under 10%. Much like a mortgage if she owns the property.

She did try that about a year ago but her scores were lower then (670ish) and the main hang up was that she is in a strip mall where she does not own the property, but has a lease.

SoCal · Sep 12, 2008

if she is using the short term loan to buy equipment, suggest an equipment lease. article 179 tax code benefits leasing equipment. monthly leasing payments can be deducted which effectively lessens the cost of the lease. don't run from the interest rate, be sure to factor in the tax deduction.