Advice needed!!
[ADVICE ONLY]
NOT A SOLICITATION-ONLY SEEKING ADVICE I just want to know how this proposal looks for the bank I am presenting it to
[Seeking Advice] Is this a Viable Secured Loan Proposal? Offering Car Lien & 15% Revenue Stake to Mobilize Established Contracting Business
Hi everyone. I’m seeking feedback on a secured loan proposal I've drafted to get my business mobilized. Due to an injury, job loss, and subsequent eviction, I have a temporary liquidity crisis. I need to pay a mechanic bill to get my vehicle back, which is the key asset required to restart my $40-$60/hr contracting business. I want to present this professionally, so I've structured it as a secured investment opportunity. Please critique the terms, security, and overall transparency. Is this structured adequately to attract a serious private lender? 🔐 Secured Working Capital Proposal: Mobilizing Established Contracting Business Borrower: XXXX XXXXXX Contact: XXX-XXX-XXXX (Voicemail/Text Preferred) 📈 Executive Summary: Investment & Security I am an established small business contractor seeking $5,000 in secured working capital to resolve an immediate liquidity issue and mobilize my high-earning operation. This capital provides a clear path to high-return revenue (estimated \mathbf{$40–$60} per hour) and immediate loan repayment capability. The investment is secured by two forms of collateral, minimizing lender risk: a physical asset (vehicle lien) and a dedicated portion of future business revenue. 💰 Proposed Loan Terms Term Detail Principal Amount $5,000 Use of Funds \mathbf{$2,700} to release key business asset (vehicle) from mechanic; \mathbf{$2,300} for relocation/stabilization. Interest Rate (APR) 15% APR Repayment Period 6 Months Security/Collateral Lien on 2000 Chrysler 300M and 15% Gross Contracting Revenue Stake. 🛠️ Operational Necessity and Business Background The need for immediate capital stems from a series of events that created a temporary cash flow crisis: a severe injury (broken heel, June 27th) led to \mathbf{$38,000} in unexpected medical liabilities due to a disputed insurance activation date, followed by forced separation from previous employment and subsequent eviction. Crucially, I am actively pursuing legal remedies for the insurance and employment disputes, but those processes take time and stable resources to manage. I urgently need a vehicle to do the "leg work" required to stabilize my life and business. Immediate Liquidity Requirement The core issue is immediate access to the primary business asset: a reliably repaired vehicle (1234 XXXXXXX). Expense Breakdown Amount Status Total Repair Bill \mathbf{$3,700} Complete, awaiting final payment Funds Secured \mathbf{$1,000} Paid to mechanic Working Capital Required for Release \mathbf{$2,700} High The remaining balance can be wired directly to the repair shop for instant verification of fund use. MECHANIC SHOP VERIFICATION: Shop Name: xxxxxxx Shop Phone: xxxxx Location: xxxxxxx Contracting History and Revenue Potential I am not starting a new venture but restarting an established, proven, high-rate contracting business operational since \mathbf{2016}. Current employment is secured at a gas station (weekly pay) and transferable to the new operational center in XXXXXX, XXXX providing immediate stability. The loan facilitates a transition from minimum wage earnings to contracting revenue of \mathbf{$40–$60} per hour. Established relationships include: -XXXXXXX -XXXXXXX -XXXXXXX 🤝 Repayment Structure and Collateral Commitment My commitment to repayment is secured and professional. I am prepared for the inevitable slow start due to relocation and winter weather, and have structured payments accordingly. Collateral & Security Primary Collateral (Physical Asset): I will execute an official, notarized lien agreement placing the lender as the primary lienholder on the 1234 XXXXXXXXX, filed with the necessary state authority. Secondary Collateral (Revenue Stake): I will sign a revenue-sharing agreement dedicating 15% of gross contracting revenue each week toward the loan until satisfied. Repayment Schedule (Weekly Payments) Repayment Detail Source / Payment Method Phase 1 (First Month) $200 per week paid via Cash App (from current gas station job). Phase 2 (Month 2+) Payments increase to $200 to $400 per week (initial ramp-up/winter slow-down). Payments then increase to $400 to $600 per week (full capacity). These payments will be made via ACH transfer from my NorthStar Bank contracting account. I am prepared to provide comprehensive documentation and enter into a formal lending agreement immediately. I welcome all advice on how to strengthen this proposal.
Just looking for advice on where to send it or post it. Any feedback would be greatly appreciated.