Need loan - will repay in 40 days or less with 3% interest.

**George0797** · 06-04-2011 02:11 PM

Hi,

I'm 18 and living in the UK.

6 months ago I started piloting a business model of selling authentic high-value designer clothing and accessories on eBay (and my own homemade website).

In those 6 months I have had a turnover of just over £3000 and a total profit of £892.45.

I get 95% stock on a sale/return basis, so for the 1 in 10 items that don't sell after 30 days I can return at no extra cost.

I'm looking for a loan of between £500 and £2,000. I will repay the amount in full within 40 days, plus 3% interest.

If you have any thoughts, comments or inquiries please leave a message below

.

**StephenMLevinson** · 06-04-2011 03:39 PM

I don't think you're going to get anyone, unfortunately. It's too small of a return for the amount invested.

**George0797** · 06-04-2011 03:55 PM

Thanks for the comment Stephen, it's great to get some feedback.

This would be more of a test-run type thing to find a compatible investor, with the idea of repeat business on a larger scale with a significantly higher rate of return.

**mtnjkwe** · 06-04-2011 04:41 PM

Hi George,

First off love your enthusiasm! Given the size of the loan you require and what and where you need to invest in it will be harder for you to get this loan online than offline.
Your best bet: Friends and Family .

Thanks

Martin

**StephenMLevinson** · 06-04-2011 06:19 PM

Originally Posted by George0797

Thanks for the comment Stephen, it's great to get some feedback.

This would be more of a test-run type thing to find a compatible investor, with the idea of repeat business on a larger scale with a significantly higher rate of return.

Hi George, I understand. But keep in-mind no investor will invest if the deal he wants is after the initial deal. He'll just tell you to come back to him when you can offer a higher return.

The problem with your investment is it's unreasonably too high of a risk for the return. Who would risk $2k of their money, to only get back $2,060 in return? I highly doubt you'll find someone willing to do that. I have more than enough money to invest in your $2k but I'm not putting $2k on the line for $60 because if I lose the $2k I'm out of $2k but if I win I only get $60. If I put $2k on the line to get back $2500, then that'd be more legitimate and you will likely get investors at that price point.

Best of luck.
Stephen

**George0797** · 06-05-2011 03:47 AM

Ok. I though a 3-4% return (36-48% APR) on an investment over a 30 day period was pretty good, but I understand your point.

Thanks for the feedback Stephen and Martin, it's all very helpful.

**StephenMLevinson** · 06-05-2011 02:35 PM

Originally Posted by George0797

Ok. I though a 3-4% return (36-48% APR) on an investment over a 30 day period was pretty good, but I understand your point.

Thanks for the feedback Stephen and Martin, it's all very helpful.

George, I hope you understand what I'm saying. APR doesn't come into play in this at all because you're only offering a return of 40 days. Annual percentage rates deal with yearly 12 month cycles, you can't just multiple 3% x 12 to get an APR. If you said to me I need $2k and will repay back with a 36%-48% return in 12 months, that's completely different from you saying you'll give back 3% in 40 days. Don't confuse what you're doing with APR. They're not even in the same universe as each other.

**George0797** · 06-05-2011 03:57 PM

APR can be used when referring to short term loans in the UK.
I'm not suggesting an annual repayment, just the potential rate of return over a 365 day period.

**StephenMLevinson** · 06-05-2011 04:15 PM

Ok, so if I give you $2k, in 12 months you'll give me back $2960?

**George0797** · 06-05-2011 04:34 PM

You can run 5 kilometres per hour even if you're only going to run for 10 minutes.

**oolag** · 06-05-2011 05:03 PM

If there was a Like button for that reply I would like it!

**StephenMLevinson** · 06-05-2011 06:56 PM

Originally Posted by George0797

You can run 5 kilometres per hour even if you're only going to run for 10 minutes.

What does it matter what the yearly APR is you're only offering 3% return. It's like saying i'll offer you a 5000% apr on a $1 loan. But the length of the loan is only one day. No one cares about hypothetical numbers. The fact is you're offering 3% return on a loan in 40 days. That's it. Anything else is completely irrelevant.

You can also say to the investor "I'm offering a 144% on a 12year/apr." But No one cares about that number. They want to know what exactly they're getting for the duration of the loan. Which is 3% for 40 days. I don't know why you insist on mentioning apr. Do you think it makes your offer sound more attractive?

I have more than enough chump change to fund your project, but you're not being clear and you're focusing too much on what the return would be in a year, when we're only talking about 40 days and 3% return.

Originally Posted by oolag

If there was a Like button for that reply I would like it!

You don't even know what you're talking about.

**oolag** · 06-05-2011 07:13 PM

Hey mate, I know your just trying to help and correct him, but no need to demoralise him. I was Just trying to put a smile on his face.

And how the do you know I don't know what I'm talking about? Don't make assumptions! I actually studied business finance at Queen Mary my father is a lecture at UCL on the subject, so don't have to have a go at me. And on top of that I wasn't speaking to you.

**George0797** · 06-06-2011 01:59 AM

I think we have got a bit off topic here.

I apologise if I've been unclear, I didn't intend to be.
I'll make sure I clarify this point more in the future.