Executive Summary:
Abner Fors, the principal of a future LLC, is seeking a $50,000 bridge loan for a 1-year term, with interest-only payments, to improve the creditability and approval odds of funding for the LLC from the Small Business Administration (SBA) and other sources. Abner Fors is an active participant in the credit and funding program guided by SBA advisors and the FDIC. The loan will be used to purchase and maintain payments on $300,000 in collateral, obtain an insurance policy for the Principal of the LLC, establish the LLC, pay off immediate debts and expenses of the principal, and cover interest payments to the lender.
Business Description:
The proposed LLC, under the leadership of Abner Fors, aims to establish a profitable e-commerce business through the purchase of a "done for you" Amazon FBA wholesale franchise from Ecom Authority. The franchise offers a comprehensive solution, including established supplier relationships, optimized product listings, and a proven system for selling on Amazon. The LLC will leverage the franchise's resources to generate revenue by selling products on the Amazon platform.
The $300,000 in collateral will be used to secure inventory, cover operational expenses, and invest in marketing and promotion to drive sales. An insurance policy for the Principal of the LLC will provide protection and ensure business continuity. The establishment of the LLC will provide a formal legal structure for the business, ensuring compliance with laws and regulations, and protecting the personal assets of the principal.
Market Analysis:
The e-commerce industry, particularly the Amazon marketplace, offers significant growth opportunities. The global e-commerce market was valued at $3.53 trillion in 2019 and is projected to reach $6.54 trillion by 2023, growing at a CAGR of 14.7% from 2020 to 2027. The "done for you" Amazon FBA wholesale franchise model from Ecom Authority provides a proven and streamlined approach to selling on Amazon, reducing the barriers to entry and minimizing risks.
Financial Projections:
The LLC is projected to generate $500,000 in revenue in the first year of operation, with a gross margin of 40%. The operating expenses, including inventory costs, marketing expenses, and overheads, are estimated to be $350,000, leaving an operating profit of $150,000. After accounting for the interest payments on the bridge loan, the LLC is projected to have a net profit of $100,000 at the end of the first year.
Repayment Plan:
The bridge loan of $50,000 will be repaid in full at the end of the 1-year term, along with the accrued interest. The interest payments will be made monthly, and the principal amount will be repaid in a lump sum at the end of the term from the LLC's profits. The LLC's financial projections indicate that it will generate sufficient profits to repay the loan in full at the end of the term.
Conclusion:
Abner Fors's business proposal presents a compelling opportunity to establish a profitable e-commerce business through the purchase of a "done for you" Amazon FBA wholesale franchise. The proposed LLC, under the leadership of Abner Fors, has a solid business plan with detailed financial projections and a clear repayment plan for the bridge loan. The loan will be used to acquire collateral, establish the LLC, purchase the franchise, and cover immediate expenses. This bridge loan will improve the creditability and approval odds of funding for the LLC and facilitate the successful establishment and operation of the business. We invite interested angel investors to consider this business proposal and support Abner Fors in realizing the potential of the future LLC.
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