Rider and Garage is a successful business that is well established in Florida. We operate and provide a wide range of maintenance and repair services for automobiles, recreational vehicles, and motor vehicles. We began operations 2 years ago as a veteran-owned small business offering repair services to local drivers and motorists. We advertise our services on our website riderandgarage.com and market on social media channels.
Last year, our annual sales totaled ($500000). In the first year of business, we earned a net profit of ($150000). We have maintained a steady balance in the past 2 years. We began with 2 workers and one location. We have grown consistently in the past 2 years. We now employ 6 workers.
Due to the increasing interest from our loyal customers (100+), one-off customers, and prospecting clients, we have decided to scale up our services beyond maintenance and repair. The loan we are requesting is for this diversification, which we anticipate will increase sales by $1,070,000 and exponential growth by 33.6% CAGR over the next five years.
We would like to pursue this endeavor in the first quarter of 2021, but this move will require more funding than our cash-flow can sustain. Despite the lack of a lump sum large enough to cover this additional expense, our budget can allow for monthly payments over time given sufficient financing. Our projections, which are enclosed, indicate that increased sales will generate enough revenue to repay this loan by 2023. We are confident that you will find us a safe credit risk.
Thank you for reviewing this letter and the accompanying financial documents. I look forward to hearing from you at your convenience.
Sincerely,
Luther Pynas
Owner/CEO
Ride & Garage
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