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Post by DEERE317 on May 21, 2022 18:28:41 GMT -6
Decided I probably should look at the costs and conditions of taking out a $7,000,000 loan for my operation to pay off ingame debts/negative balance.
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Post by Bryan83 on May 22, 2022 20:39:25 GMT -6
What kind of repayment time frame are you looking for?
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Post by DEERE317 on May 23, 2022 10:02:36 GMT -6
I guess as an example case (and something that I should be able to pay off easier) how about $4,000,000 over 4 months?
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Post by DEERE317 on May 24, 2022 16:02:37 GMT -6
And I’d also like the numbers for $7,000,000.
Thanks.
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Post by Bryan83 on May 24, 2022 16:04:44 GMT -6
Well $4M over 4 months is gonna work out to $250,000 per week, which is difficult to do even if you hit every contract available in your area.
What may be easier to do for you is to write it up as an operational loan, which would require a minimum percentage of your harvest income every year until paid in full. You could of course take contracts and the like and repay early with no penalties, so I think this may be the better option for you. If you did that, we'd require at a minimum 30% of your crop earnings every year until paid.
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Post by DEERE317 on May 24, 2022 19:47:08 GMT -6
Hmm good point lol That could be an option, what would the interest rate on that?
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Post by Bryan83 on May 25, 2022 14:21:41 GMT -6
For that amount, we'd write it up at 3%.
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Post by DEERE317 on May 25, 2022 14:31:43 GMT -6
For what term (or whatever the correct word is)? Monthly I presume? And would it be possible to do this as a straight line of credit due to my chaotic harvest season and consistent milk and pig income? And what is the possibility of doing a full $7,000,000 at that rate?
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Post by Bryan83 on May 25, 2022 15:28:45 GMT -6
So I can still do that at 3%, but as far as the term goes, I'd probably need to see some financial reports on your whole enterprise to come up with a realistic time frame because I need to make sure you are left with some operating capital. I don't want to write you in to a default.
Without seeing your income reports, what would you feel comfortable paying monthly?
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Post by DEERE317 on May 25, 2022 15:46:54 GMT -6
Probably $200,000-$250,000 based on Milk, Solar, and pigs. Easily could (and would) exceed that based on crop sales, beef cattle, and me not being able to estimate well.
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Post by Bryan83 on May 25, 2022 16:17:33 GMT -6
Assuming that, I would write a 3 year loan like this...
TERM: 36 MONTHS 1ST PAYMENT DUE: 60 DAYS FROM DATE OF UNDERWRITING ACTUAL NUMBER OF MO. PAYMENTS: 35 PRINCIPAL AMT: $7,000,000 INTEREST PCT: 3% INTEREST AMT: $210,000 MINIMUM MONTHLY PAYMENT: $206,000 TOTAL CAPITALIZED COST: $7,210,000
During the course of the loan, borrower will be allowed 2 deferments without penalty, any additional deferments will incur a $125 deferral fee. Late payment (if the loan is not paid in full by 15 days following the maturity date) fee is $250 minimum, with an additional $50 per month thereafter. Loan prepayment penalty fee: $0.00, however the total capitalized cost, plus any fees must be paid in order to satisfy the account. This loan qualifies for an additional operational line of credit (OLOC), limit: $200,000. OLOC interest is 5% on the total balance, accrued monthly. OLOC funds must be requested in writing by borrower and approved by the lender.
If this looks good to you, send me a recent screenshot of your financials tab and I'll draw up an official loan contract.
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Post by DEERE317 on May 25, 2022 16:43:13 GMT -6
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Post by Bryan83 on May 26, 2022 16:15:09 GMT -6
These are some shaky numbers. Now the bank is willing to make the loan, but they strongly suggest you look into applying for some government subsidies to help you bridge the gap.
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Post by Bryan83 on May 26, 2022 16:44:40 GMT -6
LOAN CONTRACT
This loan document (hereinafter referred to as "CONTRACT") establishes the terms and conditions under which Community Trader Financial (hereinafter referred to as "LENDER") agrees to lend money to Deere317 (hereinafter referred to as "BORROWER") in the amount specified, and remitted on the time table set forth in the CONTRACT.
TERM: 36 MONTHS 1ST PAYMENT DUE: 60 DAYS FROM DATE OF UNDERWRITING ACTUAL NUMBER OF MO. PAYMENTS: 35 PRINCIPAL AMOUNT: $7,000,000 INTEREST PERCENTAGE: 3% INTEREST AMOUT: $210,000 MINIMUM MONTHLY PAYMENT: $206,000 TOTAL CAPITALIZED COST: $7,210,000
Payments are due on the first (1st) day of every month. A grace period of not more than ten (10) days may be extended at the sole discretion of the LENDER. If payments are not made in full by the close of business on the tenth (10th) day of the month (excluding Sundays and recognized holidays, in which event BORROWER shall have until the close of the following regularly scheduled business day), LENDER reserves the right to place a lien on any and all properties, real or otherwise, until such time as the account is made current.
In the event of loss due to fire, drought, flood or other natural disaster, any and all insurance payments received by BORROWER shall be forfeited to LENDER, not to exceed the total outstanding balance of the loan at time of loss.
During the course of the loan, BORROWER will be allowed 2 deferments,non the approval of LENDER, without penalty. Any additional deferments will incur a $125 deferral fee. Late payment beyond the CONTRACT maturity date (if the loan is not paid in full by 15 days following the maturity date) fee is $250 minimum, with an additional $50 per month thereafter. Loan prepayment penalty fee: $0.00, however the total capitalized cost, plus any fees must be paid in order to satisfy the account. This loan qualifies for an additional operational line of credit (OLOC), limit: $200,000. OLOC interest is 5% on the total balance, accrued monthly. OLOC funds must be requested in writing by BORROWER and approved by the LENDER. There are no specific due dates to repay the OLOC, except that any OLOC funds balance must be paid in full by the end of the CONTRACT term.
Upon acceptance of CONTRACT, the funds in the amount requested will be transferred to LENDER's account within 24 hours.
I, THE BORROWER, HAVE READ, UNDERSTAND AND AGREE TO BE BOUND BY THE TERMS AND CONDITIONS OF THIS CONTRACT.
SIGNED: DATE:
I, THE LENDER OR AUTHORIZED AGENT THEREOF, HAVE READ, UNDERSTAND AND AGREE TO BE BOUND BY THE TERMS AND CONDITIONS OF THIS CONTRACT. SIGNED: DATE:
To start your loan contract, comment "Agree" along with your username as your signature and the date signed.
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Post by DEERE317 on May 26, 2022 17:03:11 GMT -6
Now I'm questioning weather I should do this lol Me and my flip flop indecisiveness... Will research the Government subsidies and payments to see what they bring to the table and bring back an answer.
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Post by Bryan83 on May 26, 2022 17:06:48 GMT -6
Not a problem, take your time. We'll be here for you wherever you're ready.
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Post by DEERE317 on May 26, 2022 18:05:20 GMT -6
Agree -DEERE317
Bryan83, Loan Officer
Interest is what did it, little over 2 ingame seasons of basegame rate interest is what this is at so it’s cheaper for me.
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Post by DEERE317 on May 26, 2022 18:28:30 GMT -6
Which means you get your principal back faster
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Post by Bryan83 on May 26, 2022 19:44:11 GMT -6
Agree -DEERE317 Bryan83, Loan Officer Interest is what did it, little over 2 ingame seasons of basegame rate interest is what this is at so it’s cheaper for me. I've affixed my signature approving the loan. Congratulations. Just stop by this thread to make your payments, or to request funds from your OLOC.
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Post by DEERE317 on May 26, 2022 20:04:05 GMT -6
Sounds good, planning on getting you a chunk of change shortly.
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Post by DEERE317 on May 27, 2022 9:02:11 GMT -6
Payment of $220,000.
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Post by DEERE317 on May 27, 2022 21:20:55 GMT -6
Having submitted for multiple agricultural sustainability grants and having been awarded them I decided to throw them all at this, so am making a $90,000 payment making for a total of $310,000 this month.
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Post by Bryan83 on May 28, 2022 13:22:17 GMT -6
Your payments of:
$220,000.00 $90,000.00
Have posted to your account on 28 MAY 2022.
Thank you.
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Post by DEERE317 on May 28, 2022 20:01:48 GMT -6
Makes for a remaining balance of $6,900,000 if my math is right.
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Post by Bryan83 on May 29, 2022 14:49:47 GMT -6
That is correct, sir.
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Post by DEERE317 on Jun 11, 2022 15:09:49 GMT -6
120k payment
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Post by Bryan83 on Jun 11, 2022 17:50:10 GMT -6
$6,780,000 remaining balance.
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Post by DEERE317 on Jun 21, 2022 19:58:32 GMT -6
Going to “pay” this off purely as my game hobbies have changed some and haven’t played in a while and don’t wish to dictate what I do around this. Thank you and trader for the wonderful opportunity this loan is. Now I just need to play for once to remove this sum from my bank account… lol
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