Stoney Daw
Winston Salem, NC (USA)
Role(s):
Founder/Owner/Principal
Gear Heads Racing LLC
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Startup
Location:
Winston Salem
Industry:
Manufacturing
Year Founded:
2009
Number Employees:
1-10 people
Description:
I am in the process of starting a small toy/diecast car business. A potential supplier threw me a curve ball and offered to sell me his hard assets. These assets are 2.875 Million in molds, 2.2 Million in current inventory, and a warehouse on 20 acres for 750K worth 1.2-1.5 Million. He is ready to retire and has been winding down his business for the last three years. His other business in consulting nets him 90 Million a year where his toy business nets him just over 3 million a year when at full production. We have agreed in principal to a majority of owner financing. The current owner will remain with the company as a consultant for 6 months to ensure my success. He has also graciously agreed to give me total access to his database of clients and distributors, as well as his personal guarantee to secure purchase orders for our products through big box retailers like Walmart, Target, Toys R' Us, COSTCO, Sam's Club, (URL removed). Our products will also be offered at multiple race tracks across America as well as toy and hobby shops. Our other outlets will be QVC, HSN, and various internet retailers.
The owner wants a down payment of 800K before we can move forward and I am going to need 200K for working capital. The problem is that the banks don't know enough or care to know enough about the toy business all they want to do is car loans and home mortgages.
I need to borrow 1 Million which is roughly 20% of the cost of these assets. When I find an individual or lender who understands the concept of the loan with a full repayment plus interest in 90-120 days then I can move forward.
Concept 1- Attach a lien to the molds, I sell the inventory, and pay off the loan.
Concept 2- Attach a lien to the inventory, I use the molds to secure purchase orders, I factor those and pay off the loan.
Concept 3- Attach a lien to the Warehouse, I can sell the inventory, factor purchase orders and pay off the loan.
My personal credit is terrible due to a nasty divorce that forced me into bankruptcy back in 2004. Until that happened I was a 700+ beacon score. But this loan isn't about my personal credit history. It is about an asset secured loan with multiple repayment options in 120 days or less.