Summer of Alternative Financing- Use Credit Cards

August 03, 2022

by a professional from Bishop's University in Moncton, NB, Canada

Some new installment features can help with a down payment on a business acquisition.

If you can stomach the cash drain on a 6-, 12- or 24-month amortization, some new credit card features could help you come up with a down payment on a business.

Check out this week’s video: https://youtu.be/xYs-DSfht9s

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Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA

I do not know enough about the options of using credit cards, but for those looking to use an SBA loan product, please remember the seasoning requirements on your cash down payment of typically 90 days and remember you cannot use borrowed funds for an SBA loan. If you plan is to pull cash from a credit card for your down payment right before closing, that is not an allowed source of equity for funding your SBA loan. If you are going to use funds from a credit card, you need to be sure you have seasoned that money for 90 days plus. Lenders will look at any large deposits on your bank statements going back at least 90 days and require you to source them. If they came from borrowed funds it can disqualify you unless you can come up with a different source of funding. Since most Bank's do not verify all liquidity and sources in detail until after approval, you can spend a lot of time getting a loan approval just to loose it if you do not have seasoned funds on hand. Again, I just wanted to make people aware.

Reply by a searcher
in Minneapolis, MN, USA

Interesting idea

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