John, I agree with you about the responsibility part of your comment: The CC company will ask for some kind of security. But I have also worked with such companies that offer up to a seven-year amortization with a two-year baloon, which is a perfect timeframe for someone to get in, prove themselves and then obtain conventional funding. It can be done; but you have to be extremely careful!

Web reference: www.bafgroup.com

First, is the advance company going to allow the transfer without holding you responsible if he craps out? Second, most advance companies only offer a few months of CC sales to advance you--- is this enough?????

This is not a terribly unusual situation, and can be a good opportunity. There are several key questions that can let you know immediately whether it is worth looking into. First, for how long is the contract with the CC company? Anything beyond the length of the note might be questionable. Second, what are the terms of the note, as well as the percentages and fees associated with the CC transactions. If they terms are too high, it may not be worthwhile, no matter how desperate you are. Third, is there a balloon? Normally, these kinds of deals in our area have a two-year baloon. This is okay, because it gives you two years to prove the validity of the business to a bank, for a refi that will be more of a permanent loan situation. Fourth, you need to get from the CC company the terms and the amount of each monthly payment, IN WRITING! Finally, how much money will the CC company extend. Sometimes, the amount is too low for the deal you might be considering.

Web reference: www.bafgroup.com

We need more details. How much are we talking about here? Four figures? Five? Six? Are you a business or an individual looking to buy? What type of business are you talking about?

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