Borrowing against future Lump Sum

[Little Eagret]

I'm 58 y.o.

I was in PS but left to start my own enterprise.

Whilst this is doing OK I find myself a little short every month and this is starting to cause me to run up debt.

I'm due a decent lump sum in 1 and 3/4 years (70k+).

I'd like to borrow 10 k against this to tide me over to May 2018 when I will receive this + my PS pension.

The BoI will only lend based on current income and the Credit Union are willing to give me a much smaller amount.

Does anyone know how I can borrow 10 k using lump sum /pension situation as collateral?

Thanks LE.

 

[Gordon Gekko]

Would a friend or family member do it?

 

[Little Eagret]

No I don't want to go down that route, was thinking more if some bank or credit Institution would do it.

 

[Steven Barrett]

You can't assign any pension benefits, it's not allowed. The bank won't accept something as collateral that they cannot enforce in the event of a default.


Steven
www.bluewaterfp.ie

 

[Little Eagret]

Ok, Thank you --would they even consider it as a plus in a loan application do you think?

 

[Steven Barrett]

They can't consider it at all, it is not allowed.


Steven
www.bluewaterfp.ie

 

[michaelm]

Given that it's a struggle to get a loan then and you're only talking about €500/month shortfall over 20 months I'd take a multi-pronged approach with a full spending review, bank the CU loan, look to increase my Credit Card limit with a view to speeding that up over the period as necessary (assuming it's not already maxed), perhaps switch any life/health/car insurances that are paid yearly to monthly, ask for a mortgage payment holiday, etc.

 

[44brendan]

Ok, Thank you --would they even consider it as a plus in a loan application do you think?

Response to your original query is no. Unfortunately I know of know legitimate financial institution that would consider lending against such a proposal in the current climate. While you don't want to consider family friends you might re-think this strategy as given your own certainty of funds receipt in 3/4 years time the proposal would make more sense to a family member who will trust rather than a bank/CU who focus only on your earnings/repayment capacity.