Borrowing against future Lump Sum

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.

Would a friend or family member do it?

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

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
http://www.bluewaterfp.ie (www.bluewaterfp.ie)

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

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


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)

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.

Little Eagret said:

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

Click to expand...

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.