Are these costs acceptable to finance our initial flips?
Hello,
We just got a pre-approval to potentially get an unsecured business credit card with a 100k limit, Interest free for the firts 6 months.
Now here's the fine print, if we decide to go with this card, the cost to get it will be a one time 10% fee charged at the backend(fee will be charged to the card) by the company assisting us on getting approved and then to be able to get cash from the credit card another company will charge 6% of whatever amount we want to withdraw. Of course it will make sense to withdraw the full amount to pay the 6% once.
In few words, it will cost about $15400 to get this business card. No other costs are involved.
Our credit is not the best, that's why we are considering this option.
Would these costs make sense for someone with challenge credit looking to buy his first property to flip?
Thanks!