Loans paid off by credit cards -- contract transfer?

[scm007]

Hello all. I recently started a small business and financed it through loans gotten from a large bank. In order to get the loan, I told them the money was going to go towards rent and employee compensation. Any other purchase is excluded from this. I'm just curious, if I pay off the loan with my 0% credit cards, do these exclusions transfer to the credit card debt? Or can I use the the credit cards to pay off the loan and then use the loan money to buy equipment?

Steve

 

[Zigner]

Hello all. I recently started a small business and financed it through loans gotten from a large bank. In order to get the loan, I told them the money was going to go towards rent and employee compensation. Any other purchase is excluded from this. I'm just curious, if I pay off the loan with my 0% credit cards, do these exclusions transfer to the credit card debt? Or can I use the the credit cards to pay off the loan and then use the loan money to buy equipment?

Steve

US Law Only

PS: This means that you didn't show your state.

 

[Mister Darcy]

Hello all. I recently started a small business and financed it through loans gotten from a large bank. In order to get the loan, I told them the money was going to go towards rent and employee compensation. Any other purchase is excluded from this. I'm just curious, if I pay off the loan with my 0% credit cards, do these exclusions transfer to the credit card debt? Or can I use the the credit cards to pay off the loan and then use the loan money to buy equipment?

Steve

No, the exclusions don't transfer, but you are setting yourself up for some real trouble. Read the fine print on those 0% credit cards. Miss one payment on those cards, or any other account, and you could find yourself with an astronomically high interest rate. Not a good idea to finance business debt on a credit card.