Unsecured Business Lines Of Credit

Many investors are unable to pursue foreclosure or preforeclosure deals for lack of money. There are many ways to quickly help a homeowner in trouble without spending your own money. You can use your credit cards, your personal line of credit or equity line of credit. By doing so you are increasing your debt to income ratio. Consequently, your credit score may suffer. You can bring a partner in the deal. Your partner will put up all the money and you can split the profit. In this case you're giving up a big part of your profit. Sometimes your partner may want half of the profit. There is a better way to help homeowners in foreclosure and still keep all the profit for yourself. The Business Unsecured Line of Credit is the secret weapon many investors are using to play the pre-foreclosure and the foreclosure game and make a truckload of money.

Some investors have built up to 7-figure unsecured business line of credit.

In the following lines I'm going to give you the steps you can apply and build your own 6 to 7-figure unsecured business line of credit.

First, what is an unsecured business line of credit?

It's a business line of credit that is NOT attached to your investment and is not reported on your credit unless you default.

The lending institution basically gives you a checkbook and trust that you'll use it wisely.

Here are 7 steps you want to follow to succeed in building your Business Line of credit.

Step 1. You need to have a business

Sole proprietorship won't do. You need a Corporation or an LLC, two years preferred. You must have your EIN number. Here is a tip. You can purchase a shell of a two years old business close to nothing. You're instantly ready to apply for your business line of credit.

Step 2. You need to register the business with Dun and Bradstreet.

Dun and Bradstreet is the titan of business credit profile. They control 70 percent of the market share for business credit reporting. Go to http://www.dnb.com and select their premium package. You can call the number on the website.

Step 3. Have a Paydex number.

Just like your personal credit score, your business has a credit score called Paydex score. It is between 0 to 100 (0 been the lowest).

Step 4. No bankruptcy allowed

Although you're applying for an unsecured business line of credit, the lending institutions look at your credit. They expect you to have a score of 680+. Here is the good news in case you have a bad credit. Add a credit partner in your business and apply through him.

Step 5. Apply for your credit line

You're now ready to fill out your applications. Many lending institutions will give you up to $50,000 line. Over that number you need to provide two years tax return and your mother-in-law as a bonus package. There are exceptions. I got approved by Wells Fargo for $100,000 just over the telephone. My advice is to apply for 5 line of credit within 30 days. Here are some names of lending institutions you can apply with: Wells Fargo, Bank of America, Suntrust, Wachovia, WAMU, Bank one.

Jacques Coquerel is a real estate investor based in Atlanta, Georgia. He has made more than 750 transactions since 1996. You may visit one of his sites [http://www.reonline101.com] and receive a 13-part FREE ecourse on real estate investing.

Unsecured Bad Credit Business Loans - How To Get One!

If you are a business that is already in operation, and provided that you accept credit cards, you can almost always get an unsecured bad credit business loan. This is due to the fact that there are a number of lenders that are willing to provide you with a line of credit based on how much money that you have in credit card charges on a monthly basis. It should be noted that most of these lenders will attach their automated clearing house account to your merchant account. Each time that you conduct a transaction, a small portion of the charge will be automatically redirected to the lender. This is one of the ways that they are able to ensure that they receive the money they are owned on an ongoing basis. The risk for them is that a business may not go as planned, and they may lose their capital investment. As such, if you have credit issues then this is one of the best ways that you can receive financing for your small business.

One of the other ways that you can get a bad credit business loan is to work with a private lender. A private lender will look directly at your business rather that your personal credit history. However, and as we have mentioned before, the costs related to obtaining a private investor loan can be somewhat high. This is due to the fact that there is an additional level of risk for the lender. In these instances, you may want to provide a certain level of collateral security to your private investor. If you have a significant amount of tangible assets without a lien then you may be able to negotiate a much better interest rate with a private lender.

Finally, in almost all circumstances where you are seeking an unsecured bad credit business loan you are going to be required to have a business plan. Your business plans should be perfect, as again, you are seeking to obtain credit solely based on your business and not your previous credit history. Your business plan should have a detailed profit and loss statement, cash flow analysis, balance sheet, and a break down of how you intend to use the bad credit loan funds for your business. As always, we strongly recommend that you work with a certified public accountant as well as an attorney when you are reviewing documents related to a bad credit business loan as there may be clauses that you will need to adhere to at all times.