Investors, at large, are unable to go ahead with a foreclosure or a pre-foreclosure deal because of finances. There are many ways in which one can assist a homeowner in trouble without having to spend one’s own money by using credit cards, personal line of credit or equity line of credit. However, this will lead to an increase in the debt to income ratio because of which the credit score may suffer.

One could get a partner in the deal who would put in the money and share the profit. Nonetheless, there is now a better way to help homeowners in foreclosure and still keep all the profits. This is where the business unsecured line of credit comes in. One can help the homeowners in foreclosure and pre-foreclosure while still holding on to the profits.

The following are some of the steps to apply and build a line of unsecured business credit:

To begin with, one needs to know what an unsecured business line of credit is. It is not attached to your investment and is not reported on your credit unless you default. You are given a checkbook by the lending institution and trusted that you use it safely.

One needs to necessarily have a business and this does not include sole proprietorship. One needs a Corporation or an LLC, which is two years preferred. One must have an EIN number. Here is a tip. One can purchase a shell of a two year old business for nearly nothing. One can then instantly apply for the business line of credit.

The business then needs to be registered with Dun and Bradstreet, which are the pioneers of the business credit profile. They control 70 percent of the market share for business credit reporting. They have a good offer in terms of premium packages.

Similar to the personal credit score, a business has a credit score by the name  of Paydex score. It has to be from 0-100 (0 being the lowest).

While applying for an unsecured business line of credit, the lending institution asks for the credit, which is expected to be a score of 680+. In the case of one having a bad credit one can partner someone in the business and apply through that other person.  No bankruptcy is allowed.

After having done all of this, one can now fill out the applications. Lending institutions, in general, will give a line of up to $50,000. For anything in excess of this figure one needs to provide them with the tax return for two years.

These steps however are not hard, are fast and there are exceptions to these norms. Advisably, one should apply for five lines of credit.

The following are the names of some renowned lending institutions one can apply to:
Wells Fargo, Bank of America, Suntrust, Wachovia, WAMU, Bank one.