I'm confused. How to: Unsecured Business Lines of Credit

[Michael Ablan]

Hey guys,

Sorry if this topic has been answered a million times in the forum.  I've been scouring different articles, blogs and forum posts and have gathered a general outline of the process, but I'm confused on a couple things.  Could someone help clarify a couple of my questions please?

Topic:  Acquiring unsecured business lines of credit through a local lender

What I think I understand so far:

1. Establish a business entity
2. Open a business checking or savings account and make min deposit
3. Have credit score over 700.
4. Apply for easy to get Business lines of credit through sources like Home depot, lowes, ect.  Acquire 3-5 and season for 1 year.
5. Spend money.  Keep utilization under 30%.  Always pay off early if you can.  Rinse and repeat.
6.  After 1 year has passed, approach local credit union and apply for unsecured business line of credit.
7. ?????
8. Profit?

My questions:

1. Am I missing anything?
2. I have a DBA that I've been operating for 3 years now, with tax returns to prove it. I have a business checking account, and a couple credit cards in the business name. 2 with amex, 1 with chase. Do these count? Can I apply for the unsecured business line of credit on this business, or does he need to an LLC, S-corp, C-corp?
3. I'm opening a brand new LLC this week for all of my rental projects. Can I piggy back off from my existing DBA and skip the waiting/seasoning period.

Any clarification would be amazing.  Thanks ahead of time guys.

[Mark Brooks]

I've worked for BOA and now a community bank. With BOA (or any of the trillion $ asset bank types), you either fit in the prescribed box or you don't. Score off by 5 points? Denied. LTV just a shade out of whack? Denied. BOA banks something like 150 million people, so they can afford to do that. Community banks are much more flexible, while still being prudent and conservative. I know that's somewhat ambiguous, but that's the best way I can describe it.