Buying a Shelf Corporation as a Smart Business Strategy
At first, let’s review what a shelf corporation is about and think about a company or corporation that is already formed but has no activity which is what we call an Aged Corporation or Shelf Company. This company is ready to be sold or purchased to an individual or group who wish to start a company without passing through all the process of creating a new one. There are several factors that play into your creditworthiness and your company´s in an effort to have the chance to get financing for your startup and this is the reason why you have probably heard about buying a shelf corporation to open your credit floodgates. We want to share some insight with you about buying a shelf corporation as a smart business strategy and what are the key business credit advantages that will better help and prepare you in making more educated, professional and accurate decisions. Reasons for buying a Shelf Corporation There are certain things that make us consider these ready-made corporations a great option to start and the following are common reasons why people decide to buy a shelf corporation as part of a business strategy: · Obtain immediately credibility and age or “Time in business” required to qualify for financing and corporate credit. · You can instantly qualify to bid on Government contracts · Getting a solid credit profile is a huge benefit as an alternative to personal credit repair not only for your startup but to improve your credit history for future applications. · Obtain more credibility with partners, suppliers, lenders and prospective clients · Protect your assets from creditors · Get estate planning facilitated · You can get the facility of expanding your international business into the United States without red tape. The main advantage besides all mentioned above is the possibility to engage into credit, business or real state agreements as an established company without going through the long process of initiating a brand new company. Typically, potential creditors are less likely to lend or give their credit service to new or starting corporations but if you approach them as an established company, the more likely your business will have the opportunity to get easily approved for credit lines, leases, banking relationships and others. A smart business strategy Generally, during the initial process of building business credit, most creditors or lenders are used to extend credit to corporations or business that are at least two years in the industry and some cases are also required a personal guarantee if the business is less than a year old. Buying a Shelf corporation that is three or even more years old will immediately give you the number of credit opportunities available to you. Shelf corporations usually lead to a large increase in your borrowing power as well as improving your business credibility for customers and lenders. The age of a company is not a factor to determine ability but it gives greater credibility for clients and lenders and a big financial boost. Benefits of buying a Shelf Corporation Creating a brand new corporation can be a rough process, on the contrary, purchasing a shelf corporation allows you to save time and expense. Besides most states in the US require that your company perform in business for the specified minimum length of time. Your appearance and credibility will dramatically increase your corporate and credit history which is more attractive to potential investors, clients and lenders while having easier access to business lines of credit and better relationships with banks. Nowadays, there is not only the age of your corporation but many other requirements such as bank ratings, credit history and score and other factors to consider when requesting a line of credit or applying for bank financing and most shelf corporations have no business history. Consider some advice Shelf Corporations with no business activities are the right for you to focus on otherwise you will assume all past liabilities of that company you purchase that have done business in the past. Even any past lawsuits against the company will be carried by you. Before considering a Shelf corporation you should look into its history and ensure of its past business activities were limited or better nonexistent to avoid inherent or lingering liabilities. It is better for you if your shelf corporation diligence is taken by an expert corporation such as Wholesale Shelf Corporations that are premier suppliers of aged corporations that will help you find the best options and buying a company from them will facilitate the information, registration and marketing material to start your business in less time. Obtain unsecured financing using your Shelf Corporation Shelf Corporations will allow you to obtain easier and faster-unsecured financing because you can get funded through a reliable funding program only if you build and operate a real and legitimate business with a big purpose than just obtaining financing. After purchasing an Aged corporation you can go on our Corporate Credit Building and Funding program which is dedicated coaching program provided by Corporate Cash Credit to achieve your credit score and assist you in getting approved for unsecured business loans and lines of credits in less time. The main difference between a Shelf corporation and a Credit corporation are that Shelf Corporation are not taxed in the state of incorporation and the net income flows through to the shareholders and taxed at their personal income tax rate besides decreasing additional costs. Every business needs some cash to compete and grow and you should have a proper and appealing structure to lenders in order to have funding at hand. If you are a startup or expanding your business, trying to compete or exploring new options you should consider purchasing a shelf corporation as a smart strategy for your business because they are legal and ready companies that can be easily set up and operational which is very useful for anything you may need from bidding on contracts to protecting your assets or improving your credibility. Don’t hesitate on becoming more capable and creditworthy.