Aged Shelf Corporation: How Old is Old Enough?

 


Depends on What You are Looking For

A Shelf Corporation’s value is in its age. But how old is old enough? When shopping for a perfectly seasoned age corporation, what is the ideal age to choose? There is no specific answer to this question since the answer purely depends on what you are looking for as an individual. A fact is that a company qualifies as an aged corporation when it has spent significant time on the shelf. The aging process is what differentiates newly registered companies from an aged shelf corporation. It could be a couple of weeks, months, or years.

The motivation behind purchasing an aged company informs the age of the shelf corporation one should buy. Here is an illustration; say, in the past 12 years, you have strived to create the best doughnuts business in your area. The entity has done great over the years, and you decided to franchise it, but you don’t have the money for that scale of expansion. So you opt to incorporate the business to be able to apply for corporate financing. This plan's problem is that your business of 12 years will be perceived as a new corporation seeking funding.

An age that corresponds to the actual age of your business

Lenders will see a huge financial risk in lending your “new” business, which may lead to having your loan proposal declined despite the several years you have been in the business. However, by purchasing a 12-year-old aged shelf corporation, you get to present a company of 12 years before prospective lenders. In the shelf corporation, lenders will see longevity, experience, and credibility. You’ll also have a corporate history to back your purported 12 years of existence. It is easy for a 12-year-old company to secure funding, as opposed to a newly incorporated company, regardless of the several years it operated as a sole proprietorship.

Take another look at an entrepreneur who has everything it takes to deliver on a certain contract that requires bids from companies that have been in existence for at least two years. This entrepreneur needs a shelf company sitting on the shelf for at least two years to be eligible to bid on such exclusive contracts. ShelfCorpGiant.com has inventory spanning several years for you to choose from depending on your specific needs.

 

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