Do Shelf Corporations Guarantee My Business Instant Funding?

 


Shift in Motivation

 

Initially, the shelf corporations concept was meant to save busy individuals the time and effort it takes to fully incorporate a company. Before the internet, one would wait for months and pay hefty fees to have their businesses incorporated. Today it takes considerably less time to register a business, thanks to the digitization of most of the process. Despite the effort to make it less tedious to incorporate a company, it is still business as usual for aged corporations’ vendors like ShelfCorpGiant.com continues to receive as many clients as before, perhaps more. 

 

Turns out the motivation for purchasing a seasoned aged corporation shifted from just saving people time. Now entrepreneurs are intrigued by the possibility of inheriting valuable time-in-business immediately, an aspect associated with tons of financial privileges in the business cycles. The business community discovered that lenders and other creditors have a soft spot for older companies. Longevity paints a company as credible, thus attracting all the right associates, among them lenders. 

 

Lenders are only interested in one thing; your company’s capacity to pay the loan. One of the many parameters they look into while reviewing your funding proposal is time-in-business. Lenders would like to know if your business is perfectly established and that you will be there when they come to collect their money. Of course, there are other considerations, but this shows why older companies receive less scrutiny during the loan application review. Another thing that is taken very seriously is your history of the debt payment. Lenders don’t like experimenting because that poses the risk of losing everything if they are wrong in their review about your business. To establish your likelihood to repay the loan, they go through your credit history.

 

Increased Odds of Getting Funded

 

Shelf corporations try to meet these parameters to increase your chances of getting funded. By purchasing a 5-year-old shelf corporation, you jump the hurdle of age, which means you are no longer tagged as “high-risk.” Some dealers throw in a credit-building program to give your new business an ideal corporate credit to be considered for funding. All these attributes increase your chances of getting funded, but they do not guarantee funding. Lenders consider several parameters before approving a funding proposal. Shelf Corporations only raise your odds of getting funded. It is way better than going in with a newly registered company. 


Comments

Post a Comment

Popular posts from this blog

Things You Didn't Know About Aged Shelf Corporations.

Image
  In a business world where established longevity and convincing operating history inform the credibility of a business, purchasing an Aged Shelf Corporation  continues to be an easy option for many entrepreneurs. The value of rich business history can never be overstated especially when it directly affects the level of confidence potential associates such as clients, suppliers, and lenders place in a business.    Here are 4 things you probably didn’t know about aged shelf corporations;   They Are Very Legal    Historically, shelf corporations were created to be sold off to individuals that wanted to start a company without going through the effort of incorporating one. This remains one of the major reasons for purchasing aged corporations together with a host of other benefits that include obtaining an established business history, and perhaps a solid credit rating. Shelf corporations are created for legitimate purposes and even come with valid VAT registra
Read more

Are Aged Corporations Legal?

Image
  Having learned the invaluable benefits of entering the market through an aged corporation , you are probably questioning the legitimacy of the whole concept. The fact that you are having doubts about a shelf corporation's legality makes you the right person to purchase a shelf corporation. It means that you are planning to use it for legitimate purposes only and wouldn’t want to be associated with something that goes against corporate laws. You wouldn’t want to pick an investment vehicle that will turn out to be financial and legal nightmare in the long run.    What is considered Illegal?    To understand whether or not aged companies are illegal, first, let’s examine what makes anything illegal? From a basic Google search, something is illegal when official laws do not sanction it. Any entity that operates contrary to set authorizations is termed illegal. By the same definition, there is nothing illegal in the registration of an aged corporation. Neither does the law forbid
Read more

Can I Buy A Shelf Corporation With Existing Line Of Credit, Tax Returns, or Financials?

Image
  By definition, a shelf corporation is a duly registered company that is kept inactive "on the shelf" to age to be sold later to an individual or a group of people. “Naturally,” shelf corps do not have any assets or liabilities given that they do not engage in business activities during the aging period. Therefore, it is impractical that a shelf corporation would come with an existing line of credit, tax returns, and declared financials.    Regardless, you will still come across shady vendors online advertising aged corporations that come with cash lines of credit, tax returns, and financials. Such aged corporations come in hefty price tags and promises of instant guaranteed funding. First, we need to establish that there is no way a shelf company can magically come with these valuable credentials after several inactivity years. Second, not even the oldest aged corporation on the shelf can guarantee your business instant funding. Aged corporations can
Read more