A lot of small businesses come to us for information on shelf companies as well as to buy them, and they can make the right choice from our massive inventory of aged and shelf corporations. We find that most of them do not have the required information and are misinformed about the concept of shelf corporations. So, there is a big chance that they might get defrauded if they don’t get enough information to make the correct decision. As a small business owner looking for solutions for many issues, especially that of funding, you would have come across the term ‘shelf corporation’ or ‘aged corporation’. Some people that offer shelf corporations for sale, promise these as an antidote for almost anything that your business requires, but this is certainly not the case. Buying a shelf corporation can be very useful in specific cases, and we will elaborate on these in this blog post, which is incidentally our first, in our journey to educate potential buyers about this often-misunderstood industry. In this post, we will also tell you about the common mistakes that buyers make while buying a shelf company, and what you can do to avoid the same issues that will inevitably crop up if your due diligence is not up to the mark.
So, let’s get into the details of when a shelf corporation can give your business the boost that you desire. If your business has a not-so-good credit history, or is in loss, or is in an industry that is considered high-risk by bankers, it makes sense for you to buy a shelf corporation for credit purposes. Or you can plan for taxation by showing a loss for your present business and still get funding for the shelf company. People looking for fast credit for their businesses need to study the prospect of shelf corporations in depth. While no one can guarantee approval of your credit request, a shelf corporation definitely gives your chances a big boost. And if you take the advice of professionals like the team at ShelfCorpGiant, then you’re almost certain to get through, provided your credentials are not too bad, as that is also checked by financial institutions. And there are ways through which you can get beyond that handicap as well because there are smart ways beyond every obstacle, and professionals are available for your service if you know how to find them. For more details, please visit our Funding Roadmap and 80 Paydex Program pages.
Shelf corporations are very useful when you need to start operations instantly. You can skip the paperwork of starting a new company and start the business as soon as the company is in your name. Buying a shelf corporation is of great help in sectors where you need to bid for contracts, and there is a specific requirement of your company being in business for a particular period of time, before you can put in a bid. There are some reputed lenders and vendors that will only explore relationships with businesses of a particular vintage. It is a very important point to remember that if your company advertises that is x years old, it does not necessarily mean that all shareholders are also that old. Think of the impact of such an advertisement on your credibility in the minds of your potential customers! In a situation such as this, aged corporations are particularly useful. If you are looking to enter into the contract business, then buying an aged corporation should be on top of your to-do list. Some businesses avoid the option of Initial Public Offers by buying aged corporations listed on the stock market. Then they sell the shares by projecting the company as a corporation with an existence of more than a few years. Thus, you can make up a lot of ground when you decide to buy a shelf corp! If you’re a foreign business looking to expand into the US, then you should be looking at shelf corporations as a method to gain a foothold into this highly lucrative market. You can also buy aged corporations to give your business a veneer of local origin, age, and respectability. These are common factors that play a big role when local and small businesses choose their partners.
Now let us come to some of the common mistakes made by buyers, and how you can avoid the pitfalls of this extremely competitive, yet lightly regulated world of shelf corporations. There are many sellers out there in the market who will promise you the moon, but you better be beware! They might be selling shelf corps with so-called established credit lines, or with a tax record or personal guarantors. Then there are people that will sell you shelf corporations with bad credit history, and there are some frauds who will sell you aged corporations that they don’t even own! Never buy aged corps that have a previous history, as you inherit all the faults that the company might have, and you will not have the blank slate that every new business ideally should have. These mistakes can prove to be very expensive for you and a sure-shot recipe for jail time. The personal guarantor service also is a complete scam. This path is generally chosen by people with doubtful credit profiles, and they fall prey to people who offer them a shelf corporation with a different personal guarantor. Such a guarantor may not exist at all! Or he might be totally unaware of his use as a guarantor in a loan for your business. When he finds out, he will definitely complain about this to the authorities. That means you are in trouble for sure, while the sellers will escape, as they would have executed this scam many times. You should only buy shelf corps from a trusted source such as ShelfCorpGiant, and then only are you assured of the fulfillment of your aims. A shelf corporation, by definition, does not have an established business or credit line. It is a corporation that you can buy right off the shelf, as the name signifies.
Thus, we’re hopeful that this post helped you discover a bit about shelf corporations and we’d love to speak with you and help you in your journey as an entrepreneur!