3 Ways To Reinvent Your Business With Shelf Corporations

 

A company’s ability to adjust its approach in response to a dynamic external environment is an invaluable skill necessary for survival, and shelf corporations might be exactly what your business needs to cope with these turbulent forces. Business owners have slowly discovered that lenders, suppliers, vendors, and even customers prefer doing business with older companies. Important business associates have an outright bias in favor of older companies probably because of the lower financial risk they pose. If your car breaks down in an unfamiliar neighborhood and you are presented with a mechanic that has been doing business in the block for the past 25 years, and another that just opened shop recently, who would you pick to examine your car engine? Obviously, the one that has been around longer, right? Age is associated with experience and subsequently delivery of desired results. 

Examining the above scenario, it is possible that the new mechanic might have been equally skilled, or even better compared to the older mechanic but the age of his garage disqualified him from being awarded the job. The same unwarranted bias stands for lenders, creditors, and other crucial associates your business needs to thrive. Lenders have a blanket assumption that new businesses pose high financial risks. Often this is true based on past statistics about the survival rates of new businesses. However, what lenders fail to consider is that with adequate financing, the fate of these new businesses could turn out differently. This is evidenced by the number of flourishing new companies that had access to sufficient funding. Let’s take a look at three ways a business can reinvent itself using a shelf corporation. 

1.  The advantage of Age

Unfortunately, lenders are quick to shut the door on small businesses, especially when they are new, without taking time to look into their potential and perhaps reconsider their position. What wholesaleshelfcorporations.com does, is equip these disadvantaged new businesses with nearly the same capacity as older companies, thus affording them equal lending opportunities. Wholesaleshelfcorporations.com is a trusted shelf corporation’s vendor in the United States with clients from across the world looking to spice up their entry into business using aged corporations. 

The company has a vast catalog of aged companies on its shelf ranging from newly registered companies to 10-year-old shelf companies. Aged corporations save you the time and effort it takes to incorporate a new company from scratch since you will be purchasing a ready-made company and hitting the market straight-up upon transfer of the company’s ownership. The beauty about aged companies like naturally older entities is that they face less scrutiny when they apply for funding, unlike new companies. If you have a remarkable product or service, it is better to approach lenders as an older company with organized management and marketing structures than a newbie. Age alone changes how lenders perceive your business as it indicates a company that has stood against all odds in the past with inadequate funding. 

 2.  Get Desirable Corporate Credit Score in Weeks

A newly purchased shelf corporation does not have everything it takes to impress creditors. In fact, lenders will be curious to find out what the company has been up to for the period it has been in operation. Shelf corporations are always inactive during the aging process, which means that they do not have a business history to show. However, if your vendor is wholesaleshelfcorporations.com, obtaining a credible business credit history should never worry you at all. This agency runs an effective corporate credit building program aimed at assisting your business establish a solid business history and subsequently the ideal corporate credit score.  

Through https://www.corporatecashcredit.com/, the agency does an in-depth analysis of your business to pinpoint what needs to be done to make your company credit-ready. The program seeks to find out, among other things whether your business’ website meets lender requirements, if your business contact information is accurately listed with 411, Google, Bing, Yahoo, and Yellow Pages. The analysis also touches on if your company has an active Duns Number and whether your personal credit score meets lender requirement. This extensive analysis takes up to 7 days, then the next step follows. 

If your business is cash-starved, the agency can guide you to getting funded before your company obtains an 80 paydex score. Turns out, you do not need an 80 paydex score to get unsecured corporate credit cards. This can be done in 21 days, and by the time 45 days lapses, your business would have obtained 80 paydex score allowing you to seek higher funding approvals. Twenty-one days after achieving your 80 paydex score, you may now apply for bigger corporate loans. 

Later on, they will assist you remove credit inquiries from the first round of funding as you prepare to go in the second round. This rigorous credit building program takes about 128 days to complete. An alternative to this process would be waiting two years to establish a credible business history before seeking funding. If you do not have a huge cash reserve to last the business two years, then you’ll most certainly experience serious problems along the way.

3.  Join the Big Boys’ League 

Did you know that there are certain lucrative business opportunities that new business cannot touch? Some government contracts have been reserved for companies that have been trading for a certain number of years. The age requirement eliminates new businesses from bidding on such contracts until they are old enough. Talk of missed opportunities! Your business will be in the cold for the said minimum number of years required to be eligible to bid on such contracts. 

Luckily, with the assist of a shelf corporation, your new business can bid on these contracts and win. What you do is make your intentions clear to your vendor that you are looking to bid on a contract that requires, among other things having been in operation for, say four years. Your vendor will then hook you up with a 4-year-old shelf company or an older company that will make you bid on the said contract instantly. 

And that is how you reinvent your business with shelf corporations.