Using an aged shelf corporation to build your line of credit



Creating a line of credit takes time, but using an aged shelf corporation will reduce the time taken to have an established business. The first thing you have to do is make sure your shelf company is more than two years old. If not, then you need to look for one that has a suitable age.

Do not change the entity name

In as much as you may be tempted to change the name of your shelf company, it is not advisable to do so. You can build credit using aged corporations for sale if you do not change the entity name. When you switch the business name, it will appear as if it is a new company. Thus, financial institutions will not lend you money.

Have the original articles

Retain the original articles of the shelf company that you purchase. It would be best if you could keep the agreements, articles, resolutions, by-laws, or release forms. These documents need to be in one place with your corporate records.

Become the company director

The other way you can grow your credit is by making yourself the director of the corporation. It is also a good idea to appoint yourself as an officer of the corporation. By giving yourself such a higher position in the company, it will be a lot easier to build your line of credit for your business.

Apply for the business licenses

You should also apply for business licenses and operating permits. When you apply for these documents, you should do it under the name of the aged company you have purchased. When buying a shelf company, make sure you go for one that has a certificate of non-trading. The document should confirm that the company is free of judgments, free of liens, and does not have liabilities.

Individuals acquire shelf business for different reasons. Some of those reasons are:

For obtaining bank loans, leases, corporate credit cards, and other credit facilities. With an aged company, you have a better chance of getting these facilities.

You require credibility. A business with the right company image is essential to any business owner. A company is more credible if it has been in existence longer. Some distributors only do business with a company that has been in operation for some time.

Benefits
  • Instant access to government contracts
  • Instant credibility
  • Attractive to investors
    After choosing the shelf company, you will have a history. However, it may not give you instant credibility. If you want to avail of credit facilities, the company must not have any lingering liabilities. You have to confirm this by looking at the corporation’s history. Check if the business has an open bank account EIN.
    Corporations get shelved for different reasons. The aged companies are in very high demand. The price of the companies fluctuates, depending on the number of years they have been in existence.