| 06 December 2011
aged shelf corp funding – Do you want to learn more about “aged shelf corp funding”? If so the...aged shelf corp funding – Do you want to learn more about “aged shelf corp funding”? If so then this article below may be exactly what you have been searching for…
A shelf corp, shelf company, or shelf corp, is a company or corporation that has had no activity. It was created and left with no activity - metaphorically put on the "shelf" to "age". The company can then be sold to a person or group of persons who wish to start a company without going through all the procedures of creating a new one.
Start-up costs are the largest expense a business owner can face. To complicate the matter, many companies will not lease or extend credit to a business without at least 6 months of history. Shelf Corps provide a clean history that can assist in overcoming many obstacles encountered in establishing business credit with local suppliers. A shelf corp with at least six months of age is beneficial for many new businesses.
It is important to choose the age appropriate to your needs. For a building contractor or consulting company the number of years in existence is important to the clientele. If you have been in the construction industry for 15 years, for example, obtaining a 15-year-old corporation may make sense because it corresponds with your time in the business. In order to obtain some contracts, the typical business age requirement is two years. That may not be the only factor in obtaining a bidding agreement, but it may be one of the many check-the-box items, especially, as we mentioned, when your corporate age and business age match one another. Moreover, some report that for a business that wants to build corporate credit, the older the better.
Building the corporate foundation first is essential when securing vender trade accounts and unsecured larger lender loans. If your company is new, it is consider a new company and will take a couple of years to build the proper business history, trade lines and credit to meet most vender credit requirements. Assuming you added a corporate credit building program to your new business over the first couple of years then you are well a heard of the game and now the company is ready to start looking for additional financing to grow your business.
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