Some Things Get Better with Age
You’re feeling good,
you’ve rolled out the business plan, you’re partners are in with you, and
everybody’s jazzed because it’s time to incorporate and move into the next
phase of owning a business. But wait a minute, your accountant advises you that
based on your company’s current credit rating you’re not going to be able to
secure the type of loan you’re going to need to get things up and running.
“Why not?” you ask.
“Well, in order to get
the kind of loan you’re looking to secure from the bank, they want to make sure
that your company has more of a history of good credit.”
“But we’re brand new.
What do we do?”
The answer is: don’t
panic.
One option that is worth
investigating could be investing in the purchase of a “Shelf Corporation”. Also
known as an “Aged Corporation”, a shelf corporation is a corporation that has
been around for a while, but just hasn’t been doing very much of anything.
How it Works – The Delicate Art of Credit Chemistry
To say that a shelf
corporation has been doing nothing would be misleading. Like a fine wine it has
spent time in the cellar patiently waiting for its moment to be corked. Most
shelf corporations were designed and setup with the sole purpose of being
launched at a later date and what transpires between bottling and the moment it
is poured can be profound when it comes to a balance sheet.
First, by purchasing a
shelf corporation, the relationship your company establishes with the bank is like
one between good old friends. Right away they can see that your company has
been around for a while and that you have a good credit score which makes them
more trusting of your ability to pay your loan.
Second, much of what was
required to start a company has already been taken care of. All of the basic
ingredients have been blended together and it’s simply a matter of customizing
them to your needs. A lot of the red tape that can potentially delay a start up
is already taken care of.

Finally, you can even
merge your existing company with your shelf company as a means to facilitate
building business credit.
Things to Consider
Remember, a lot of the
heavy lifting has already been done for you and there’s a cost that comes with
that. Like a good scotch, the price goes up the longer it’s aged. Sure the cost
of the shelf company may be higher, but it also has a longer established
history and that can go a long way.
Also keep in mind that
before it becomes yours, a shelf company is literally a product on a shelf.
There are lots to choose from so it is still important to do your research and
find one that’s right for you. Not all shelf companies are created equal
either. It’s important to get detailed information about the shelf company
before you buy one.
Many companies that
offer standard business registration and incorporation services also offer
shelf corporations as well, and can help guide you through the process of
determining what’s right for you.
For more information on buying a shelf company, please visit CorporationCentre.ca.
I agree that you one must do research to find the right company and one that offers an aged corporation that’s just right. I recently browsed through the inventory at wholesaleshelfcorporations.com and they have a huge selection and variety of all types of shelf corporations from which to choose. My representative was very friendly and helpful and provided me with detailed background information that was helpful in me making the decision that was best for my immediate and long-term business needs.
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