The only significant difference between a newly established company and a Shelf Corporation is age. Both companies are registered the same way except, one is kept on a metaphorical “shelf” to age. A longer operating history comes with certain benefits exclusive to old companies alone. One major benefit is the impression of longevity that inspires confidence and trust in clients, vendors, and lenders.
Here are the top 3 ways you can use an aged corporation;
1. Instantly Obtain Invaluable Time-in-Business
Aged companies come with an established history. Although most Shelf Companies do not have a record of corporate activity to show, they are old enough on paper as indicated by the formal registration documents. Records show that they were established long before they got sold off. As such, the new owner inherits invaluable time-in-business that they can use to grow the new business.
Buyers and lenders alike put a lot of trust in old companies. Naturally, longevity is associated with experience and creditworthiness. A solid time-in-business increases their chances of getting funded and even receiving supplies on credit. Of course, age is always backed by other equally critical financial indicators like the company’s Credit score or Paydex Score.
2. Used to access funding
Businesses that have a decent working history are likely to get their funding proposals approved as opposed to new companies. The same case applies to individual loans. Most banks consider older people between the ages of 35 and 50 to be financially stable and have the capacity to meet their loan payments.
Age does the same for businesses as well. Lenders are keen to check on the company’s operating history before deciding on whether to approve or decline the loan application. Other factors considered include the company’s debt repayment history, quality of the product or service offered, and the company’s general reputation, among others.
3. Aged Corporations can be used to obtain contracts limited only to old companies
Some governments give contracts to companies that have been operational for a certain period. Such restrictions lockout newly established companies even when they could have delivered. Purchasing an aged company can help you maneuver limits like these allowing you to bid alongside older companies. This is one of the major superpowers of an aged corporation. You don’t have to wait longer to trade in major leagues, get yourself an aged corporation, and level the playing field.
Comments