Establishing a winning funding strategy is crucial for the long-term success of any startup. This calls for the creation of an elaborate funding road map that allows you to stay organized and well equipped to tackle basic questions by investors or lenders and win their confidence while at it. It is easy to get off-track and contradict yourself when you don’t have a detailed road map to guide you through the whole process of securing external funding. Fortunately, there is no one-strategy-fits-all approach when it comes to choosing the best Funding Road Maps your entity should take.
However, by correctly answering the questions of “How big the startup should grow and how fast you want it to get there,” one can then decide on the most ideal strategy that compliments these goals. It is much easier to secure funding when it involves a shelf corporation with invaluable business history and probably a credible credit score obtained later after purchasing the aged company. In this piece, we shall discuss a common funding road map aimed at making your Shelf Corporation eligible for unsecured corporate loans and lines.
1. Understand What Can And Can’t Be Done With A Shelf Corporation
Purchasing a Shelf Corporation doesn’t necessarily guarantee you funding. Always understand the limits your aged company can go as far as securing credit is concerned.
2. Check Your Credit
Shelf companies don’t naturally come with remarkable credit scores to impress lenders. Ensure that your company has a good Paydex Score to increase your chances of getting funded.
3. Clean Negative Items
Negative entries on your credit report can limit your chances of impressing your potential investors. Pay off your overdue debts and negotiate with the collection agency or your creditors to delete the negative items on your report.
4. Improve your Credit strength
Stay current on all your bills to improve your credit strength
5. Get approved for unsecured corporate credit cards
Always pay off your corporate credit card debts on time or before schedule to build a sparkling history.
6. Get Approved For More Unsecured Corporate Credit Cards
And always keep them current to secure your slot at the low-risk group.
7. Operate The Business And Generate Revenues
This helps build a credible business or operating history.
8. File 1st Tax Returns and Show Profits
Filing your tax returns shows compliance, which is a good thing in the eyes of prospective investors and lenders.
9. Get Approved for Level 1 Unsecured Corporate Loans & Lines
Now, this is where real freedom comes. This level of credit means lenders perceive you as a low-risk borrower and, you can Max your limit to fund your operations.
10. File 2nd Tax Returns and Declare your Profits
11. Get Approved for Level 2 Unsecured Corporate Loans & Lines-
The real win!
12. Rinse and Repeat
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