Shelf Companies offers a sense of longevity
Assuming you are a lender, what will inform your decision to either approve or decline a funding proposal? Do you just trust your guts and dish out loans to everyone asking, or do you conduct due diligence on the businesses to ascertain their likelihood to pay? Well, for peer-to-peer, traditional banks, or direct lenders, all they need is conclusive proof that a business has what it takes to repay its loan without fail. This involves reviewing several parameters that highlight the company’s capacity to make its loan payments on time. Several of these parameters are met over time, which means that newly incorporated companies get disqualified first.
Time-in-business is one a crucial indicator that lenders consider while reviewing a lending proposal. They trust businesses that have had a long-standing existence as they pose less financial risk. Clearly, new companies have the disadvantage of age. However, by purchasing an old shelf company, your new business gets the same privilege as its older counterparts. An aged corporation makes your business appear credible, but that is as far as the magic of longevity can stretch.
Why you need a paydex score of 80
Shelf corporations are formed and left on the shelf for years only to be brought active when it is purchased. Naturally, they don’t have any corporate history to show since they have not been trading during the seasoning period. This is where the magic of credit building programs come in. ShelfCorpGiant.com a renowned dealer of aged companies prides an efficient credit building program aimed at giving your newly purchased shelf company a paydex score of 80. This is a rigorous process that seeks to establish a company’s perfect credit history to be used in determining its credit score.
Most lenders can work with a minimum paydex score of 80, thus the program's name- 80 paydex score program. It takes them between 45 and 60 days to achieve this score, after which you may now apply for funding. A paydex score of 80 means that the business has been paying its debts on time, meaning they are likely to continue in the same desirable pattern. Shelf corporations are great, however, without a paydex score of at least 80, they are as good as newly registered companies.
Comments