Do you know that buying an aged corporation can benefit your business easily? A shelf corporation is normally formed, not used, and ready for purchase by a new owner.
This is because an aged corporation is already established hence, it will save you some good amount of time that you would have used in the duly processes.
It offers a high level of convenience, credibility, and asset protection. However, before deciding to buy an aged corporation, check the records to ascertain the vendor hadn’t defaulted in any way before you acquire it.
To acquire a great shelf company you need to evaluate the various vendors to know who can fulfill your needs.
What to consider before acquiring an aged corporation
Before settling for a certain corporation, ask as many questions as you can to be certain of what you are getting into, get clear records, get guarantees in paper form that the aged corporation is completely clean, and organize all the paperwork.
A great aged shelf company should not have any financial history to ensure there are no underlying debts.
Some of the benefits of acquiring an aged corporation are:
1) Convenience
Acquiring an aged corporation brings about a lot of convenience. This mainly occurs when you don’t want to create a new entity. If you want to form a corporation from scratch it may take a good amount of time, hence, getting an aged one can help save you time.
The purchasing process is smooth and won’t take too much time. This makes approaching investors, government institutions, and agencies much easier.
2) Trust building
A well-aged corporation will have a great reputation and breeds more credibility in the outside world. This enhances the company’s ability to position itself to bid on contracts and even get leasing agreements.
The longer a corporation has been in existence, the better stand it has on the market. If you have had a company for a couple of years, it is way wiser to acquire a corporation that has been in existence for a similar duration. The corporation and company age aligning can put you in a higher position.
3) Business credit
The older the business the more credibility. Once you complete the compliance items, open your profile; this will help in going up the business ladder.
Acquiring an aged corporation with great records will help you get a great credit program to help you up the ladder. Even when you approach a lender, it will be easier to get their favor because of the existence period. The more assets you have for your business make it better.
Having a shelf corporation that is several years older is an added advantage. This is essential when you want corporate funding because of your great credit score.
4) Attractiveness to potential investors
It helps to increase your business attractiveness to potential investors and access to government contract bidding.
This creates a way for more investment capital and creates banking relationships. Hence, making your financial base good.
Also, be cautious not to buy a shelf corporation that has done business in the past to prevent you from getting previous burdens.
Certain agencies normally require a business to have been in existence for a certain period to provide any kind of tender.
Hence, this can work to your advantage. Even when approaching investors, they will feel more confident with you, because of the existence period.
5) More productivity
Some companies prefer doing business with an older company rather than a new one. This provides more longevity and operating history.
It becomes easier to acquire and obtain credit cards and leases. The older the incorporation date is, the more advantageous it is for you.
It can help ensure your business grows because of the various channels it can use to prosper.
Final thoughts
If you are planning to purchase an aged corporation, you can get many vendors online who you can contact directly for information and guidance.
However, be careful with how you do it, to help to know the right vendor for you. Remember, a well-aged corporation should have no trade lines, bank account, or corporate credit.
This is because it shouldn’t have any financial history for easy embracing. One with financial history may have pre-existing debt issues that may affect your business.
Hence, investing in an aged corporation that has been in existence for a while will help put you a step ahead.
Image courtesy: British Academy
