3 Brilliant Ways To Use Shelf Corporations

What Is The Value Of Your Time?

The cliché aphorism, ‘Time is Money’ has managed to stay relevant for centuries because it is true. A business that makes money by the hour distinctively understands what it feels like to lose an entire market day, let alone weeks. This is why even with the relatively faster process of company registration, many entrepreneurs prefer purchasing ready-made companies instead of waiting in line to be served. Purchasing a shelf corporation is the best decision you can ever make if you are looking to save time and inherit invaluable time-in-business. It is the most convenient way you can ever think of getting into business as a new entity and escaping the bias against your peers.

Shelf corporations or aged companies are legally registered business entities created and left on the shelf to age. They do not engage in trading activities during the ageing period, and therefore, do not hold any assets or have liabilities by the time of sale. These magnificent investment vehicles assist entrepreneurs in skipping the time-consuming process of incorporating a business from scratch. As a company strives to cave a name for itself in the market, the first year of operations is oddly challenging. Customers are not yet convinced that you are the right guys for the job. Lenders, creditors, and suppliers, alike are scared of losing their money to a newbie that is barely learning the ropes. Limited funding opportunities and a small client base weigh down on a company and may lead to failure. So let’s take a look at three brilliant ways to use shelf corporations to avoid these challenges;

1. Improving Business Image

Your business inherits the age of the shelf corporation you just purchased. As we’ve already established, the disadvantage of age can make you incur incalculable costs in missed opportunities. For starters, customers do not yet have confidence in new businesses. The age of a shelf corporation will make your new business appear older than it is in reality. The aura of longevity enhances your company’s image big time as it will be perceived to have stood the test of time and is certainly better placed to deliver good results.

2. Obtaining Funding

Lenders in protecting their interests avoid dealing with businesses thought to pose a high financial risk. This includes new businesses that are just making entry into the market without prior dealings. As a result, new companies are often deprived of funding when they need it the most. However, since the disqualification is based on age, the appropriate remedy is to enter the market through an aged corporation that won’t face a lot of unwarranted scrutiny during the funding application review process. Vendors of shelf corporations like wholesaleshefcorporations.com have extensive corporate credit building programs that make your company credit ready to be eligible for funding.

3. Bidding on Government contracts

Some government contracts can only be awarded to companies that have been in operation for a certain minimum period. This restriction locks out new businesses from bidding on these lucrative tenders that could potentially make a new company turn in its first huge profits. You can either wait for your company to age naturally, or you purchase an aged shelf corporation and be eligible to bid on these contracts right away.