Securing business credit is a vital step for companies looking to grow, expand, and operate smoothly. A well-established credit history not only provides financial stability but also opens doors to various opportunities for business development. One unconventional yet effective strategy that some entrepreneurs and business owners employ is utilizing aged shelf corporations to secure business credit. Let’s dive into what aged shelf corporations are, how they can be used to establish credit, and the steps involved in this process.

Understanding Aged Shelf Corporations

An aged shelf corporation, also known as an aged company or seasoned corporation, is a business entity that has been registered with the state but has remained dormant or inactive. These corporations are typically acquired from a specialized provider – such as Wilshire Financial Group – that registers and maintains these entities until they are ready for sale. The primary purpose of aged shelf corporations is to provide buyers with a corporate entity that has an established registration date, which can have potential advantages when seeking business credit.

Advantages of Aged Shelf Corporations

  1. Time Advantage: One of the main benefits of aged shelf corporations is the time advantage they offer. Building a credit history for a new business takes time, often years. An aged corporation can have a registration history that dates back several years, giving the appearance of an established business entity, which can be appealing to creditors and lenders.
  2. Credibility: Aged corporations can project credibility and stability to lenders. Having a corporation that has been registered for several years signals to potential creditors that your business is not a fly-by-night operation and is committed to its long-term goals.
  3. Access to Higher Credit Limits: Lenders are more likely to extend higher credit limits to established businesses with a proven track record. Aged shelf corporations can help position your business as a trustworthy borrower, potentially increasing the amount of credit you can secure.
  4. Faster Approval: Some lenders may be more inclined to approve credit applications from aged corporations because they see them as lower risk due to their longer history. This can lead to faster credit approval processes, which is crucial for businesses that require quick access to funds.
  5. Negotiating Power: When seeking business credit, having an aged corporation can provide you with stronger negotiating power. You may be in a better position to secure favorable terms and conditions, such as lower interest rates or longer repayment periods.

Using Aged Shelf Corporations to Secure Business Credit

  1. Research and Selection: Start by researching reputable providers that offer aged shelf corporations. Look for providers with a history of reliability and transparency. Once you’ve identified potential providers, review the available aged corporations and select one that aligns with your business goals.
    • Wilshire Financial Group Clients Get Funded – 100% Approvals! Celebrating 16+ Years Perfect Funding Record!
    • All of our Aged Corporations come with a Money Back Guaranteed to Meet or Exceed All Bank Underwriting Guidelines!
  2. Legal and Financial Review: Before finalizing the purchase of an aged shelf corporation, consult with legal and financial experts to ensure the legitimacy of the transaction and that the corporation is free from any legal or financial liabilities.
  3. Updating Information: Once you’ve acquired the aged shelf corporation, update the company’s information to reflect your business details. This includes changing the company’s name, address, and any other necessary information.
  4. Establish a Business Presence: Establish a legitimate business presence for the aged corporation. This involves creating a business website, setting up social media profiles, and ensuring that the company’s information is consistent across all platforms.
  5. Open a Business Bank Account: Open a business bank account in the name of the aged corporation. This is a crucial step in building a separate financial identity for your business.
  6. Apply for Trade Lines: Trade lines are credit accounts that appear on your business credit report. Applying for and responsibly managing trade lines can help you build a positive credit history for the aged corporation. Start with smaller credit accounts and gradually work your way up to larger ones.
  7. Monitor and Maintain: Regularly monitor the credit activity of the aged corporation. Stay on top of payments, keep credit utilization low, and maintain a strong credit profile.
  8. Apply for Business Credit: With a well-established credit history, you can start applying for business credit from various lenders and financial institutions. Use the aged corporation’s credit history as leverage to secure favorable credit terms.
  9. Diversify Credit Types: Aim to diversify the types of credit you have, such as revolving credit, installment loans, and trade lines. This can showcase your business’s ability to manage different types of credit responsibly.
  10. Build Relationships: As you utilize the aged corporation to secure business credit, focus on building strong relationships with lenders and creditors. Timely payments and responsible credit management can help solidify your business’s reputation as a reliable borrower.

While using aged shelf corporations to secure business credit is an unconventional approach, it can offer various advantages for entrepreneurs looking to establish credit quickly and access favorable credit terms. However, it’s important to approach this strategy with caution and ensure that all legal and financial aspects are thoroughly reviewed. By working with Wilshire Financial Group, you can feel at ease knowing that you have an experienced partner that will help you leverage an aged corporation to unlock new opportunities growth and success for your business.

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