Do you want a chance to obtain financing for your new startup? Well, you might have heard about buying shelf corporations for such wants. It is also beneficial for your new ventures as it opens credit floodgates. Isn’t it amazing? Well, there are many factors other than the aging of the company like its creditworthiness or whatnot. The age of the business should not be considered the only key to credit.
In this article, we are going to share some insights with you about shelf corporations in Canada along with some advantages that will prepare you in making much better decisions.
What Is A Shelf Corporation?
A shelf corporation is also known as Aged Corporation. It is a type of corporation that is already formed but is not in use and is ready for purchase by its new owner. As many people buy these corporations there are many things to keep into consideration when trying to get your hand into one.
There are various shelf corporations with a bank account in Canada that are ready for purchase, but you might be thinking why should you buy these shelf corporations? Well if you are not an established company buying one will help you save a lot of time and expenses.
Shelf corporations let you engage in business, credit, and any real estate agreements as an established company. You will not have to wait for a long period to establish a brand new corporation. We already know that potential creditors and business resources don’t like to lend or extend the loan to new or start-up corporations. That is where shelf corporations play an important role. These corporations help you by letting you approach them as an already established corporation or company. This provides you the opportunity or access to banking relationships, credit lines, leases, and so on.
How Can A Shelf Corporation Benefit Your Business?
Buying a couple of years old shelf corporation can indeed increase the number of credit opportunities for you. Suppose if your existing corporation is less than 2 years old, you will get a limited amount of business credit from the banks. But if you plan to set up or start a new corporation then you can consider buying a shelf corporation.
Not only do shelf corporations increase the borrowing power of your business but also enhance the credibility when talking to lenders or the customers. If you are from Canada, then there are various advantages of buying a shelf company in Vancouver.
Saving the needless expense of money and time by forming a brand new corporation
- Investment capital and potential investors find it attractive
- Easy and fast access to banking relationships and business credits
- Have an appearance of corporate history with instant credibility
- Instant access to government contract bidding
Conclusion
If proper due diligence is taken, these shelf corporations can turn out to be the best option for your business. There are many aged shelf corporations with bank accounts in Canada that are available don’t forget to do your homework before purchasing them.
