When is the right time to buy an aged corporation? Let’s find out.
Shelf corporations or aged corporations are off-the-shelf companies that are kept on the shelf to age and increase the credibility of the business. If you are thinking of buying a shelf corporation but don’t know what’s the right time to invest in one, then we have got you covered.
This article will help you determine when is the right time to buy an aged corporation for your business.
- When you need to form a company immediately and do not have time to go through all the formalities.
One of the most common reasons business owners purchase a shelf company is to save time. When starting a business corporation, there are a lot of time-consuming formalities and duties that need to be taken care of like documentation, paperwork, and licensing. Unlike a traditional company, a shelf company comes with all the duties already taken care of. Purchasing a shelf corporation will make your experience stress-free and hassle-free and you do not need to worry about wasting your time. Building a company from scratch is a tiresome process and by investing in a shelf company, you can skip this step and focus on growing your company instead.
- You want to build trust with your lenders, suppliers, and clients.
As a business owner, you might already know that lenders, suppliers, and clients are more likely to trust an aged corporation than a newly established company. If you are a brand new company, then your clients may not show the same confidence and trust in you that they might show to a company that has a history of being established. Moreover, they might not trust you or have faith in your company because your company may not showcase the experience and professionalism that they are looking for. Shelf companies have a history of being established, they will make you look like you have knowledge in the industry and have experience in the market.
- You want to acquire easy credit
Banks and lenders may not consider a newly established company since they do not have the confidence of getting returns on their investment. Moreover, banks believe that investments made with older corporations are safer and more reliable when compared to a brand-new company. You are also more likely to attain government tenders with shelf corporations by your side. It is not surprising that the age of the company plays a major role in corporate banking relationships and business contracts. Government agencies, manufacturers, and distributors require a company to have been in the market for a certain amount of time. You are also more likely to be noticed by large companies for collaborations.
To conclude, we hope this article has given you more clarity on the right time to buy a shelf corporation. Combining your business with an aged corporation is an excellent idea to get your business off the ground and get started on growing your business. Although while purchasing a shelf company, make sure that it is clean and does not come with any debts or liabilities.