Shelf Company to Build Corporate Credit
A REALISTIC LOOK AT USING A SHELF COMPANY TO BUILD CORPORATE CREDIT AND OBTAIN FINANCING FOR SMALL BUSINESS
This is a basic step-by-step plan on how to build corporate credit with an aged shelf company that’s at least three years old.
The aged shelf company. An aged shelf company can be a corporation or LLC.
What age is required of the shelf company to build corporate credit and obtain financing?
An aged shelf company, at least three years of age, is best. Any shelf company that’s at least three years of age will do the job. A shelf company that’s at least three years of age is enough. A shelf company that’s six years old will not attract more financing than a shelf company that’s three years old. As such, there’s no need to acquire a shelf company that’s more than three years old if the seller will charge more.
Do I need a shelf company with an Employed Identification Number(EIN)?
No. A shelf company with an EIN is a liability. The EIN is the tax ID number used to identify the company for tax purposes. A shelf company with an EIN may owe unseen taxes, and may be subject to audit due to improperly filed tax returns. You’re better off with a shelf company with no EIN. The EIN is free from the IRS.
Do I need an EIN that's aged?
Am I better off with an aged shelf corporation or an aged shelf LLC?
May I change the name of the shelf company after I buy it?
How much corporate credit am I able to obtain with an aged shelf company?
We haven’t seen anyone obtain more than $100,000 in corporate credit. Our competitors claim you’re able to get much more; but this is unrealistic. We cap the potential at $100,000. The Small Business Administration offers up to two microloan programs for small businesses, up to $25,000 each. In addition, there are credit cards and vendors that extend credit for equipment leasing, and supplies.
It all starts with small lines of credit with HomeDepot, Lowes, Staples, OfficeMax and your suppliers. Obtain those small lines of credit and pay them off early. Once your business demonstrates a competency in building a positive credit profile by paying off obligations early, then you’re able to apply for business loans in a few months.
How do I get a DUNS number and obtain a Paydex score?
Must I pay for a DUNS number?
No. A DUNS number is assigned to your business automatically when you apply for a line of credit.