Business Credit – What happens when dedication and a love of the job aren’t enough to pay the bills?
Every company needs business credit. All companies reach a point where they need some extra working capital to pay bills, expand operations, improve marketing, or any number of other activities. Finding money can be a challenge, especially if traditional bank loans don’t work for your current situation.
Most bank loans rely on a set of criteria that can be extremely difficult for a small business owner to meet. If you have no collateral for a secured loan, finding the cash you need may seem almost impossible.
As long as your business has a steady flow of income each month, you may be able to qualify for unsecured business loans or unsecured business lines of credit. These cash sources can give you the working capital you need in much less time than a traditional bank loan. In many cases, same-day or next-day approval is possible.
These loans are attractive to small business owners who know they’ll have steady income in future months, but don’t have the financial history or collateral to qualify with a bank. In some cases, the interest rates on unsecured business loans can be higher than bank loans. More often, though, the rates are competitive.
When starting a new business or growing an existing one, you might need to apply for Business Loans, corporate credit cards and or lines of credit from lenders. Lenders will not consider approval of loan applications unless the corporation start date is more than three years and in many cases more than five years. A shelf company can help you resolve these issues. You may be able to get your application approved and gain from certain benefits as higher credit limits and lower interests.
Shelf Companies, also known as an aged corporation is a company that is already formed, but not in use and is ready to be purchased. There are many reasons for buying shelf corps and there are certain things to check before purchase.
Important Benefits Credibility and Business History:
You get a company with an established Business Credit and clean history. With a history you are more likely to be selected as a business partner. Due to the track record you will have more credibility with lenders and suppliers. Creditworthiness: – Most lenders will not consider credit applications from businesses less than 3 – 5 years old. Save Time: – When you buy a shelf company, you skip the time consuming process of registering a new business.
You can be up and running in 1 – 4 business days instead of weeks and start to establish business credit.
Contracts: Clients, suppliers, lenders, investors, and the government will require your business have a certain age. Normally 2 to 5 years before doing business with your company. You could miss out on many great opportunities. Business Image: – Business image improves with the age of your company. Clients trust a business that has been around for a number of years. Build Business Credit