Millions of Dollars Through Shelf-corporations
This question has always been on our client's minds – can I really raise more money through Shelf-Corporations?
The internet offers a lot of propaganda to suggest that buying shelf-corporations will make you an instant millionaire. Some sites, and information found, even hints that when you buy a shelf-corp you can immediately use it to raise money just because of the age of the company.
While it is true that a shelf-corp is beneficial due to its longevity, do not be fooled by the commotion that is built around it. Shelf-corporations are a tool which only particular craftsmen can use. Without a proper method of use, the money spent on a shelf-corporation is unjustifiable. Needless to say that a 5-10 year shelf-corp out of any state won't “raise money instantly” or “immediately make you more favorable in the eyes of the money lenders”, as some suggest.
Here at IUG we ask you to be careful before considering this option. It is always recommended to build your business credit from scratch, or from an existing company. Lenders see through the smoked mirrors and the distortion created – sure you can squeeze by a few gains on smaller loans, but how long can it really last until someone asks you…..why did you buy an existing shelf-corp?
“One step at a time is good walking” – Chinese Proverb
First Step - Establish business credit for a corporation you run
Second Step – Open new commercial credit line account each month
Third Step – Use new accounts and monitor their reporting
Fourth Step – Repeat steps 2 and 3 until you have six accounts reporting to DNB Profile
About the Author:
Over the course of the last 5 years as an entrepreneur I have successfully launched, managed, and sold off several businesses. Each organization started has added some value to my understanding of the business world today. My philosophy has been that 9 things out of 10 that I try will fail, but that golden one is always worth the battle. In my experience that has proven to be the case and my successful businesses still operate today under the management of those whom I have sold off to. The latest project is Initial Underwriting Group, a corporation comprised of two concepts: 1) business credit building and 2) business loan underwriting.
Article Source: ArticlesBase.com - Millions of Dollars Through Shelf-corporations