It is no secret that Shelf Corporations will help you get easy loan approvals. Shelf Corporations are companies that are already established but are kept on the shelf to age. They are dormant and have no credit history howsoever. The age of the company adds credibility, and hence the history of longevity offered by a shelf coporation will make your company look more trustworthy and reliable in front of lenders.
Here are 3 types of business loans that you can acquire with the help of a Shelf Corporation.
- Working capital loan
These are short-term business loans that aim to bring extra cash into the business. Entrepreneurs usually apply for these loans when they want to grow and expand their business, day-to-day advertising, inventory purchases, and payroll. You can also use a working capital loan to pay down your debt or to cover any emergency business costs. To qualify for a working capital loan, you need to have a good credit history. Having a shelf corporation may help you build your credit score. A working capital loan is beneficial since it finances the everyday operation of your business and also comes with low-interest rates.
- Business credit card
A business credit card is similar to a personal credit card that provides a revolving credit limit accessible through a checking account. There will be a maximum limit on your credit card, and once spent, you will have to repay it in order to withdraw more money. If you are unsure about how much money your business needs, then this is the right option for you. You will only incur charges on the amount of money you withdraw. Compared to a term loan where you are required to pay interest on the entire loan, a business credit card seems like a much better option for businesses. Moreover, a Shelf Corporation also increases for easy business credit card approval.
- Small business administration loans (SBA)
If you are running a small business then this one is for you. Small business loans are perfect for borrowers who are looking for a low-cost government-backed loan. Although if you are looking for quick funding then you might face some trouble due to SBA’s long administration process. It will take at least two months to get the loan approved and receive the loan, although owning a shelf corporation can speed up the approval process. SBA loans are a good option if you don’t require instant funding and want to benefit from lower interest rates and fees.
There are a lot of options when it comes to business loans. It can also be overwhelming to choose or decide which one is the most suitable for your business. To choose the right business loan, you need to evaluate your business plans and think about your business needs. Luckily, for you, owning a shelf corporation will make things easier. Shelf corporations will increase the chances of loan approval and will also help you build a good credit score.