Buying Shelf Company to get Cash Line Of Credit.

[Quickinvestment]

Hi,

 

I have been a member of this forum for years now. But couldnt remember my login.

 

Now that Im back interested in Shelf Corps, I have a question.

 

I was wondering are the companys that are selling Shelf corps for about 3k legit. Can they really qualify to get a cash line of credit for about 50k with no pg.

 

 

 

*My credit isnt bad in the event If I would need a pg its just really light*

and also I would be looking to buy a small business with the loc. If it makes a difference.

 

Thanks in advance

[BRBiz]

I'm sure they are legit but your not going to get a LOC with no PG on just biz credit uless that corp has very high trades showing in the tens or hundreds of thousands, a long business history and oh ya and fincancials to show income. There are places that sell corps like that but they will cost $10,000 plus and still may not be able to get loans. When banks see a ownership change it makes them cautious and look into the loan a little more.

 

So bottom line dont bother

[Quickinvestment]

Thanks for the quick reply.

 

That makes since. So basically these people are just sucking up dreamers.

[MainSt.]

Obtaining shelf corps are great ways to obtain corporate credit unlike the negative things one hears about them, especially on this board. As long as all the i's and t's are taking care of, a shelf corp can definately be beneficial. Think about it. People buy and sell companies everyday in this country is which the ownership has to change hands. The problem comes when people who have never obtained a shelf corp give their "opinion" that its a bad idea. Remember, people are afraid of what they dont understand. Now I will say that banks have caught on to alot of activity pertaining to business credit and shelf corps which is why alot of the banks now want a paydex for at least 6 months before they extend credit (Citi). And in this day in time, I dont know of any bank that is going to extend a LOC without a pg. Most banks now require a pg for secured LOC's (CD secured) let alone unsecured. Good luck!

[alpha12]

Obtaining shelf corps are great ways to obtain corporate credit unlike the negative things one hears about them, especially on this board. As long as all the i's and t's are taking care of, a shelf corp can definately be beneficial. Think about it. People buy and sell companies everyday in this country is which the ownership has to change hands. The problem comes when people who have never obtained a shelf corp give their "opinion" that its a bad idea. Remember, people are afraid of what they dont understand. Now I will say that banks have caught on to alot of activity pertaining to business credit and shelf corps which is why alot of the banks now want a paydex for at least 6 months before they extend credit (Citi). And in this day in time, I dont know of any bank that is going to extend a LOC without a pg. Most banks now require a pg for secured LOC's (CD secured) let alone unsecured. Good luck!

 

 

I concur....

[Quickinvestment]

Understood. Well my next question is. How strict are they when it comes to the pg. Does the pg have to be top tier credit? For say something small 50k cloc

 

 

Obtaining shelf corps are great ways to obtain corporate credit unlike the negative things one hears about them, especially on this board. As long as all the i's and t's are taking care of, a shelf corp can definately be beneficial. Think about it. People buy and sell companies everyday in this country is which the ownership has to change hands. The problem comes when people who have never obtained a shelf corp give their "opinion" that its a bad idea. Remember, people are afraid of what they dont understand. Now I will say that banks have caught on to alot of activity pertaining to business credit and shelf corps which is why alot of the banks now want a paydex for at least 6 months before they extend credit (Citi). And in this day in time, I dont know of any bank that is going to extend a LOC without a pg. Most banks now require a pg for secured LOC's (CD secured) let alone unsecured. Good luck!

[milesb]

Here is the whole pg loc deal in a nutshell. Banks have tightened up so new businesses will most likely have to pg. Unless your file is strong. The only circumstance that you may not have to pg is if your business can show large profit magins. The other thing many get mixed up is putting your social security # down. ALL banking institutions and credit card companies require this per the patriot act to stop terriorism and money laundring. My suggestion is credit unions and small local banks. They have all the money because they did not have to be bailed out. Plus obama gave them incentives to lend to small business. So if you can figure out a way to get your corporation aged and build a file in a short period of time then their is a chance you may not have to pg. Just remember putting your social is not always a pg. It could be a soft pull to verify you are who you say you are. Just remember credit unions and small banks have plenty of money to lend right now. Check around and research. Please post any info you find.

 

Understood. Well my next question is. How strict are they when it comes to the pg. Does the pg have to be top tier credit? For say something small 50k cloc

 

 

Obtaining shelf corps are great ways to obtain corporate credit unlike the negative things one hears about them, especially on this board. As long as all the i's and t's are taking care of, a shelf corp can definately be beneficial. Think about it. People buy and sell companies everyday in this country is which the ownership has to change hands. The problem comes when people who have never obtained a shelf corp give their "opinion" that its a bad idea. Remember, people are afraid of what they dont understand. Now I will say that banks have caught on to alot of activity pertaining to business credit and shelf corps which is why alot of the banks now want a paydex for at least 6 months before they extend credit (Citi). And in this day in time, I dont know of any bank that is going to extend a LOC without a pg. Most banks now require a pg for secured LOC's (CD secured) let alone unsecured. Good luck!