Archive for the ‘shelf corp’ tag
Small Business Financing Update
I have made several posting on creative ways to obtain funding for your business. This is a quick update based on my own experience on this matter so far.
All of what I have said in the past in regards to buying an existing corporation with credit line is still true but whats important is that you have to be very careful in what you go after. Once something is non-traditional, anyone can offer this type of product but the issue is whether they are real or just trying something. Here are some very basic pointers to look at.
1. Ask for full disclosure on who they are and why their business would deliver the intended product. Who are the principals involved, any referrals available to validate their claims ( this one is tricky of course).
2. Full protection of your money. Even if a company is incorporated and has a bank account, it does not mean they will be legitimate. Let them agree to accept credit card or an escrow service. If they can’t afford to wait on escrow process then move on. sometimes some of these guys are arrogant and claim they are serious. Move on, as they should cater for your concerns not themselves.
3. Do not accept the arguement that if you were serious and have the money, you would not ask question. Note, its your money and you do not have any need for them to take it away without proving how its protected.
4. Make sure the contract is specific. Some could get you funding but that could just be lease equipment and not cash. Make sure it spelt out the minimum amount in cash credit and the latest dates for funding. Of course also make sure they agree to full refund if those conditions are not met. They cannot guarantee funding but they can guarantee the service are performed or refund your money. Always get a lawyer to look over the contract and if possible put in penalties for delays in the process. For example reduce the amount on the back-end etc.
There are also reliable ways to get you a high limit credit card on your personal profile without any checks. Same rules apply with these.
Its still a lucrative area to pursue and I have more information to share on the next step when you get funding. This step could blow your mind in terms of money you could access with this facility. Did I say leverage?