Credit Blog | Graceful Financial Solutions

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Benefits of a Shelf Corporation

Why should you startup a business from scratch when you can save time and gain access to credit easier with a shelf corporation?

Starting up a business from scratch entails a lot of details, details, details! These details require a lot of time in terms of development and research, which in turn call for big expenses. A startup company, because of its very “young” age, has a limited operating history that makes access to credit and investment capital difficult and opportunities to bid on contracts slim.

Why then as a business owner should you opt for a startup when you can buy a shelf corporation that already has everything you need to immediately start operating?

Dun and Bradstreet has always been at the forefront in providing commercial information on businesses, thus, becoming one of the world’s most popular and trusted credit reporting agencies.

D&B’s primary job is to provide an in-depth and thorough evaluation of a company’s financial stability. It comprises necessary scoring, payment and financial information based on company size, real properties owned and financial net worth, allowing businesses to review a completely assessed credit profile that will help them arrive at a decision.

Dave Ramsey Credit Myth

Earl Carruthers of Graceful Financial Solutions on Dave Ramsey’s Credit Concepts

Dave Ramsey is a fellow brother in Christ and I adhere to his financial teachings over 90% of the time. I know I’m not in a position to judge a man’s heart but I believe Dave is sincere towards his mission to serve others and lead them to live a debt free life, however, I beg to disagree with Dave’s theory on the unimportance of a credit worthiness.

I cannot emphasize enough the value of having an above average credit score, most especially when applying for a mortgage, auto loan, working capital or even employment.

In a time when the whole world is experiencing a recession, it is important to maintain a good credit standing. The better your credit standing is, the higher the chance that you will be approved when applying for a loan since most lending and credit companies are tightening their lending guidelines.

Easier said than done! As not all of us maintain a good credit standing, in one way or another, you may have failed to comply with the your credit card agreement which results in hurting and damaging your credit standing. These damages may result in denial of a mortgage, car loans or even credit cards. So, we cannot blame the lender nor question their decisions as they are only trying to protect their own interest.

Are you presently drowning in debt? Every time a new bill arrives in the mail, every time the telephone rings and you fear it’s one of those creditors, it just feels like the universe is conspiring against you!

Being financially pressured is no joke. The stress that it brings further aggravates your already pinned-down situation. It’s time that you take a breather. Know and understand your debt relief options so you don’t stay in the pit hole forever.

Debt Settlement

There are Ways to Settle Your Debt.

If you’re thinking of filing for bankruptcy, hold off that thought for a moment while you read the rest of this article. Debt settlement is possible.

While you may believe that filing for bankruptcy is the only way to free yourself from unsecured debt such as credit cards, personal loans, business loans, negligence claims and repossession deficiencies, consider first these negative effects when you succumb to this last, depressing resort:

Just as you should not mix your personal life with your professional life, don’t let business credit get in the way of your personal credit.

Your business credit should be totally independent from your personal credit. Your personal credit is yours alone to keep. It should not reflect the expenses and debts incurred by your business as these will negatively affect your personal credit score.

Some entrepreneurs do not realize the importance of having separate credit for business. Having separate business credit protects you from losing your personal assets should your business suffer a setback.

Fixing your credit and getting your financial situation back on track is never an impossible goal. By adding aged tradelines to your current credit file, you will swiftly rebuild your credit score and effectively improve your credit history.

An aged tradeline is another term for a seasoned line of credit. A tradeline is considered to be aged or seasoned if it has been opened for at least the last two years, and active since the time of its opening.

Your credit or FICO score is highly dependent on the number, length of history and status of your aged tradelines.

Liability: A corporation exists as a separate legal entity from your personal life. Any debts or lawsuits are incurred by the company, not the owner. Any business with potential for lawsuits should consult with a lawyer and consider incorporation. Incorporating will offer an added layer of protection but it is still adviseable to obtain business liability insurance. The bad debts will often be the responsibility of the corporation. In the case of bank financing, more and more banks require business owners to sign a personal guarantee; making your personal assets collectible on a defaulted loan. Consider your options before signing.

DID YOU KNOW?

There's no such thing as an "overnight credit repair". That said no one works faster the GFS. On average, our clients start to see results in as little as 30 days.

Put your credit score on the fast track to recovery. Call Ryan Carruthers at GFS to get started.

DID YOU KNOW?

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