ENHANCE YOUR BUSINESS PLAN
Established Corporate Credit.
SHELF COMPANIES WITH CORPORATE CREDIT
There are many providers selling shelf companies with developed corporate credit. CAUTION! Buyer Beware! Why should you worry about shelf companies with developed corporate credit?
1. Many of these shelf companies (with corporate credit) owe back taxes, contractual obligations, or other debt.
Since it takes months or years for financial obligations to hit the public record in the form of liens or court claims, a company may be headed for legal and tax trouble unknown to third parties. The seller of the shelf companies may be brokering them, or reselling companies that went out of business.
SOLUTION: Buy a clean shelf company and build the corporate credit yourself.
2. There is no real, legal and proper way to obtain a shelf company with corporate credit.
Banks withdraw the credit extended to a company within 90 days of the company being transferred to another party. The corporate credit that was extended to that company also took into account the principals of the company, which changed when the company was sold to you.
SOLUTION: Buy a clean shelf company and build the corporate credit yourself.
3. Many providers are committing fraud by extending false and artificial trade lines for companies.
This is the scam:
A provider called “Scamalot, Inc.” offers companies with existing tradelines. They form companies A, B, C, D, and E. Companies A-E file positive reports (but false) that they are doing business with a company called, “Roadrunner Beep Beep, Inc.” Over the next few months, positive credit reports are made. This builds up the credit profile of Roadrunner Beep Beep, Inc. But since the reports are false, the credit profile is fraudulent. Lenders perceive this false reporting as truthful information and they extend credit. When those loans aren’t paid, banks balk. Most of the time they don’t figure it out–but that’s changing. Banks are increasingly aware of the games people play with corporate credit.
After the FBI jails the mortgage brokers that created the current mess, we expect them to turn their attention to those fraudulent promoters of corporate credit. When that happens, many of our competitors will sink.
SOLUTION: Buy a clean shelf company and build the corporate credit yourself.
4. Corporate credit scammers don’t deliver on their promises. They claim to deliver a company with corporate credit, Paydex score of 80, EIN, bank account,etc.
Instead, they deliver a company with none of these attributes. Sometimes, they send nothing at all!
SOLUTION: Buy a clean shelf company and build the corporate credit yourself.
5. Corporate credit scammers promise that a $35,000 ten year old shelf company, with all the corporate credit bells and whistles, will result in hundreds of thousands of available credit. They also “guarantee” the results.
If they guarantee the results, why not place that money in escrow? When the credit is obtained, you would release the escrowed funds. But don’t do it! This is because it’s not going to work. You’ll lose the funds paid for the company.
SOLUTION: Buy a clean shelf company and build the corporate credit yourself.
