Credit Unions and Shelf Corporations complement each other, and you can use credit unions for shelf corporation funding. Although before we jump into understanding how these two benefit each other, let us understand what are credit unions and shelf corporations first.
What are credit unions?
Credit Unions are non-profit financial institutions that provide services that a bank would offer but still work differently than traditional banks. Their main motive is not to make a profit, unlike banks but to serve their members instead. Unlike traditional banks, credit unions are not run by shareholders that aim to maximize profits but instead return all their profits to their members in the form of more promising interest rates. Credit unions are much better than banks since they usually offer lower fees, personalized approaches to their clients, and higher savings rates. They also offer lower interest rates on loans. Account fees are considerably lower. This means there is no monthly service fee, lower minimum deposit to open accounts, free mobile banking, no minimum balance requirements, free online banking, and free e-statements. They are also easier to join and friendlier service. Credit unions consider their customers more than profit magnets.
What are shelf corporations?
Shelf corporations or aged corporations are companies that have been previously been established and put on the shelf to age. Shelf companies are dormant in nature, they have never conducted business since the date of establishment and hold no liabilities or debts. Since a shelf company has a history of longevity it increases the credibility of a company. As a business owner, you might know that the age of a company can affect or determine how you acquire loans and supplies.
Investors, suppliers, and customers prefer to invest or trust in a company that has been in the industry for some significant amount of time. The older your company is, the more faith suppliers, investors, and customers have in you since your company appears to be experienced and professional. You will find it easier to approach banks for loans or acquire business credit. Moreover, obtaining a business visa or work permit won’t be a hassle for you with an aged corporation. Competing in a specific industry and standing out from the rest is not possible with a brand-new company. In order to win your customer’s confidence in your company, it is necessary to create an appearance of corporate longevity.
Credit unions for shelf corporation funding
Once you have bought your aged corporation and it is all set for funding, it is advised that you apply to all the credit unions where your business is based for lines of credit and unsecured corporate credit cards.
The bottom line is, credit unions are better than traditional banks because of their non-profit initiatives. They prioritize their members more than aiming to maximize profit. It is advised that you buy a shelf corporation than a brand new company. Shelf corporations and credit unions benefit each other and are known as the two best pals