In the past I have covered some business credit definitions, but as time passes, things change, and there are a new more things we will
need to know in the business credit arena, and I try to cover as much of it as possible.
1.Leaseback - According to Wikipedia, a leaseback is short for sale-and-leaseback, and is a financial transaction, where one sells an asset and leases it back for the long-term; therefore, one continues to be able to use the asset but no longer owns it. The transaction is generally done for fixed assets, notably real estate and planes, and the purposes are varied, including financing, accounting, and taxing. A full definition and explanation of how it works in Business Credit can be found here.
2. Foreign Filing – A foreign filing is a form(in many states) that you file with the secretary of state to allow a corporation from a different or foreign state, to do business in that state. An Business Credit Example – Let’s say that you purchased a Shelf Corporation incorporated in FL, but you are located in NY and you want to do business in the state of NY. You will have to file a foreign filing with the Secretary of State in New York for your Flordia business to do business in New. This has multiple advantages. Two of these advantages are, that this will save you money by not having to pay for a virtual office on a monthly basis in the foreign state, as well as it will make your corporation look bigger as it has more than one location.
3. SOS – Stands for Secretary of State. I know this is not a “new” definition for most of us, but a client asked me what SOS stands for and I noticed that I did not cover it in my definitions on this website, but it is in the Business Credit Bible.
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Marc Augustine
