Staples needs 3 years? – Shelf Corporations seem to be the only way to go.

Things have changed a lot in the business credit arena and keep changing. There has always debate on if Shelf Corporations are worth it and if you can start with a brand new corporation in order to build solid business credit, and the creditors are simply making it harder and harder to get financing. Shelf Corporations by themselves are not the answer. These corporations must be structured properly in order for them not to appear as actual shelf corporations.

So why all of a sudden I am saying that shelf corporations are necessary? Staples, Office Depot and Sears have recently changed their requirements. What was once starter accounts in business credit have become difficult to attain, as there revolving lines of credit now REQUIRE a 3 year old corporation, or you are required to provide a pg. Yes, check their online application. I had had success with applying to office depot by getting  their paper application and faxing it in without a pg, but when an account like staples is requiring a 3 year old corporation, it is time to take notice. There is still cash out there and now there are some of these lease cash back deals that are helping us by being creative with their struturing of their funding. Do not get me wrong, it is not impossible to get business credit without a shelf corporation, but it is increasingly difficult. Now is the time to go the shelf corporation route as there is more financing becoming available in 2011; but that business credit funding is going to be for those guys who are doing it correctly.

Marc