I just read the most disturbing thing...
CMA Community
Sponsored by Credit Management Association
-
Posted 1 year ago #
-
Thanks for posting this link Christine - that is certainly something to keep in mind. It's another reason why current trade refs and trade groups are important.
Posted 1 year ago # -
Interesting... hard to believe there are actually instructions on how to go about things like this. I guess no one needs to look in the mirror at themselves anymore.
Posted 1 year ago # -
This is appalling, and apparently de rigeur for any crook trying to open a business. Makes you wonder why this guy no longer does credit consulting, as in perhaps being forced out of it or sued.
BTW, we check prior ownership of corporations, and see whether it matches up with the credit application signatures. If it doesn't, then we start asking why the sudden interest in buying, when did the current ownership take over, and so forth.
Posted 1 year ago # -
I am not overly concerned based on what I read. Shelf corporations meaning corporations established but not activated have been around for a long, long time. The article suggests that corporations become more creditworthy after two years. The inference is that if a company has been in business for two years, they will qualify for a loan or credit. I would be willing to bet that almost no one grants credit exclusively on the basis of how long a company has been incorporated. Creditors want bank and trade references, review financial statements, and check credit reports. If an applicant is truly a shelf corporation, the things that we normally check for as part of the credit granting process are going to come back as blank.
Michael Dennis
Posted 1 year ago #
Reply
You must log in to post.
Copyright 2011 - Credit Management Association