Has anyone used a shelf company and succeeded in business, especially in the U.S.?

Question

Most recommendations come from Australia or the UK. I have not found any financial advisors or business coach's that recommend buying a shelf company. There is a company claiming to help raise money for a FILM, through a shelf company, www.60dayfilmfinancing.com

The CONS against doing this that I've read, D&B reads through the merger and you don't keep the credit line, you could inherit a bad credit history, you could be part of multiple owners of the same co. - just of the negatives I've read. If anyone could please give some feedback it will be well appreciated. Cheers!

Answer 1

This sounds like a horrible idea. Any lender that is not a crook is going to look hard enough at you and your corporation to determine your creditworthiness. So if you aren't dealing with shady lenders there is no advantage and if you are then that is its own problem.

If you can't convince someone to give you a personal loan, I don't see why you could convince them to issue a loan to an entity you control which has no assets and limits you liability for debt.

The site you reference talks about unsecured credit, but nobody offers such a thing at anything resembling reasonable terms. You'd be just as well off putting the film on your credit card.

If you really have a vision, you're going to have to do this the old fashioned way: Scrimp and save, and passionately convince people with your ideas.