7 Reasons Why Aged Companies Are Useful
Where a Company Needs to have Been Around for Three Years to Bid for a Contract
In many cases to bid for contracts a Company has to have been around for at least three years. If you want to be in a position to bid for those contracts an aged Company might fit the bill, especially if it has filed accounts.
If You Need to Transfer Assets ‘With Effect’ From an Earlier Date
Sometimes it will have been agreed to transfer assets out of one Company and into another with effect from an earlier date. This could be for tax planning or accounting reasons. In this scenario an aged Company would be essential. It couldn’t have received the assets before it existed.
If You Want to Establish Credibility in the Marketplace
The longer a Company has been around the more credibility it will have in the market. Particularly if you’re selling online and your potential customers don’t know you personally. A Company that’s been established for 5 years or 10 years is always going to be more credible than a brand new Company.
If You Need a Company With an Established Credit Rating
Sometimes your Company will need an established credit rating. This could be to sign up for new premises, get a business credit card or buy new vehicles. A Company with an established credit rating is perfect for those situations. It can help you get your business started and reduce the amount of cash you have to find personally or from other investors.
Avoid Personal Guarantees
Every new business owner has been there. You go to the bank for a loan or you have to sign a new lease and you’re asked for a personal guarantee. Personal guarantees expose your personal assets like your house or your car to seizure if your business fails. With an aged Company you’re much less likely to be asked to sign personal guarantees.
You Need to be Up and Running Quickly
The opportunity is here right now. There is not much time to form a new Company, open a bank account, get a VAT number and all the other things you need to do before you start trading. It’s possible to get an aged Company with a bank account and VAT number already set up. You’re ready to go instantly.
A Sole Trader Converting to a Limited Company
Maybe you’ve traded under your own name for years and now you need the protection of a limited Company. You don’t want it to sound new, after all you’ve been in business for years. An aged Company can more accurately reflect how long you’ve been in business and the trust you deserve from new customers.