Financial history of your company works to your benefits.

Financial history - Empire sate building New YorkThe sole purpose of running a business is making money. But the hard truth about money is that money makes money. So what can you do if you have no previous experience with running a business or any financial history at all. The obvious answer is to buy a company that already has a financial history. Owning such a company can allow you to apply for loans in banks. Most banks look at the company itself, not the owners or management.

 

Financial history with personal assets

Another way to prove your financial standing is to show your own personal credit card history. This can be used to when the bank would calculate your financial rating. You can become a subsidiary payee for a loan that you would take on for your company. This means that the bank is granting a loan to your company but you are the one that is responsible for paying it to the back side of the company. This might seem a little bit ridiculous but it is the end effect that counts.

EU grants and financial history

Financial history is quite important in EU. A lot of the economy is based on grants and subsidies paid by the central entities in the EU. This is a very formalized process and usually includes a lot of paperwork. For this special cases having a solid financial history allows you to prove your eligibility to an office responsible for granting the money for your project. It might seem ridiculous to you but it is a very formalized process.

Financial groups

As for building your financial history without running a business, you should consider building a financial group that might transfer money from one entity to another which would make it look sound in your books. Creative bookkeeping if not fraudulent is a very tedious task but it pays off in the long term. Getting advice on that from a tax consultant would be very helpful.

 

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