Accredited Business Consolidators Corp. (ABS Corp.) announced April 23 that it will create a vehicle and equipment rental company in Central America.
ABS Corp. directed its attorneys to form a Nicaraguan, Costa Rican, and Panamanian corporation known as Grupo Accredited RAC S.A. Concurrently, a corporation in Pennsylvania will be formed to hold the shares of the foreign enterprises.
ABS Corp. believes the Pennsylvania holding corporation will be completed in 10 days and the foreign corporations within four to six weeks. The first office will be in Managua.
"We have preliminary agreements in place with several hotels to offer affordable car rentals to their guests with no hidden charges," said Denis Soto, who will be named vice president of Accredited RAC.
ABS Corp. said car rental companies in Central America typically advertise low car rates while deceptively forcing clients to purchase insurance products that are not needed.
"Every car rental company in Central America charges their client $12 per day for something called additional liability insurance, while the rental company maintains the absolute minimum amount of insurance required by law and pays less than $100 per car in annual liability insurance costs," Soto explained. "We'll be upfront and honest, yet we'll provide a fair commission to travel agents and hotels."
The company plans to lease its initial fleet of 35 vehicles in Nicaragua. In addition, My Pleasure Ltd. will be providing funding to purchase diesel generators, trailers and other equipment that can be leased.