Can Asset Based Lending Solve Your Canadian business financing challenges?
OVERVIEW – Information on financing solutions offered by the asset based lender in Canada. ABL Credit for business finance needs is a solid alternative to many firms who can’t access all the bank credit they need to run or grow their business
Business finance in Canada always comes down to ‘ choices’ for both owners & financial managers. New, emerging, or middle market companies often rely on the ‘ asset based lender’ and ‘ ABL Credit ‘ for financing needs. What are these solutions and who exactly offers them? Let’s dig in.
As we’ve mentioned in the past it’s all about understanding the terms ‘ assets ‘ and ‘ collateral ‘. While the assets reside on the balance sheet in paper form and description it’s really the true value of collateral that drives asset based lending solutions. These financings come with rates that are higher because they compensate for a bit (or a lot) more risks that commercial lenders take who are not banks.
(SPOILER ALERT – Banks take on less risk)
There is a wide range of financial offers offered by ABL Credit. ABL is of course the acronym for Asset based lending. Some of the key offerings in this finance industry segment include:
A/R Financing (Commonly called factoring)
Business Credit Lines based on your assets of inventory, receivables and fixed assets
P O Financing
Sale Leasebacks / Equipment Financing
While these types of loans typically run from 250k on the small end to multi millions in size smaller deals under that lower threshold are available if you are working with the right firm. Your financials , sometimes , but not always, complimented with a business plan, executive summary and cash flow forecast will always be a good start in securing your financing.
Why do companies gravitate to the asset based lender? Often it’s to put a short term / intermediate term cash flow fix in place. It can be a short term bulge in your business, or fixing the problem of taking on large new contracts or business. In some cases asset loans are a great way to acquire a company or competitor.
What are the key features in the decision making process for asset lenders for either term or operating credit facilities? They include:
Overall cash flow situation
Current financing arrangements
The amount and type of debt you have on your books
The general risk level that comes with your company or industry
Is the ABL CREDIT solution your ‘ fix ‘ for business finance needs? It just might be – consider seeking out and speaking to a trusted, credible and experienced Canadian business financing advisor who can assist you in solving liquidity needs.
Stan Prokop – founder of 7 Park Avenue Financial –
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years – Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing. Info & Contact Details :
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Direct Line = 416 319 5769
Office = 905 829 2653
Email = firstname.lastname@example.org
‘ Canadian Business Financing with the intelligent use of experience ‘