OVERVIEW – Information on ABL lending in Canada and how asset based lenders via specialized business lines of credit financing solve a myriad of Canadian commercial financing challenges
Business financing in Canada often has owners/financial mgrs searching for the ‘ Silver Bullet’. That’s where asset based lenders and ABL lending in general come in. Those in search of that business silver bullet are looking for something that ‘ cuts complexity’ and provides an immediate solution. We’re examining exactly how and why asset based finance firms can provide you with the finance Silver Bullet you’re looking for. Let’s dig in.
It’s no secret that most top experts today maintain that ABL lenders emerge as the true alternative to traditional bank financing. While we might think of asset finance as ‘ debt ‘ that is definitely not always the case – as they also monetize the left hand side of your balance sheet – you business assets. A true ABL deal provides a revolving line of credit that accelerates your business liquidity.
Many business folks aren’t aware of asset based lenders only because they are, relatively speaking, new on the scene. They are typically commercial finance companies that, unlike the banks, are unregulated as it relates to commercial financing. These firms are a combo of Canadian firms, both public and private, as well as branches of larger U.S. firms who have chose to finance in Canada. Their focus on financing = flexibility.
That flexibility means higher loan to value margins, resulting in more cash flow and liquidity for your business. ABL lending does that because if places a greater focus on real world values as long as you are regularly able to report changes in your business assets – i.e. aged a/r, a/p, etc
Again, we’re circling back to flexibility. It is rare that any industry is totally ‘ out of favor ‘ with an asset based lender. Why? Because based on their internal expertise and their ability to work with your firm in any stage of your existence (start up, high growth, turnaround, recapitalization, etc) almost every Canadian firm is eligible for an asset based line of credit facility. The greatest flexibility, if we had to name one, is that the facility grows as your firm grows – that certainly is not the case when it comes to more traditional forms of financing, or term debt.
Will asset based lenders always be able to provide the solution you need for funding and liquidity. The answer is a resounding ‘ YES ‘ if you follow the following guidelines we emphasize with clients:
Ensure you are looking for the right type of financing when it comes to short term, intermediate and long term solutions – 100% always use of a revolving credit line might suggest the need for term loans or new equity
1.Focus on financing that helps you generate sales and profit growth
2.Ensure you understand the cost and requirements of asset based lending
Financing isn’t the only solution to every business challenge but if you want to learn more about the new ‘ SILVER BULLET ‘ in Canadian business financing consider speaking to a trusted, credible and experienced Canadian business financing advisor who will help you determine the right facility for your company.
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 = 905 302 4171
Office = 905 829 2653
Email = email@example.com
‘ Canadian Business Financing with the intelligent use of experience ‘
ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.
Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.
7 Park Avenue Financial
Canadian Business Financing