The Secret Flexibility Of Asset Based Lending

OVERVIEW – Information on asset based lending in Canada. Rarely do business loans such as ABL credit lines provide the financial flexibility you need to run and grow your business cash flow and working capital needs

Asset based lending in Canada offers some of the most flexible financing that many companies need in the current challenging corporate finance environment. When it comes to business loans that makes sense ‘ ABL ‘(short for asset based lending’) clearly delivers. Let’s dig in.

There are not too many firms that aren’t focused on growing revenues or simply trying to ‘ hang in’ in today’s competitive environment. Much cash can be consumed in acquiring new assets or strengthening the overall equity base of your firm – that’s where ABL comes in.

What distinguishes many companies today from their competition is their willingness to check out new sources of financing previous not considered. Although asset based lending may be considered one of the new ‘ alternate financing sources’ in Canada the reality is that it’s been around for years. Oh and by the way, it’s been utilized by some of the most successful and well known corporation, not just smaller firms in the SME marketplace.

While Canadian chartered banks get most of the ‘ mind share ‘ when it comes to business financing competition the reality is that not all firms can satisfy the credit quality required to obtain low cost / flexible finance solutions offered by our banks.

Traditional cash flow challenges revolve around firms that are growing their revenues and being unable to find the ‘ current asset ‘ financing that comes with the requirement to fund additional sales, inventories and receivables (let alone equipment/technology acquisition needs).

Business owners and financial mgrs are often pleasantly surprised at the flexibility of asset based business credit lines. Why? Simply because they combine your A/R, INVENTORIES, and EQUIPMENT into one borrowing facility that fluctuates with your sales growth. As sales grow you can borrow more, pretty well automatically.

That ability (flexibility) to include your fixed assets into your borrowing base of course removes the need to consider term loans and additional long term debt that most business owners/financial mgrs would prefer to avoid.

Your firm’s ability to leverage your assets into a business credit line will make sense to any commercial borrower who sees bank financing as a challenge. Seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with your firms’ business loan and financing 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
Suite 301
Oakville, Ontario
L6J 7J8

Office = 905 829 2653

‘ Canadian Business Financing with the intelligent use of experience ‘