Looking For A Non Bank Business Financing Solution ?

OVERVIEW – Information on non bank lenders in Canada . Why is Asset Based Financing The Fastest Growing Business Finance Solution ?

Asset based financing via non bank lenders is one of the most popular and fast growing business finance options in Canada. But why are these new paradigm lenders so popular with increased presence and visibility in all aspects of raising capital and cash flow today? We think we know exactly why! Let’s dig in!

One challenge though is that this type of finance term, i.e. ‘ ABL ‘ ( asset based lending ) is a bit of a catch all term when it is first heard by many business owners and financial managers . There are in fact a very distinct number of solutions within the term ‘ asset based finance;

These solutions include:

Asset based operating lines of credit

Factoring / AR finance

Inventory Loans

Sale Leasebacks

Bridge loans

SR&ED Tax Credit loans

Acquisition / merger financing

We think you can see the basics thought – it’s borrowing power for cash flow and working capital secured by some or all of your business assets. Unlike Canadian chartered banks these firms are more often than not commercial finance companies who operate for a profit, and, unlike our banks, are not regulated by the government. That type of regulation often limits borrowing!!

So why consider this type of solution? The most common reason is your firm’s inability to get some of all of the credit from those traditional capital sources. In some cases your firm might be in dire straits, and is in the process of exiting the bank. (At their request!)

It is very safe to say that non bank lenders take more risk, provide more capital, and come with a higher cost of borrowing. For that reason they are no focused so much on loan covenants, balance sheet ratios, etc. If your firm is still a start up or early stage company you’re still often a solid candidate for financing. Hint: Sales revenues help!

How does one access alternative finance solutions. That sometime is a challenge in and of itself, as the players are small, large, U.S. owned. Canadian owned, and occasionally geographically focused. All have different rates, structures, solutions, and programs. In many cases enlisting the help of a Canadian business financing advisor makes total sense to save time and hone in on the right solution.

When you do in fact focus in on the solution that makes sense for your firm benefits will often include flexibility and quicker access to capital. In a handful of scenarios it’s not uncommon for an alternative financier to also work within your current bank facility, although that’s not the norm.

The bottom line? There is a whole new ‘ ball game ‘ when it comes to commercial business financing via non bank lenders. If you’re looking for lines of credit, cash flow and working capital solutions, or very specialized finance needs seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with asset based financing business finance 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

Direct Line = 905 302 4171

Office = 905 829 2653

= greg@7parkavenuefinancial.com

‘ Canadian Business Financing with the intelligent use of experience ‘

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.

Stan Prokop
7 Park Avenue Financial
Canadian Business Financing