OVERVIEW – Information on business lines of credit in Canada. The lesser known alternative ‘ ABL ‘ solution is the asset lending fix for working capital needs.
Business lines of credit are one of the most solid tools to help companies grow revenues and hopefully…profits. Asset lending , known as ‘ ABL is the credit line that may in fact give you ‘ full time’ assistance to cover your working capital and cash flow needs. Let’s dig in.
The necessity for ongoing cash requirements has business owners always looking ahead to how their business can remain ‘ liquid’. They are looking for that cushion of help when they really need it. Companies seeking SME Commercial Finance understand very quickly that the bias of banks seems to lean towards larger corporations – while they toil to source financial resources to meet growth needs.
As we have said in the past, thousands of firms in Canada find themselves ‘ underbanked’. That situation forces them to look at alternatives to traditional Canadian bank financing.
In some case clients we meet are in fact being asked to, shall we say, ‘ exit ‘ their bank relationship. At the other end of the spectrum the company is growing so fast traditional financing is unable to meet the needs. In both these cases Asset Based lending offers the solution, albeit almost always at a higher cost and terms.
Those companies wishing to return to prosperity though must consider all options, and the ABL credit line, typically from a non bank commercial finance company is almost always the way out. Naturally some planning is required along the way, including hopefully cash flow and sales projections.
In the majority of cases, ( but not all ) Asset line of credit lenders are looking at ‘ tougher/more difficult’ transactions Here they are focusing on the true collateral in the business – inventory, receivables, fixed assets, and of course sales prospects. In some cases business owners are looking to dramatically increase the ‘ personal guarantee’ aspect of their current financing arrangements.
In almost all cases asset based lines of credit offer ‘ flexibility ‘. Owners and mgrs utilizing the asset based credit line are focusing on growing the company and ‘ righting the ship ‘ from a financial perspective. In some cases these credit facilities can easily finance a merger or acquisition. The real competitiveness in the ABL market today allows companies to choose from a number of firms offering this facility.
If you’re looking for a real world focus on business financing intelligence around financing solutions such as ABL business lines of credit 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 you finance needs. who can assist you with you 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 :
7 PARK AVENUE FINANCIAL = CANADIAN BUSINESS LINES OF CREDIT & ASSET LENDING EXPERTISE
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Office = 905 829 2653
‘ 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