A Stunning Claim? You Made A Big Financing Mistake By Not Considering An ABL Lender!

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How dare us. Are we actually saying you, the Canadian business owner of financial manager don’t know how to run your business? Not really! Our point is that you in fact may have missed one of the most solid strategies out there today when it comes to business loan financing. Simply speaking, if you haven't looked at an ABL lender for asset based finance business lines of credit, you just may be missing the boat when it comes to an asset based loan.

 

BUSINESS REFINANCING IS A CHALLENGE

 

We do think we can relate to the Canadian business owner though because we're the first to acknowledge that refinancing your business, in good times or bad is both a challenge and concern to the owner/manager. ABL lending is the solution that just might work!

 

U.S. AND CANADA SIMILAR GROWTH IN ABL LENDING

 

Whether you like it or not we often, in Canada, get our business trends from the U.S.  (We’re not necessarily thanking them for the 2008 worldwide implosion), and in the states, asset based lending drives a huge amount of business financing. So, we should at least look into that, right?

 

WHAT IS THE  ABL LENDING ASSET BASED LOAN  SOLUTION AND WILL IT SOLVE CASH / WORKING CAPITAL CHALLENGES

 

When we talk to clients about asset-based financing their business initial conversations focus on two areas - first of all, a definition of the subject, and secondly where ABL fits in the cash flow solution.

 

In terms of our subject matter let’s get straight on a definition in asset based loans. We're talking about what some call a  ' comprehensive ' ABL lending loan , that is to say, it is in fact one business financing revolving line of credit facility that lumps together accounts receivable , inventory/finished goods/work in progress,  fixed assets, and even real estate if your firm has that, into the mix. Real estate in ABL typically means owner-occupied and owned premises.

 

And where then does ABL lending  fit? That’s the good news, as it fits... everywhere. This type of business financing facility can function as a business line of credit, it can be used to purchase another firm via the other firm's asset base, and it is more often than not used to replace or pay out a bank facility when that isn’t working for the client.  Bottom line, a true business catch-all!

WHO USES ABL?

So who uses asst based lending ABL? That’s probably one of the biggest surprises to clients when we put forth an asset based  ABL lender solution. Why? Because what form of finance can be used from start-up to the world's largest corporations. Certainly, none that we are aware of.  Although not widely publicized, many of the world’s largest and most successful corporations utilize ABL as an alternative to traditional bank financing. It classic balance sheet finance 101 with a focus on .. Assets!

 

Cost is always a discussion point when you consider a new form of daily financing for your firm. Here you need some clarity, because asset based business credit lines are cheaper than bank facilities, and they are also more expensive.  What drives your final cost is your overall creditworthiness, the size of the facility, the level of accounts receivable and inventories, and who you are dealing with. That's the quick answer to ' whets my rate '?

 

So what do you need to really consider when it comes to assessing a new business line of credit asset based solution?

 

KEY AREAS REQUIRING FOCUS IN YOUR ABL LENDING DECISION VIA ASSET BASED LENDERS

 

Some key areas to focus on / explore and discuss are:

 

What are the direct advantages of ABL working capital solutions?  (More borrowing power)

 

Can both private and public companies use it? (Answer - yes!)

 

How does the facility operate on a daily basis different from a bank line re: access to cash flow  - (it doesn't)

 

Does ABL deliver more cash to my business (yes, 99.999999% of the time?)

CONCLUSION

Speak to a trusted, credible and experienced Canadian business financing advisor on why this solution for daily financing of your company... works

 

7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com

Click Here For 7 PARK AVENUE FINANCIAL website !



7 Park Avenue Financial provides value-added financing consultation for small and medium-sized businesses in the areas of cash flow, working capital, and debt financing.



Business financing for Canadian firms, specializing in working capital, cash flow, asset based financing, Equipment Leasing, franchise finance and Cdn. Tax Credit Finance. Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations.

' 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. He is an experienced

business financing consultant

.

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 financing 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.


Click here for the business finance track record of 7 Park Avenue Financial



Stan Prokop

 

 
7 Park Avenue Financial/Copyright/2020

ABL Lender Business Financing Asset Based

An Asset Based Lending Loan Via An ABL Lender ? Things You’re Not Being Told!

A Conspiracy Theory In Business Credit Lines? !

OVERVIEW – Information on accessing the right debt capital and asset based financing choices in Canada via an ABL lender. The Asset based lending loan is a solid alternative to a bank credit line




An Asset Based Lending Loan. When it comes to a business line of credit via an ABL lender we sometimes think that there is a bit of a conspiracy theory when it comes to information the Canadian business owner or manager has when it comes to Canadian business financing.

Why is that ?Well we certainly didn’t read it in the National Enquirer, so we I suppose its just a notional feeling in talking to clients that they have been misinformed when it comes to alternatives in a commercial business credit facility . Let's explain.

In the U.S., and certainly less in Canada! asset based credit lines are an absolute cornerstone in commercial borrowing. They in effect replace Canadian chartered bank lines of credit and are essentially ' non bank' in nature. There's an interesting sidebar to our information we're sharing in that the banks are actually in the ABL business also, but it's a bit of stealth marketing we feel given that none of our clients certainly seem to know that! But we digress..!

These commercial credit facilities are conceptually the same as the bank credit lines, except that they often collateralize more assets, and, here's the kicker, they provide more working capital, cash flow and liquidity pretty well 99.999% of the time. In fact we personally with clients have never NOT seen the ABL loan provide the same or less business cash flow, it's always been more! Intrigued?

The cornerstone of the ABL credit is the flexibility it provides, as you are simply, under one umbrella, monetizing all your business assets. We were thinking about this the other day and perhaps another way to explain it is that this type of commercial borrowing is similar to the home equity credit line, where under one security agreement you can draw your funds for any purpose.

The assets that are monetized under an Asset Based credit are:

Receivables
Inventory
Equipment
Real Estate - if applicable

The equipment must of course be unencumbered, and the real estate, if it’s applicable in your firm’s situation uses the equity that's left in your real estate, i.e. the un-mortgaged amount.

Some readers might think that all of this might sound a little complex, but the reality is that the ABL line operates 100% in the same manner as a bank line of credit, i.e. the same security agreements, and the same daily method of usage as you draw down on the facility as you sell and collect for your products and services. That differences again - more liquidity, as A/R is typically margined at 90%, inventory in the 25-75% range, plus the added bonus of throwing your fixed assets into the borrowing mix.

We've talked a lot about similarities in the facility. but are there some differences? Two major differences are pricing and reporting. Briefly speaking pricing can vary. While it can be the same or less expensive thank bank financing in most cases it’s more expensive, but the benefit is the additional cash flow it brings into your company. And secondly there is more monthly reporting on the assets that fall under the credit facility. In our experience that additional reporting often makes your company a much sharper run machine as you understand your business a lot better. Trust us!

So, back to that conspiracy theory! We're still not sure we can prove it, so can we just leave it that it’s up to you to investigate an asset based lending loan via an ABL lender. Discover the difference in commercial borrowing in a manner you just may have never been told about. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor.

7 PARK AVENUE FINANCIAL
CANADIAN ASSET BASED LENDING EXPERTISE


Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 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 re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/abl-lender-asset-based-lending-loan.html




7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653
Email = sprokop@7parkavenuefinancial.com


















Stan Prokop

A Stunning Claim? You Made A Big Financing Mistake By Not Considering An ABL Lender! Asset Based Business Finance Works

Asset Based Financing In Canada


OVERVIEW – Information on asset based business financing in Canada . Should you consider an ABL lender for your operating line of credit needs ?



How dare us. Are we actually saying you, the Canadian business owner of financial manager don’t know how to run your business? Not really! Our point is that you in fact may have missed one of the most solid strategies out there today when it comes to business financing. Simply speaking, if you haven't look at an ABL lender for asset based finance business lines of credit, you just may be missing the boat.

We do think we can relate to the Canadian business owner though, because we're the first to acknowledge that refinancing your business, in good times or bad is both a challenge and concern to the owner/manager.

Whether you like it or not we often, in Canada, get our business trends from the U.S. (We’re not necessarily thanking them for the 2008 world wide implosion), and in the states asset based lending drives a huge amount of business financing. So, we should at least look into that, right?

When we talk to clients about asset based financing their business initial conversations focus on two areas - first of all a definition of the subject, and secondly where ABL fits.

In terms of our subject matter let’s get straight on definition. We're talking about what some call a ' comprehensive ' ABL, that is to say it is in fact one business financing revolving line of credit facility that lumps together receivables, inventory, fixed assets, and even real estate if your firm has got that, into the mix.

And where then does ABL fit? That’s the good news, as it fits... everywhere. This type of business financing facility can function as a business line of credit, it can be used to purchase another firm via the other firms asset base, and it is more often than not used to replace or pay out a bank facility when that isn’t working for the client . Bottom line, a true business catch all!

So who uses ABL? That’s probably one of the biggest surprises to clients when we put forth an ABL lender solution. Why? Because what form of finance can be used from start up to worlds largest corporation. Certainly none that we are aware of. Although not widely publicized, many of the world’s largest and most successful corporations utilize ABL as an alternative to traditional bank financing.

Cost is always a discussion point when you consider a new form of daily financing for your firm. Here you need some clarity, because asset based business credit lines are cheaper than bank facilities, and they are also more expensive. What drives your final cost is your over all credit worthiness, the size of the facility, and who you are dealing with. That's the quick answer to ' whets my rate '?

So what do you need to really consider when it comes to assessing a new business line of credit solution?

Some key areas to focus on / explore and discuss are:

What are the direct advantages of ABL? (More borrowing power)

Can both private and public companies use it? (Answer - yes!)

How does the facility operate on a daily basis different from a bank line - (it doesnt)

Does ABL deliver more cash to my business (yes, 99.999999% of the time?)


Speak to a trusted, credible and experienced Canadian business financing advisor on why this solution for daily financing of your company... works!

7 PARK AVENUE FINANCIAL
CANADIAN ABL ASSET BASED FINANCING EXPERTISE





Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 9 years - has completed in excess of 80 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 re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/abl_lender_business_financing_asset_based.html