Our blog highlights Canadian Business Financing solutions via receivable finance , equipment finance, working capital financing, asset based lending, business acquisition financing,franchise finance, and tax credit monetization via SRED and Film Tax Credits. Our goal is to educate and assist Canadian businesses with their financing needs. You Are Looking For Canadian Business Financing! Welcome to 7 Park Avenue Financial Call Now ! - Direct Line - 416 319 5769
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In 2004 I founded 7 PARK AVENUE FINANCIAL. At that time I had spent all my working life, at that time - Over 30 years in Commercial credit and lending and Canadian business financing. I believe the commercial lending landscape has drastically changed in Canada. I believe a void exists for business owners and finance managers for companies, large and small who want service, creativity, and alternatives.
Every day we strive to consistently deliver business financing that you feel meets the needs of your business. If you believe as we do that financing solutions and alternatives exist for your firm we want to talk to you. Our purpose is simple: we want to deliver the best business finance solutions for your company.
Thursday, December 9, 2010
We Predict You’ll Love asset financing credit facilities when seeking business finance loans
Quite frankly we don’t think we exactly going out and making a stretch comment because, hundreds if not thousands of Canadian firms are investigating and utilizing this type of financing.
As the Canadian business economy turns itself around going into 2011 most of are clients are finally focused on growth again .But how is that growth to be financing, since lending standards and criteria at institutions such as the banks don’t appear to have been liberalized at the same pace that your company hopes to grow at!
That’s where our trend prediction comes in. Asset based lending focuses on your assets and growth opportunities - it doesn’t focus on rations, tangible equity in your company, rations, covenants, cash flow coverage, etc, etc, etc!
So you are picking up on the opportunity, let’s see how things work. Asset based lenders keep it simple, they lend a very high value against your ongoing assets. What are the typical assets lent against - you can almost guess what they are. They are receivables, inventory, unencumbered equipment and real estate.
The big mystery around asset based lending in Canada, based on conversations with our clients, is that business owners don’t really know or understand who these firms are. So we'll tell you.
They are specialized firms, both Canadian and U.S. based, that focus solely on providing credit facilities and business finance loans with your assets as security. They take the same security as a Canadian chartered bank would, and you manage your facility on a day to day basis, drawing down cash as you need it. Funds are wired into your account as you need them, based on... guess what ... assets! That really is the one key difference that our clients pick up on, that the total focus of this type of assets financing is the collateral itself.
We already know your next question... because we've heard it a hundred times before. Its' how much can we get ‘... followed by what does it cost.
Speaking in general terms your receivables are financed at 90% of their value, and because of the nature and marketability of different types of inventory this type of collateral is margined anywhere from 25-75% . Recall we had noted that unencumbered equipment can be drawn against also. Typically an appraised current market or liquidation value is agreed upon with you and the asset financing provider.
Costs vary around this type of financing. On occasion it is competitive with bank financing - and giving you twice the liquidity - but more often than not it’s more expensive. You offset those costs by greater access to credit facilities that will grow your business and profits.
Speak to a trusted, credible and experienced Canadian business financing advisor who can walk you through the Canadian landscape of business finance loans in the asset based lending area. You'll quickly find, we think, that our prediction is becoming more true every day, asset based financing is hot! And here to stay.
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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 6 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :
http://www.7parkavenuefinancial.com/asset_financing_credit_facilities_business_finance.html
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