Achieve the Impossible With ABL ? How The Asset Based Line Of Credit Facility Creates Financing

This Day In Canadian Business History : April 5, 1966 - Canada signs three-year deal to sell $550 million worth of wheat to China.



Our Comment : ‘ Fast Forward To 2012 – China deciding to just buy Canada via an all cash sale’ – Stan Prokop



Need Financing For Any One Of These 5 Situations?


Information on the abl asset based line of credit facility . Why this facility works for Canadian business in a wide variety of circumstances .




Why do we maintain ABL financing achieves the impossible? For us, it seems pretty simple. It's that just one type of Canadian business financing, the asset based line of credit facility, can successfully address, and answer ' YES ' to the following questions:

Is Your Firm viewed as high risk by other more traditional institutions such as Canadian chartered banks?

Do you wish to acquire a competitor or another firm?

Do you need interim financing while in the stages of a ' turnaround'?

Are you experiencing ' hyper growth ' without the necessary financing to handle that growth?

Are you considering a bankruptcy/ receivership or in one now?


Doesn't it seems incredible that one unique method of financing can address those 5 issues, or is it just us that's impressed? Hopefully not.

ABL finance has gradually grown in popularity in Canada; we're often surprised why it has not grown faster. The reality is that some of the largest companies in Canada, both public and private now utilize this type of financing. Even more interesting, and somewhat ironic is that Canadian banks have boutique divisions that are also offering this method of finance.

We have often felt though that in the case of the banks there aren't to many differences in some of the credit criteria, which is great for pricing and size of the facility, but less so for approval!

So how do asset based financings in fact address the 5 business concerns we profiled earlier. It's actually pretty simple as a concept. In essence it's a line of credit facility that bundles all your assets into one revolving line of credit. We can't over emphasize the word ' assets ' - that’s the strength of the financing. In the case of ABL its not about ratios, covenants, outside collateral, high emphasis on personal guarantees... its just about... you guessed it .. ‘Assets’!

As the levels of your financing expand you are in a position to borrow against these rising assets due to sales expansion, etc. Naturally it goes without saying that the margining of these assets is what your new found liquidity is all about. For a starter A/R and inventory is margined at typically 90% and 30-70% respectively. That liquidity is further enhanced by allowing you to borrow against equipment and real estate within that same facility.

In Canada facilities such as this typically start at 250k and go to tens of millions of dollars. And they do address all of the 5 situations we have mentioned.

Speak to a trusted, credible and experienced Canadian business financing advisor on how an ABL asset based line of credit facility just might be what you need ... today!



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_asset_based_line_of_credit_facility.html