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!
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
Our goal is to help small and mid-sized business owners by providing a simple and convenient alternative to a traditional bank business loan.
ReplyDeleteOur business cash advance and small business loan programs provide real solutions for business owners faced with the reality of disappearing sources of working capital. Traditional sources of capital, such as bank loans, home equity loans, and credit card loans, are no longer options for many businesses.
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