Get Rid Of Business Line Of Credit Phobia . Why Asset Based Lending Via An ABL LOC Works !

Business Credit Lines In Canada . Are There Options?



OVERVIEW – Information on the business line of credit known as ABL Asset Based Lending facilities . Why this credit facility eliminates business financing fears.



The business line of credit. Many entrepreneurs often fail to achieve the financing they need if not for the reason that they simply have a bit of a phobia

around the issue. We're told that a phobia is an ' irrational fear of a specific object or activity ... leading to a compelling desire to avoid it '.
Unfortunately , we can't afford to Not address business financing!

Could that be the case with many Canadian business owners and financial managers? In discussions with them we certainly think that might be the situation . Let's try and cure that phobia. And the way in which we think we can demonstrate that is to show you that your firm is in fact very viable when it comes to business financing - it's just that you might not know where to go and what sources of lending might be optimal for your firm.

Enter the ABL , which is an asset based lending arrangement that mirrors in daily activity a commercial bank line of credit - its simply a bit easier to achieve and in many cases delivers more . That's what Canadian business financing is all about, right?

We often feel that Canadian businesses don't achieve the bank financing they need because the requirements of such a facility, as low priced as it is, are simply too narrow to allow your business to ' fit in’. Your firm needs to fit what the finance and credit folks call ' THE BOX '- If you don't fit you don't belong.

Bank commercial credit lines, as opposed to our ABL solution , require that you can produce sound financials- Repayment is clearly linked to your balance sheet and cash flow. While the approval process in Canadian banking can only be described as somewhat... shall we say ' rigorous' (as opposed to painful?) The reality is of course that the low rates associated with bank financing alone make that journey often worth it and Canadian banks are among the best on the planet .

So if you can pass the financial tests such as debt to equity, cash flow coverage, profitability, etc it’s definitely with it to purse Canadian chartered bank lines of credit. In the old days we spoke of the 5 C's of bank credit approval. They included your personal character and finances, cash flow capacity, collateral company and personal, capital or equity, and, dare we finish with ' comfort and confidence ' by the bank in you or your company.

But what happens when your business can't meet bank criteria? The reality is that an asset based lending solution, commonly known as an ABL line of credit is in fact the perfect solution you were looking for - you just didn’t know it existed.

Asset based credit lines are more often than not delivered by commercial non bank finance companies. The facilities revolve, just like the bank line, and the total focus of getting approved revolves solely around the value of the business assets. And what are those assets? They include receivable, inventory, fixed assets, and even real estate if that is in your company asset mix.

The ABL facility is most appropriate for firms that have assets, can’t get Canadian bank financing, and are experiencing situations such as high growth, turn around, temporary under capitalization, etc.

Asset based lending lines of credit are sometimes priced the same as bank lines if you have a large facility in the 5-10 Million dollar range, but the majority of facilities range from 250k and upwards , and are priced higher thank bank rates. If you have good assets and can produce proper financial reporting on items such as receivables and inventory you are in a position to get approved - fairly quickly all things being equal.

Have we cured that phobia about being able to get a proper business line of credit in place? We hope so. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your financing needs, and give your real scoop on ' ABL '.

7 PARK AVENUE FINANCIAL
CANADIAN BUSINESS LINE OF CREDIT 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 10 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-line-of-credit-asset-based-lending-business.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