Does ABL Loan Facility Financing Give Your Business Credit Needs The Wind In Your Sails You Require?

Looking for a business credit finance boost ?



OVERVIEW – Information on the ABL loan facility financing known as an asset based business credit line




Business credit in Canada. Can An ABL Loan facility financing really provide you with that business ' wind in your sails ' your company needs to generate ongoing working capital and cash flow needs? We think so, and here's why! Let's dig in.

These days, as we’ve noted recently, there isn’t a day when we don’t hear abut the challenges of companies ' stumbling ' when it comes to their challenges in finding working capita and even long term financing. (Today we're talking about working capital/ cash flow)

However, the good news about the revolving door is that it when ' the bank says no ' or the bank says ' yes, but not that much ' there is always an ABL asset based lender willing to step up to bat .

The simple reason that asset based lenders provide the business credit you need is that they are solely focused on the amount, quality and monitoring of your business assets. Those assets? They are receivables, inventory, equipment, and in some cases real estate if that pertains. Our Canadian chartered banks in their wisdom focus on financial statements, ratios, covenants, and outside guarantees. Who is right? We won’t weigh in on that one today; we'll simply say that each institution, the bank and the ABL lender is one of two options to finance your business- we'll let you decide which one works best. While ABL solutions are often more expensive (not always) that’s clearly one of the reasons why companies gravitate to bank financing first. By the way, Asset based lending firms tend to be non bank commercial financing companies, although some Canadian chartered banks have entered the ABL market.

An ABL loan or operating revolver as it is termed offers your firm continuous working capital as long as you have those assets. The key beauty of this type of borrowing is that it grows with you; it’s not set in stone once as year as it might be via a bank approval

Who uses ABL? Pretty well every type of firm in Canada - that includes manufacturers, service firms, retailers, and high technology firms. Again, pretty well everybody! Size of these facilities really determines who you deal with and your overall pricing and structure. Small deals start in the 250k range, while larger facilities can easily be in the tens of millions of dollars. Just to show you the spectrum, a start up can have an abl line of credit, and some of Canada's largest and public corporations have abandoned bank financing in favor of ABL business credit.

A key benefit of this type of business line of credit tends to be borrowing power - receivables are margined at 90%, inventory ranges from 20-70% , and appraisals and valuations done on your fixed assets allow them to be thrown into the mix also . Just imagine being able to borrow daily against the value of your fixed assets. That’s ABL power!

Your firms ability to get approved for this type of borrowing will depend on you ability to produce regular and proper financial statements, as well as the need to ensure you can report on current assets on an ongoing basis - i.e. aged receivables, inventory, etc .

Intrigued? As a Canadian business borrower you should be. Seek out and speak to a trusted, credible and experienced Canadian Business Financing advisor who can assist you with your ABL business credit needs.



7 PARK AVENUE FINANCIAL
CANADIAN ABL LOAN 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 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-loan-facility-financing-business-credit.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