An ABL Business Line Of Credit Can Earn Your Company The Working Capital It Needs . Asset Based Lending Simply .. Works.

Why ABL Reverses The Cash Flow Plunge And Allows Working Capital To Soar


OVERVIEW – .Information on the ABL line of business credit in Canada . Asset based solutions deliver on cash flow and working capital when you need it the most



Can the ABL asset based business line of credit really reverse the cash flow ' plunges' that companies inevitably face? We think it can, and by the way it’s been proven by the thousands of firms in Canada and the U.S. that utilize this method of revolving credit facility for their business needs. Here's why... and how. Let's dig in.

It always helps when the business owner/manager understands the basics. So the asset based credit line for business simply a revolving credit finance solution that allows your company to draw down on working capital needs based on a high margin against inventory, equipment, receivables and real estate if that plays into the equation.

While for any type of business finance it always helps if a company has a track record a true ABL solution works for almost any type of size and firm that has assets. While transaction on the lower end of the scale might be in the 250K range there is virtually no upper limit and true asset based facilities many times run into the many millions of dollars. The only prerequisite - assets!

This method of finance a business line of credit is directly comparable to Canadian chartered bank facilities. Whether it’s the bank or your asset based lender you grant a secured position on all business assets, and then borrow against them. But in the case of the ABL facility you actually do borrow against all of those assets - daily!

The immediate question that comes to mind is of course the difference in choosing between the bank and the ABL solution. Typical ABL structures provide borrowing against 90% of receivables, 50-70% of equipment true value, and typically 50% on inventory. If your company owns real estate it is easily thrown into the borrowing mix.

It is therefore obvious to see some of the key tangible benefits of the ABL line of credit. If we had to succinctly summarize them it would be as follows:

- All business assets become borrowing power
- funding is immediate
- As you business grows the facility grows in lock step
- Easier to qualify than bank financing
- Similar to bank credit facilities you only pay for what you are borrowing at any given time
-There is not contact with your clients in a true ABL asset based solution

So the simple difference - you're borrowing on business assets and revenue growth - not cash flow ratios and covenants and debt to equity borrowing constraints. It's that covenant freedom you have been looking for - as some put it - it allows you to weather those business ' bumps in the road'.

It's easy to see why this innovative financing solution is gaining more traction everyday. In effect it has become ' respectable'! Improper perceptions occur in the marketplace when people think ABL is a last resort type of financing. In fact it’s the first resort for some of the largest companies in Canada and the U.S.

While asset base lending usually, but not always, is more expensive, the fact that you're turning asset, generating profits, and not taking on term debt often makes a lot of sense.

If you wish to reverse the cash flow plunge, letting working capital soar, seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your ABL needs.







7 PARK AVENUE FINANCIAL = ABL ASSET BASED BUSINESS LINES 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 :





CONTACT:
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