Do Not Pass Go .. Do Not Collect $ 200.00 Until You Have Looked At Asset Based Lending
Information on asset based lending in Canada. Non bank financing companies provide business credit solutions for cash flow and working capital needs
Asset based lending in Canada comes in all shapes and sizes. When it comes to looking at alternative finance strategies for your business it just might be time to ' REBOOT' your thinking.
Many business owners and financials managers, particularly in the SME sector in Canada continue to find that all their finance needs can not always be met by traditional Chartered bank / Credit Union sources. While Canadian banks continue to have virtually unlimited capital to serve business needs in many cases the borrower can't meet the requirements needed to attain those solutions.
So while public companies and large well heeled corporations are borrowing at will the challenge is much more difficult if you're not in one of those two categories.
Enter... stage right...
Financing companies providing these solutions don't make it complicated either. They take all, or certain of your assets (depending on the amount and type of capital you are looking for) and put them into collateral pool that you can borrow against. They can be a combination of working capital/line of credit solutions or even term loans if that makes sense.
The assets in question?
Receivables
Inventory
Equipment
Tax credits
Real estate
Large contracts/orders
And here's the good news. You can mix and match!
So who is this type of financing well suited for? Typical clients we meet tend to be:
High growth
Start Ups
Restructuring
Acquisition oriented
Management buy outs
A key attraction in Asset based lending in Canada is simply the fact that it requires less equity as the focus is all about those assets.
In business financing its not always a perfect world , so typical financing /interest rate costs offered by financing companies that are in effect non bank lenders are going to be higher , one reason being those finance firms borrow the funds they need for you from the banks!
We do point out to our clients that if they can meet typical bank borrowing criteria often an asset based line of credit will be both competitive with the banks but most importantly give you a lot more borrowing power. The simple reason for that is that assets are 'margined' or ' loaned against' more aggressively. In many cases companies that temporarily use Asset financing often migrate back to a traditional bank solution.
If you're looking for innovative solutions for business assets and sales growth for your firm consider seeking out and speaking to a trusted, credible and experienced Canadian business financing advisor with a track record of success who can assist you in your particular needs. It's time to ' reboot ' your thinking on the financing solution you require!
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 :
7 Park Avenue Financial = Canadian Asset Based Lending Solutions
Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
Stan Prokop
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