In 2004 I founded 7 PARK AVENUE FINANCIAL. At that time I had spent all my working life, at that time - Over 30 years in Commercial credit and lending and Canadian business financing. I believe the commercial lending landscape has drastically changed in Canada. I believe a void exists for business owners and finance managers for companies, large and small who want service, creativity, and alternatives.
Every day we strive to consistently deliver business financing that you feel meets the needs of your business. If you believe as we do that financing solutions and alternatives exist for your firm we want to talk to you. Our purpose is simple: we want to deliver the best business finance solutions for your company.
Tuesday, December 16, 2014
An Asset Based Bank Line : The Somewhat Radical Power Of Business Credit
No Engineer Required For Asset Based Financing In Canada
OVERVIEW – Information on the business credit solution known as the ABL asset based bank line . It’s non bank in nature and supplies businesses with all the liquidity they need based on assets and growth.
Business credit needs sometimes give owners/managers the feeling they need an ' engineer ' of sorts for financing such as an asset based bank line. In their mind they want a financing for now, and the future that ' fits right ' and is chock full of the advantages they need to run and grow their business.
Because some or all of the finance solutions you need arent necessarily available from Canadian chartered banks one alternate solution is the asset based ' ABL ' line of credit. It's one solution that puts your firm, the borrower in the drivers seat when it comes to unlimited capital relative to your growth needs. That's a radical statement of sorts, so let's dig in.
Many clients we meet with initially are very reluctant to step ' outside the box ' when it comes to what they consider to be ' traditional ‘working capital and cash flow needs. However, in case you haven’t noticed, times are changing!
While traditional bank lines come with the lowest cost in Canadian business financing they can be limiting when it comes to the limits the bank might place on leverage - or in other cases being unable to address the seasonality and bulges in your business.
The asset based non bank ' ABL ' credit line does come with some obligations on your firm’s part. One of them is the need to report more often, always monthly but sometimes even more on the assets part of your business. Typically that's simply aged schedules of receivables, inventory, and fixed assets. We would submit that if your company can't produce these efficiently on an ongoing basis there's probably other problems lurking on your financials.
The revolving credit facilities you need are often the most sought after part of the Canadian business financing puzzle. The asset based credit line has the potential to solve all your liquidity problems if structured and managed properly.
Companies that have higher debt , as well as balance sheet ratios that don't meet bank requirements but still have current assets ( A/R & INVENTORY ) have just discovered that they now have access to all the liquidity they need , albeit at an often higher cost .
When we explain the ABL asset based solution to clients it’s a function on focusing on the two different ways to look at a revolving credit line. The banks focus on cash flow, historical, present, and future. The asset based lender takes an ' alternate' approach, instead focusing on the hard assets in your business, monetizing them into one revolving facility. These types of facilities are also widely used in buyouts, acquisitions, and general refinancing of a business.
If you wish to explore the somewhat ' radical ' power of the asset based bank line and feel you need more ' business credit ' and flexible financing seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can assist you with your financing needs .
Stan Prokop - 7 Park Avenue Financial :
Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 90 Million $ of financing for Canadian corporations . Info /Contact :
7 PARK AVENUE FINANCIAL = CANADIAN ASSET BASED BUSINESS CREDIT LINE EXPERTISE
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7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Direct Line = 416 319 5769
Office = 905 829 2653
Email = firstname.lastname@example.org
' Canadian Business Financing With The Intelligent Use Of Experience '