Asset Based Loans : A New Model In Commercial Financing & Business Credit

Asset based Loans – Our Version Of Genetically Modified Business Lines Of Credit

OVERVIEW – Information on asset based loans in Canada. Commercial financing solutions derive from the true value of your business assets

Asset based loans in Canada - from our perspective here in the trenches a great analogy of this type of commercial financing is that this type of finance is in effect ' genetically modified ' business credit. That expression is typically defined as something that has been altered using' engineering techniques'. Let's dig in.

When it comes to commercial finance in Canada our banks kind of lump your business into a couple of basic categories - investment grade, or middle market and SME Commercial. Early stage revenue companies or start ups are at the lower end of credit quality when it comes to SME COMMERCIAL FINANCE needs.

The reason your firm might qualify for more business credit than the owner/financial mgr might think all comes back to one word - assets. They become the true collateral in business borrowing - and there's quite often a huge difference in what you're eligible to finance relative to what your financial statements say.

The typical types of collateral are inventory, receivables, and fixed assets. In today’s more high tech world other assets can sometimes be considered - that might be things like patents, or rights or contracts, etc.

Things aren’t really as complex as some might think when it comes to asset financing. Some very basic formulas drive the entire industry. A quick recap of those formulas?

Receivables - 90% financing
Inventory - % of cost
Fixed assets - current sale/market values (typically achieved by a 3rd party appraisal)

Those 3 formulas compare very favorably when it comes to bank financing - that's of course because of the more conservative stance our banks take on the ability to value your assets. Commercial finance firms on the other hand tend to have more expertise (and time to spend) on understanding what your assets are truly worth.

Business credit lines that are achieved through asset based loans are a strong alternative to bank revolving credit facilities. Although they will cost more the immediate liquidity they can bring your firm is often a lifesaver in terms of growth and daily operational activities. Simply speaking, they help lessen the cash flow crunch!

If you're looking to understand more about our ' genetically modified' business finance commercial financing seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
.


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 - Completed in excess of 100 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 & Contact Details :
http://www.7parkavenuefinancial.com

7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Direct Line = 416 319 5769

Office = 905 829 2653


Email = sprokop@7parkavenuefinancial.com

' Canadian Business Financing with the intelligent use of experience '

ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.


Stan Prokop