Is Asset Based Lending The New Stealth Financing Your Competitors Haven’t Figured Out ?
OVERVIEW – Information on asset based lending in Canada. ABL loans are tailor made business financing solutions for firms in all industries
Asset based lending is really business financing that's tailored to the needs of thousands of Canadian businesses. Perhaps yours? We're examining how these loans are helping thousands of firms gain the working capital and cash flow they need to both survive and grow their company. Let's dig in.
It's not necessarily the economy that drives firms to search for alternative financing. The reality is that its creative financing options that provide business with loans that really service the flexibility that companies need to beat their competition.
In fact we could maintain hat asset based loans are a type of ' stealth' financing, providing seamless capital as your company grows and builds it assets and sales.
Asset based lenders compete with banks who traditionally and almost always provide the lowest cost of capital in loans such as credit lines and term lending. Good news for borrowers utilizing asset based loans is that those rates have also come down due to the competition in the Canadian business financing landscape.
Asset based non bank business credit lines are often a solution when your firm’s balance sheet requires more equity. It's that equity that’s desired by Canadian banks who view your balance sheet as requiring more owner equity prior to being approved for traditional bank financing.
Asset based lenders are very aggressive on financing your assets and sales. As we have said, the ABL lender has formulas that drive maximum cash flow and capital from your balance sheet and sales revenues. (Sales revenues translate into commercial accounts receivable - which is one of the bedrock financing solutions offered by ABL credit).
It's interesting to note that asset loans tend to be utilized by firms that have good fundamentals to the opposite extreme - firms that are experiencing a temporary downturn in their finances. Firms that have realized they need ' turnaround ' financing are great candidates for asset based business credit lines and equipment loans.
Many business folks also don't realize that asset based lending is in fact a great way to help engineer an acquisition or management buyout.
At the end of the day it's simply financing that will fluctuate based upon your specific borrowing needs. In some cases it’s simply refinancing your capital needs under better terms.
We're often asked what are minimum and maximum amounts under asset based credit lines and term loans. While there really is no upper limit on any borrowing in asset lending typically smaller deals tend to be in the 250k+ range. Asset based lenders are not regulated like the banks, so comprehensive lending solutions abound in the Canadian marketplace.
Typical Asset financing solutions include one, or a combination of all:
Non bank business credit lines
If you want to have the competition talking about your financing capability 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 funding needs.
Stan Prokop - founder of 7 Park Avenue Financial –
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 :
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Office = 905 829 2653
Email = email@example.com
' Canadian Business Financing with the intelligent use of experience '
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.