Business Finance Challenges ? Now What ? Asset Based Finance Comes To The Rescue
OVERVIEW – Information on asset based finance solutions in the Canadian financing landscape. Do these business loans make search for your company ?
Asset based finance has the ability to remove many of the challenges faced by business owners and financial mgrs in Canada. Let's dig in.
Most top experts in Canadian business financing consider asset based lending a different form of funding your company - the other end of the spectrum being traditional bank financing. How is it different? Simply because the entire focus is pretty well on specific assets that essentially give you big time borrowing power against 4 asset categories , either one of those or in combination.
The asset categories?
Depending on what business and industry your firm is in you're either top heavy in one or more of those categories, or perhaps not at all.
What then is the key benefit to asset based finance business loans and financing solutions? To put it simply:
FASTER ACCESS TO CASH!
Traditional financing forces you to address key issues such as what your balance sheet looks like, as well as focusing on historical, present and future cash flow/projections. Your company may not necessarily have what it takes there, or in some cases you're newer in business or even a start up.
A lot of companies that utilize asset based ' ABL ' lending solutions in Canada have a lot of seasonality or ' bulges' in their business cash flow needs. The ability to therefore rely on your ongoing asset base really helps smooth out those bulges!
While personal guarantees are almost always an issue for the business owner we can say that this type of guarantee, considered ' valuable ' or a ' must ' in banking circles has much smaller, or no emphasis in asset based lending . Additionally true asset based finance deals are pure asset monetization.
1. They bring no term debt to the balance sheet
2. There is no equity give up
We do need to mention though that while some consider ABL cash flow solutions as their ' holy grail ' in business cash flow financing you must be able to properly report on assets or be willing to go thru some form of appraisal process when it comes to adding inventories, fixed assets, or real estate to your credit line borrowing mix . From the commercial non bank lenders perspective they are relying heavily on the true marketability of your company asset base
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 cash flow and 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
2910 South Sheridan Way
Direct Line = 416 319 5769
Office = 905 829 2653
Email = email@example.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.