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Information for Canadian business owners and financial managers around a financing mechanism to solve for commercial finance pressures. Why an asset based lender might be your Canadian business financing solution
For many years now the non bank asset based lenders have been working with firms such as yours on credit facilities that fit the real world need of your company when it comes to inventory, receivables, equipment and real estate.
Canadian business owners and financial managers are probably asking themselves why they haven't heard of this before - we'll hit you with another shocker, some of the Canadian banks even have internal divisions of asset based lenders that compete with their regular commercial banking business!
Anyway, the bottom line is that this Canadian business financing solution might be your ultimate cash flow and working capital solution.
For the uninformed asset based lending is essentially a revolving line of credit which provides you with working capital, cash flow to cover your operating expenses and growth needs. Why is it different then from a typical bank type operating loan? Simply because there is only one focus, the assets. And because the asset based lender is a specialist in commercial finance and the value of your assets you ability to draw on those assets intensifies greatly - in many cases you will obtain 50-100% more leverage on your current assets than you ever have before.
Again, why is this so different - its because the focus is on your personal credit, your company's current or past challenges... its solely on, you guessed it..' the assets'!
In certain cases even a purchase order financing type facility can be put in place, and more often than not the asset based lender will accommodate what we term as ' bulges' or unusual temporary needs of your business based on seasonal cash flow, large new orders or contracts, etc.
As a business owner we think you can see that the total focus now seems to be on your future sales ability and the overall bench strength of your assets. It certainly is not untypical to receive 90% financing on receivables and 50% or often more on your inventory as ongoing advances for your cash flow needs. We also tell clients that unencumbered equipment can be factored into the facility also, so you in effect have a fixed asset that provides you with working capital. That's creative financing!
Clients always asked what the approval criteria are - the truth is that the criteria that an asset based lender requires are significantly less demanding than those imposed by bank, the latter focusing on rations, covenants, external collateral, strength of persona guarantees, and on it goes.
Commercial finance made easy is a great by line for an asset based line of credit. After a standard business financing application and submission of back up date which would include aged receivable, inventory listing, equipment list, recent financial statements, etc you would typically receive an expression of interest. After initial due diligence on your overall asset size and quality typical security documentation and registration takes a couple of weeks.
Speak to a trusted, credible, and experience Canadian business financing advisor who can provide you with clarity on cost, process, and most importantly, the benefits of an asset based line of credit or working capital facility.
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 13 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
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
Article Source: http://EzineArticles.com/expert/Stan_Prokop/432698
Article Source: http://EzineArticles.com/5405332
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