Business Line Of Credit Strategy Required? Check Out Asset Based Lending

The Dirty Little Secret Your Banker Won’t Tell You About Asset Based Lending As A Business Line Of Credit Alternative

OVERVIEW – Information on a business line of credit facility known as ' asset based lending ' - Check out this Canadian business financing solution for you cash flow and sales growth needs

A business line of credit alternative comes with a dirty little secret. That secret? Canadian banks aren't the only ones to offer full blow credit lines that allow you to margin receivables, inventory, equipment, and even purchase orders! That solution by the way is called ' asset based lending'.

Can you blame someone for not telling you about a good thing? No surprise then that asset based lending is the dirty little secret in asset finance that that bankers in Canada don't necessarily want to let you know about.

So we're sharing that secret with you and touch on why it's such a powerful non bank financing strategy. Let's dig in.


Understanding why asset based financing is so different requires the need to understand what we are comparing it against. The comparison is of course an operating line of credit with a Canadian chartered bank. They are great, low cost, and run smoothly on a daily basis. If... and we repeat if... you can get one and get it increased as you need it.

Your ability to access a business line of credit with the bank focuses in on everything you probably feel isn't necessary. You have assets; you have growth, so what’s the problem. The chartered banks, in their wisdom allocate these lines of credit based on yes... the assets... but as importantly ratios, covenants, personal guarantees and outside collateral.

Nobody does a better job and at the lowest cost than our Canadian banks. They do that because they are lending you my money which is on deposit at their bank. So all power to safe lending practices, and that's why Canadian banks are some of the strongest in the world.

That brings us back to: asset based lending in Canada and why this type of asset finance is a powerful working strategy. And could it be simpler. Not really. It focuses on the two things you have always had... assets and growth potential for sales and profits.

Asset based lending is the ability of your firm to borrow, daily, as you need it , against receivables, inventory, as well as equipment and real estate if they factor into the picture . It supports your business credit needs, and does not, we repeat, does not overly focus on the bank requirements we mentioned.

Dirty little secret # 2 - Some of the Canadian banks actually have small boutique divisions of asset based lending! In our experience these divisions don't communicate properly with regular commercial bank divisions around what their offering is- that’s just our opinion.

So who actually offers this type of asset based lending. In Canada it's a relatively small handful of firms, some of which are U.S. based, and who have a tremendous expertise on the things you already have, inventory, receivables, and purchase orders and contracts.

Asset finance can cost the same as the chartered bank offering, in ,many cases it costs a bit or a lot more, depending on the size of your transaction .A business line of credit via an asset based line of credit generally starts at 250k and goes up to anywhere up to 50 Million or more!.

Accessing and navigating the maze of this boutique financing is difficult for the Canadian business owner and financial manager. The solution? Speak to a trusted, credible and experienced Canadian business financing advisor on why asset based lending is the secret you want to know more about.

7 Park Avenue Financial :
http://www.7parkavenuefinancial.com
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 100 Million $ of financing for Canadian corporations


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 '



Stan Prokop