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Information on business lines of credit and asset loans . Numerous strategies are available for your company's cash flow & working capital needs
has a new success story when it comes to business lines of credit and asset loans. Although it’s clearly been around for awhile we run into tens of clients who haven’t even heard of the solution, but boy do they know they have a business financing problem! The ' supercharger' we are referring to is an ABL; an asset based business line of credit.
Let's make sure you understand the basics first - and it’s actually quite simple. An ABL facility is a revolving line of credit, which, surprise, surprise, is typically offered by an institution other than a bank! That’s what really surprises some of our clients. These business lines of credit, or asset, or asset loans are credit facilities that support your receivables and inventory, just as they would if your firm qualified or had access to a Canadian chartered bank facility.
Can we add a little more ' supercharging' to the mix - yes we can. The Abl facility can actually include equipment and real estate which can be bundled into the facility if your firm has those assets for additional leverage. So what is happening is that you as a Canadian business owner or financial manager are using your ' asset rich' status and monetizing that into temporary working capital and cash flow. That’s a good thing.
So who in Canada is already ' supercharging' their credit facilities outside of the bank environment? Literally thousands of companies, including some of the largest corporations in Canada. We would point out though that the general lower end of this type of facility typically is 250k, but after that the sky is the limit with respect to transaction size.
There is a common perception out there that this type of financing is for companies that are experiencing financial challenges - and to be fair , because the program is asset based these business lines of credit and asset loans are available to firms who are doing well, and those not doing well or experiencing dire challenges . That accessibility for corporations and industries of all types is what is fueling the asset based line of credit facility growth in Canada.
It's never a perfect world, so we advise clients to expect a higher cost of funds than that of a Canadian bank facility - but at what cost would you pay more for a facility that margined all your assets, including fixed assets and real estate. When proper value is agreed upon with your firm and the asset based lender you can actually margin and utilize cash flow on your unencumbered equipment and equity in real estate.
In summary, first, you can supercharge your working capital and cash flow via an ABL facility, which is a direct alternative to any method you are utilizing today. Secondly, your liquidity could literally double if you are in a position to monetize some of your equipment and or real estate, without taking on any additional debt!
And, thirdly the facility does not exclude any type of firm from applying, so you can take advantage of Canada's newest form of financing today! , thereby accelerating your growth and profits.
Seek out and speak to a trusted , credible and experienced Canadian Business Financing advisor who can assist you with your business funding needs.
7 Park Avenue Financial :
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Office = 905 829 2653
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 .
' 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.
Stan Prokop
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