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Information on Canadian business financing and an ABL asset based facility . How this type of lending can double your access to working capital financing
As asset finance is more of a general term we find lets confirm first exactly what we are talking about. That is to say we're focusing on what we can call a comprehensive business line of credit (not through a bank by the way) for your receivable, inventory and equipment and real estate financing needs. The industry term for this credit or business financing facility is an ' ABL ' or Asset Based Line of Credit.
While this type of lending has been popular and very prevalent in the United States for years it continues to gain traction in Canada everyday. A lot of mis information exists around this type of lending and financing for a variety of reasons - those include cost of the financing, how it works, and who offers it. So you are forgiven for not fully understanding or knowing about an asset based facility for cash flow and working capital - trust us you are in good company on that one!
Cost is a factor in any financing that your firm undertakes, and when we are talking about the largest business credit facility you can have cost is important. Larger Abl facilities for medium size and larger companies are very competitive with Canadian chartered banks. Smaller firms and start ups - yes even a start up can employ this type of financing! pay a premium to access this type of credit . However that premium can be explained or covered off in a number of ways.
First of all if you could double or triple your access to working capital and cash flow business financing via an asset based facility then would that lending be worth it. We certainly think it does, and have numerous examples of firms that have just done that. Recently one firm who envisioned much stronger growth in the 2011 economic environment replaced their chartered bank facility with an asset based line of credit. The facility gave them 90% advance on receivables, as well as a 60-70% advance or borrowing base on inventory. They were previously ' capped' on inventory at an arbitrary smaller amount that had nothing to do with the true value of the inventory.
ABL asset based lending is done via highly specialized firms. Typically they are not banks, they are independent, and they are experts in only one thing - your assets! As a result the due diligence and value they place on your assets can in our experience at a minimum double you access to business credit. In some cases firms that were self financing previously and had no access to business financing now have significant borrowing facilities in place.
Interested? Want to separate the wheat from the chaff as they say, on who offers ABL business financing in Canada, how it works and what it costs. Seek out an expert, credible an experienced Canadian business financing advisor for your business lending needs.
P.S. Let us know if you were able to double or triple your working capital requirements!
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Office = 905 829 2653
Click here for 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 .
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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