What is Asset Based Lending? And Why Should You Care?

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How to Get Ahead in Financing with Asset Based Lending

How does asset based lending work ? That's a typical question we get when we're meeting with clients and discussing asset based finance solutions. While some business owners may consider it a second, or alternative option the reality is that in many cases it might be your only solution to business cash flow success.

That's because in many cases traditional finance solutions might be out of reach, for a variety of reasons, for many business owners and financial managers. Therefore mgmt should well consider funding options for alternative financial providers.

What are the reasons you might be looking for a new financing solution/solutions for your company . One might be simply: Growth! Whether you are a start up or growing into faster and more sales for your established company the reality is that traditional loans have a lot of criteria in place when it comes to applying for finance . That's when it's important to properly present your revenue and cash flow plans in a proper manner.

Some asset based lending solutions revolve around assets your business already owns . Assets such as equipment, rolling stock, real estate and yes, even purchase orders can be financed through specialized alternative finance.


You are probably starting to realize now that asset based lending is more focused on the present and future, while traditional finance requires a focus on the past such as cash flow, owner credit history, etc, While these are nonetheless important they are not the primary focus of ' ABL ' ( asset based lenders ) firms.

Flexibility is the key when it comes to these ' new world' business finance solutions. They can be used to grow your business, acquire a competitor, or expand into new markets. In many cases the ABL solution will be a refinancing of your existing debt and assets.

Depending on what type of alternative finance solution you accept in many cases no new debt is incurred- therefore being cost effective in the true sense of the word. Three common sources of asset based lending are invoice financing, purchase order finance, and inventory finance. These solutions simply increase cash flow and allow your business to grow and make good sense.

Speak to a trusted, credible and experienced Canadian business financing advisor to investigate your business finance needs.







7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

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 .

' 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.



Stan Prokop