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How dare us. Are we actually saying you, the Canadian business owner of financial manager don’t know how to run your business? Not really! Our point is that you in fact may have missed one of the most solid strategies out there today when it comes to business loan financing. Simply speaking, if you haven't looked at an ABL lender for asset based finance business lines of credit, you just may be missing the boat when it comes to an asset based loan.
BUSINESS REFINANCING IS A CHALLENGE
We do think we can relate to the Canadian business owner though because we're the first to acknowledge that refinancing your business, in good times or bad is both a challenge and concern to the owner/manager. ABL lending is the solution that just might work!
U.S. AND CANADA SIMILAR GROWTH IN ABL LENDING
Whether you like it or not we often, in Canada, get our business trends from the U.S. (We’re not necessarily thanking them for the 2008 worldwide implosion), and in the states, asset based lending drives a huge amount of business financing. So, we should at least look into that, right?
WHAT IS THE ABL LENDING ASSET BASED LOAN SOLUTION AND WILL IT SOLVE CASH / WORKING CAPITAL CHALLENGES
When we talk to clients about asset-based financing their business initial conversations focus on two areas - first of all, a definition of the subject, and secondly where ABL fits in the cash flow solution.
In terms of our subject matter let’s get straight on a definition in asset based loans. We're talking about what some call a ' comprehensive ' ABL lending loan , that is to say, it is in fact one business financing revolving line of credit facility that lumps together accounts receivable , inventory/finished goods/work in progress, fixed assets, and even real estate if your firm has that, into the mix. Real estate in ABL typically means owner-occupied and owned premises.
And where then does ABL lending fit? That’s the good news, as it fits... everywhere. This type of business financing facility can function as a business line of credit, it can be used to purchase another firm via the other firm's asset base, and it is more often than not used to replace or pay out a bank facility when that isn’t working for the client. Bottom line, a true business catch-all!
WHO USES ABL?
So who uses asst based lending ABL? That’s probably one of the biggest surprises to clients when we put forth an asset based ABL lender solution. Why? Because what form of finance can be used from start-up to the world's largest corporations. Certainly, none that we are aware of. Although not widely publicized, many of the world’s largest and most successful corporations utilize ABL as an alternative to traditional bank financing. It classic balance sheet finance 101 with a focus on .. Assets!
Cost is always a discussion point when you consider a new form of daily financing for your firm. Here you need some clarity, because asset based business credit lines are cheaper than bank facilities, and they are also more expensive. What drives your final cost is your overall creditworthiness, the size of the facility, the level of accounts receivable and inventories, and who you are dealing with. That's the quick answer to ' whets my rate '?
So what do you need to really consider when it comes to assessing a new business line of credit asset based solution?
KEY AREAS REQUIRING FOCUS IN YOUR ABL LENDING DECISION VIA ASSET BASED LENDERS
Some key areas to focus on / explore and discuss are:
What are the direct advantages of ABL working capital solutions? (More borrowing power)
Can both private and public companies use it? (Answer - yes!)
How does the facility operate on a daily basis different from a bank line re: access to cash flow - (it doesn't)
Does ABL deliver more cash to my business (yes, 99.999999% of the time?)
CONCLUSION
Speak to a trusted, credible and experienced Canadian business financing advisor on why this solution for daily financing of your company... works
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Email = sprokop@7parkavenuefinancial.com
Click Here For 7 PARK AVENUE FINANCIAL website !
7 Park Avenue Financial provides value-added financing consultation for small and medium-sized businesses in the areas of cash flow, working capital, and debt financing.
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. He is an experienced
business financing consultant
.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 financing 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.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
7 Park Avenue Financial/Copyright/2020
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