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Make Asset Based Lines Of Credit Work For You Today
Information on how asset based lines of credit are the alternative to traditional bank financing. Supercharge your receivables and inventory financing ! Here's how!
Looking for understatements .?We always are. Here's one... ‘Business financing has never been more difficult to achieve than in the last couple years ‘! Now that’s an understatement. It seems to be all about problems and never about solutions.
What if there was a type of business financing in Canada that made all firms eligible yet at the same time gave you access to unlimited amount of credit , and only had one requirement . Too good to be true? Not necessarily. And what is that requirement our clients always ask, and the answer is ' assets ‘.
Canadian asset lending via a non bank asset backed line of credit makes business loans sense today more than it ever has before.
Let’s get to the core of the solution, and then you'' see how that solution can fix your current financing challenges. This type of business operating loan is a revolving line of credit that is secured by inventory, accounts receivable, and other balance sheet asset accounts as may be applicable. (Typically those might be equipment and real estate in some cases)
Is there a size that seems to make the most sense when you contemplate such a financing. We have found through experience that clients that require at least a 250k/mo operating working capital requirement are the best candidates for this type of financing. There is virtually no upper limit on asset based line of credit financing in Canada!
We always come back to the word ' assets' in discussing the availability of this type of financing. On a day to day basis you monitor your receivables, inventory, etc and simply draw down against them. As you can see the facility fluctuates every day simply because each day your firm bills new customers, collects receivables from past sales, and purchases inventory and converts that product into a sale and resulting receivable. That whole process is known as your operating cycle.
Asset backed lending in Canada is a secured form of lending that grows as you grow. That’s the main difference from a chartered bank line of credit, which typically has fixed limits and imposes all sorts of other conditions re rations, covenants, collateral, and personal guarantees on the business owners and managers. That’s now that asset lending via bank line of credit is about in Canada.
The key qualification difference here is that a large amount of the approval process for this type of facility revolves around verifying your assets such as the quality of your receivables, inventory turns, , and your ability to ' scorecard' your business via proper financial reporting every month around receivables and inventory .
Does our solution make sense? We think it does if you are in one of several categories, including not being able to access bank credit, not being able to access enough bank credit, and if your firm is in a growth mode and has assets that can be financing for working capital needs .
Speak to a trusted, credible and experienced Canadian business financing advisor who can guide you through the asset backed line of credit strategy for your firms survival, growth, and profit.
7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
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
