What Are The Real Benefits Of A Non Bank Business Line Of Credit ?
OVERVIEW – Information on the business credit line option in Canada. ABL asset based facilities offer key benefits not typically available in revolving bank lines.. here’s why and how
Business credit line needs can often fully be satisfied through an ' ABL ' asset based credit facilities. They are ' non traditional ' in nature only because the sole ' traditional ' solutions is Canadian chartered bank facilities. Yet they deliver on everything you need and more often than not... more. Let's dig n.
When the Canadian business owner / financial manager thinks of revolving credit facilities they rarely think ' outside the box ' so they are quite surprised to find out from us that all business assets can be combined into one total borrowing facility that revolves based on day to day business needs, seasonality, ' bulges ' in sales growth and cash flow requirements. Hence the name ' Asset Based Line of Credit '.
They two issues that immediately need to be table when it comes to focusing on a business credit requirement are ' facility size ' and the cost. We can clarify and explain the cost issue very quickly - ABL costs more 99% of the time; but the benefit is unlimited access to credit needs based on your sales. It's common knowledge that business borrowing costs today at the bank level are the lowest in recent history.
But ' cost' should never be the only factor when it comes to business borrowing - so when ABL offers all the capital you need to run /grow your company we're suggesting you listen.
Oh, and by the way, have we forgotten to mention that thousands of companies actually cannot qualify for either any, or all of the financing they need at certain critical times. That alone is a good reason to entertain Asset based lending facilities.
We are not presenting the ABL solution as the 'be all and end all ' method to finance your credit line needs, but it clearly is a logical alternative to traditional borrowing. The spectrum of users of ' ABL ' is very large, from start ups to the largest corporations in the world. Naturally it's those larger corporations that represent the small percentage of applicants that can actually achieve bank or better pricing.
To qualify for ABL your firm must be able to produce regular financials and report on the current assets in your business in a regular manner - typically monthly, on occasion even weekly. That typically is not as bad as you think - it’s just about providing regular reports on aged payables, receivables, and inventory lists. We suggest to clients that if you can’t provide those reports you're in bigger trouble than you think... if not today... tomorrow.
ABL business credit lines provide 90% financing on A/R, 30-70% finance of inventories, and even combines the value of your unencumbered fixed assets. At the end of the day that simply means anywhere from 50-100% more borrowing power on an ongoing basis. Remember also that this facility, unlike the typical bank line grows as your sales grow, and is not fixed, which typically is associated with a bank credit line.
If you're looking to feel ' in charge ' of your working capital and cash flow needs and want to explore the real benefits of ABL asset based credit lines seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can assist you with your reinvention of credit solutions.
Stan Prokop - 7 Park Avenue Financial :
http://www.7parkavenuefinancial.com
7 PARK AVENUE FINANCIAL = CANADIAN ABL ASSET BASED CREDIT LINE EXPERTISE
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Oakville, Ontario
L6J 7J8
Direct Line = 416 319 5769
Office = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
' Canadian Business Financing With The Intelligent Use Of Experience '
Stan Prokop
