An ABL Business Line Of Credit Can Earn Your Company The Working Capital It Needs . Asset Based Lending Simply .. Works.

Why ABL Reverses The Cash Flow Plunge And Allows Working Capital To Soar


OVERVIEW – .Information on the ABL line of business credit in Canada . Asset based solutions deliver on cash flow and working capital when you need it the most



Can the ABL asset based business line of credit really reverse the cash flow ' plunges' that companies inevitably face? We think it can, and by the way it’s been proven by the thousands of firms in Canada and the U.S. that utilize this method of revolving credit facility for their business needs. Here's why... and how. Let's dig in.

It always helps when the business owner/manager understands the basics. So the asset based credit line for business simply a revolving credit finance solution that allows your company to draw down on working capital needs based on a high margin against inventory, equipment, receivables and real estate if that plays into the equation.

While for any type of business finance it always helps if a company has a track record a true ABL solution works for almost any type of size and firm that has assets. While transaction on the lower end of the scale might be in the 250K range there is virtually no upper limit and true asset based facilities many times run into the many millions of dollars. The only prerequisite - assets!

This method of finance a business line of credit is directly comparable to Canadian chartered bank facilities. Whether it’s the bank or your asset based lender you grant a secured position on all business assets, and then borrow against them. But in the case of the ABL facility you actually do borrow against all of those assets - daily!

The immediate question that comes to mind is of course the difference in choosing between the bank and the ABL solution. Typical ABL structures provide borrowing against 90% of receivables, 50-70% of equipment true value, and typically 50% on inventory. If your company owns real estate it is easily thrown into the borrowing mix.

It is therefore obvious to see some of the key tangible benefits of the ABL line of credit. If we had to succinctly summarize them it would be as follows:

- All business assets become borrowing power
- funding is immediate
- As you business grows the facility grows in lock step
- Easier to qualify than bank financing
- Similar to bank credit facilities you only pay for what you are borrowing at any given time
-There is not contact with your clients in a true ABL asset based solution

So the simple difference - you're borrowing on business assets and revenue growth - not cash flow ratios and covenants and debt to equity borrowing constraints. It's that covenant freedom you have been looking for - as some put it - it allows you to weather those business ' bumps in the road'.

It's easy to see why this innovative financing solution is gaining more traction everyday. In effect it has become ' respectable'! Improper perceptions occur in the marketplace when people think ABL is a last resort type of financing. In fact it’s the first resort for some of the largest companies in Canada and the U.S.

While asset base lending usually, but not always, is more expensive, the fact that you're turning asset, generating profits, and not taking on term debt often makes a lot of sense.

If you wish to reverse the cash flow plunge, letting working capital soar, seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your ABL needs.







7 PARK AVENUE FINANCIAL = ABL ASSET BASED BUSINESS LINES OF CREDIT EXPERTISE


Stan Prokop - founder of 7 Park Avenue Financial –
http://www.7parkavenuefinancial.com
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :





CONTACT:
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
















Stan Prokop

The ABL Line Of Credit . You Need This Info On The Asset Based Lending Business Facility

A Business Speed Dating Overview! But Wait – There’s More ! What You Need To Know About The ABL Credit Facility In Canada


OVERVIEW – . Information on asset based lending in Canada . What the business owner wants to know about the ABL business line of credit for working capital and cash flow needs




The ABL line of credit in Canada. It's the product of a Canadian business financing tool that is a replacement for what business owners and managers know as the revolving business line of credit. What that is typically offered by ' the bank ' in the case of ABL it's a product offered by commercial finance companies. Unknown to most, it's also available at the bank, but we digress.

Today we're in SPEED DATING mode , from a business perspective !It's that process of sitting down , learning some key information on someone ( in our case ' something ' ) , moving on, learning more, and then .. making a decision. Strap yourself in and hang on! , as a lot of info is going to come at you pretty fast.

- The ABL facility is a revolving business line of credit that uses all your business assets to secure the line of credit ' loan ' - it’s actually not a loan, but a monetization of your assets

- Assets financed in you line of credit are typically receivables and inventory and equipment, but can also include real state, your ' rolling stock ' etc

- Asset based business line of credit are getting more popular everyday they are the bank alternative

- Who uses ABL facilities? Glad you asked -! Start ups, some of the largest corporations in Canada, high growth companies, public firms, private companies, and companies in SPECIAL LOANS at their bank, companies in turnaround mode. Bottom line - we can’t think of a firm that isn’t eligible in some manner

- Key advantages of the ABL business credit line include ability to borrow much more - we often see 100% increases in borrowing power. It works if you have business assets and don’t want to, or can’t add long term equity capital or debt

- Reporting on your business credit facility is more stringent - so you need to be able to prepare ongoing reports on your receivables, payables, inventories, and monthly financial stats, etc. If you can't do that already we suggest you have some other problems

- Asset based lending typically monetizes receivables at 90%, inventory between 25-75%, and current values of your equipment and other assets - Expect an appraisal when it comes to other assets

That's our business ' speed dating' recap on the ABL business line of credit. It's up to you, the business owner or financial manager to now ' pick your partner ' when it comes to choosing the right type of business line of credit for your firm.

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor, who can assist you with your business credit needs,





Stan Prokop - founder of 7 Park Avenue Financial –

CANADIAN BUSINESS FINANCING

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :

CANADIAN ASSET BASED BUSINESS CREDIT LINES





7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653
Email = sprokop@7parkavenuefinancial.com



















Stan Prokop