Asset Based Finance Solutions In Canada: Financing Via Business Loans That Make Sense !

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Asset Based Lending Canada

Asset based lenders have the ability to remove many of the challenges faced by business owners and financial mgrs. in Canada. We're examining the abl loan as a method to fund operations and growth.


Most top experts in Canadian business financing consider asset based lending a different form of funding your company - the other end of the spectrum being traditional chartered bank financing.

How is traditional bank financing different from an ABL Loan ? Simply because the entire focus is pretty well on specific assets that essentially give more borrowing power against 4 asset categories, either one of those or in combination.

Asset Categories

Accounts Receivable

Inventory

Fixed assets/equipment ( Must be assets that your firm owns outright )

Real estate - if applicable

Purchase Order financing can also be considered a subset of solutions offered via an ABL lending company in Canada.


Depending on what business and industry your firm is in you're either top heavy in one or more of those asset categories, or perhaps not at all. Service based companies traditionally utilize a/r and contract financing via the asset finance offering.


What then is the key benefit to asset based finance business loans and financing solutions? To put it simply:


FASTER ACCESS TO CASH!


Traditional financing forces you to address key issues such as what your balance sheet looks like, as well as focusing on historical, present, and future cash flow/projections. Your company may not necessarily have what it takes there, or in some cases, you're newer in business or even a start up. We point out that it always helps if you have a business plan and cash flow readily prepared.


A lot of companies that utilize asset based ' ABL ' lending solutions in Canada have a lot of seasonality or ' bulges' in their business cash flow needs. The ability to therefore rely on your ongoing asset base really helps smooth out those bulges!


While personal guarantees are almost always an issue for the business owner we can say that this type of guarantee, considered ' valuable ' or a ' must ' in banking circles has much smaller or no emphasis on asset based lending. Additionally, true asset based finance deals are pure asset monetization.


1. No debt on the balance sheet

2. There is no equity give up - Growing companies can maximize shareholder return without giving up equity when it is most valuable


We do need to mention though that while some consider ABL cash flow solutions as their ' holy grail ' in business cash flow financing you must be able to properly report on assets or be willing to go thru some form of appraisal process when it comes to adding inventories, fixed assets, or real estate.



ABL lenders, mostly commercial non bank lenders, rely heavily on the true marketability and value of your company asset base in the asset categories we have mentioned

ABL asset finance can also be used as an integral part of the financing to purchase a business when you or your company has targeted an acquisition that requires specific financing outside traditional norms


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

Click here for more info on 7 Park Avenue Financial Business Financing Success

7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
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

Types Of Business Credit Lines In Canada

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What Is A Business Credit Line ? What Type Is Best For My Company

Business Loans and Lines Of Credit - Revolving Line Of Credit

Business credit lines in Canada can come from different sources, 2 major sources in fact . Both of these sources are different on how they deliver your cash flow needs, their cost, and how they work on a day to day basis as you run and grow your company in good times, and less than good times!

Understanding those issues helps the business owner his/her financial manager to plot a ' key to success' strategy that helps ensure business growth and survival.

How To Get A Business Line Of Credit In Canada

A true business line of credit is offered by our Canadian chartered banks as well as what are known as 'nonbank' commercial lenders. These non bank lenders, often called asset-based lenders ( A B L ) operate outside banking regulations and are privately owned . Both solutions offer revolving facilities, except that the asset-based lines of credit are more focused on the actual assets in your business.

It is important to understand that typically your revolving line of credit is ultimately tied to your sales. As you sell your products and services you generate collectible receivables ( hopefully ), as well as turning inventory if your company sells a product vs. a service. Typical bank facilities focus on account receivable and sometimes have an inventory component tied to the borrowing formula. ( That formula by the way is known as a ' borrowing base ', which is an important concept to understand in business credit lines . Out of this borrowing base is what you will draw down on an ongoing basis your firms cash flow needs.

Asset based lenders focus and lend more against your assets, and in turn they tend to monitor your a/r and inventories more closely - as those two assets are typically the prime collateral for your asset-based loan.



KEY POINT - Asset based lines of credit, the nonbank type of facility, also can easily put your owned fixed assets into the borrowing formula. This total focus on ' assets ' great increases your borrowing power when combined with a/r and inventories.

Bank Line Of Credit Vs. Asset Based Credit Lines

While banks do require some ongoing reporting on your assets, typically monthly, sometimes only annually, they instead focus substantially on your operating characteristics of profit, cash flow, debt load, and character and personal collateral of owners.

Banks do finance inventories but are often challenged by the ability to both understand and monitor inventories - while asset lenders have developed experience in numerous industries and inventory types. Borrowing conditions for inventories depend heavily on the type of inventory and it's overall liquidation ability - as an example perishable foods are often hard to finance.

Business Credit Line Rates & Cost

What's my rate? That's the ongoing battle cry of business owners and financial mgrs when they consider line of credit needs and benchmark the offerings of their bank or asset-based lender. While your borrowing capacity can often double or triple in asset-based revolving facilities they do come at a higher cost.

Conventional bank financing is cheaper, but more challenging when it comes to the amount of approval, or whether your firm is bank financeable at all ! An interesting note is that in recent times, due in part to general competitiveness and the low rate environment asset loans have in fact dropped in overall cost.


Startup, fast-growing, as well as financially challenged companies are prime candidates for asset based lines of credit. They have limited or challenged cash flow generation performance, but require rapid access to cash flow and working capital. The conservative financial position as demanded by banks focuses on ratios, cash flow, debt to equity relationships, and owner guarantees.


It's important to note that many, shall we call them ' subsets’, of asset based loans can help deliver liquidity to your business.

Other Working Capital / Cash Flow Alternatives

Factoring/Confidential A/R financing

Inventory loans

Bridge loans

Sale-leaseback strategies

Purchase Order Financing

SR&ED Cash flow loans

Short Term Working Capital Loans ( Note - while these short term working capital loans are popular and positioned as business revolving credit lines they are in fact just short term loans based on 15-20% of your sales volume and are tied to personal credit history of the owner/owners


If you're focused on ' keys to success ' in your working capital and cash flow needs seek out a trusted, credible and experienced Canadian business financing advisor with a track record of business finance success , who can assist you with your business finance needs.

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What Is An Asset Based Lending Facility ?

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Commercial Asset Based Lending Works - Here's Why

Commercial asset based lending in Canada is basically a healthy alternative to traditional bank financing solutions that business owners and their financial mgrs are looking for to run and grow their companies . Most business people agree there is nothing better than healthy competition and asset based lending solutions, specifically business line of credit loans are a direct competitor to Canadian chartered bank facilities.


Dramatic changes in Canadian business financing have happened in the last ten years or so relative to the 2008-2009 worldwide recession . A number of ' new ' ways to finance your business make commercial borrowing facilities more accessible than every . Commercial lenders are offering viable solutions to working capital, debt, and cash flow needs sought by the Canadian business borrower.

These independent commercial finance companies, both 100% Canadian as well as some U.S. players doing business in Canada compete directly with traditional finance sources to offer a wide array of financing solutions for your SME COMMERCIAL FINANCE needs. Even internet solutions now empower the Canadian business borrower - those searching for ' abl asset based line of credit ' via an internet search find numerous offerings that can be specifically tailored to their needs.

Also on the rise are short term working capital loans - these loans arose out of the cash flow loans made to predominantly retailers and are now well suited to general business borrowing in pretty well every industry.

No secret that Canadian chartered banks often command the first train of thought when it comes to business finance for a revolving line of credit . Asset based business lending for lines of credit gains more traction everyday.


So let’s provide some clarity around ABL finance in Canada. If there is one differentiator of the product it’s simply that the total focus of the facility revolves around one word, ' assets '. Non bank asset based loans are more flexible than a traditional bank offering, and at a time when more is better they leverage your assets significantly greater than a bank facility. Remember that an ABL loan is typically from an unregulated lender; they have different sources of capital and don’t require key elements that are necessary in the Canadian chartered bank system.

Asset based business credit lines are not to be viewed as 'term loans ; They are simply a ' monetization ' of the assets you have in your business already - specifically receivables, inventory, equipment, and , if applicable, real estate.

While our banks focus on ratios, covenants, outside collateral, personal guarantees, etc the Asset Based Lender focuses predominantly on .. you guessed it .. Assets !


So why the sudden and growing popularity in asset based lending in Canada. We think the answer to that is the fact that it covers every type of industry, retail, manufacturing, service, etc. But more importantly it also addresses your company life cycle. Even more important is these credit facilities tend to grow almost automatically with your sales levels, allowing firms to capitalize on new markets, larger orders, new major customers, etc.


An asset based ABL finance facility can be achieved for a start up, an established growing firm, and yes, those firms that have suffered severe financial challenges. In the ' old days' (yes we remember them) it was not uncommon for forms of asst based lending to be viewed as a ' last resort' type of financing. Fast forward to today and some of the largest corporations in the world, in Canada included; utilize this financing as opposed to a traditional bank facility. So something must be working!

In order to assess your firms suitability for this type of line of credit businesses should be prepared to offer up to date financial statements , and proper agings of receivables, inventory and equipment lists if appropriate . Note - only unencumbered fixed assets may be considered as a part of your credit facility . Many firms of course have liens on some fixed assets they are leasing or are borrowing against .



Speak to a trusted, credible and experienced Canadian business financing advisor with a track record of business finance success to better understand how asset based loans can monetize your firm’s assets into an ABL business credit line facility that provides you with maximum working capital and asset leverage.




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

What Are Sources Of Business Financing In Canada

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How To Secure Business Financing Via Traditional & Alternative Solutions

Business financing often becomes a ' smackdown' when it comes to both traditional and alternative financing sources available to Canadian business owners. What type of business finance solution will work best for your firm if in fact it's somewhat of a contest for your cash flow and debt needs?

Two major competitors for your business credit lines needs are Asset Based Lending, known as ' ABL ' , as well of course, as traditional Canadian chartered bank solutions.

Although banks can provide virtually unlimited business credit there are numerous requirements that many firms cannot meet when it comes to borrowing criteria . Enter ABL ( asset based lending ) which is enjoyed incredible popularity when it comes to funding sources for business.
The business owner / financial mgr of a company needs to ensure they understand the benefits and options under both financing solutions.

Asset based lending really took off in Canada after the 2008-2009 recession.

When that economic implosion of happened thousands of Canadian businesses started to review their financing options with either their banks or on their own accord.

At that time it was certainly not unusual for businesses to have credit lines reduced or pulled, or , even worse, having a firm being put into a ' special loan ' category, which we can assure you is not a ' special ' feeling!

So why do asset based credit lines flourish when other forms of finance, often traditional in nature, just don't work .

ABL financing takes a 'holistic' approach and takes all of your business assets and sales growth into account. Risk management at non bank commercial lenders has the underwriter looking at your firm in a whole different matter .

Naturally banks focus on key issues in lending that focus around their own mandate based on capital ratios, borrowing bases , etc . They then adjust their risk accordingly. That means ratios, covenants, the need for outside collateral,personal guarantees,etc.

Asset based lending takes a different approach, focusing on your assets and sales and liquidity needs in those two areas . The goal is achieve a maximum liquidity/borrowing power via a business line of credit that makes sense for your business.

Abl costs more , but will almost always achieve a higher level of financing than your company enjoyed previously . By the way in some cases, albeit fewer in nature, asset finance might actually cost less!

Assets that are margined in your credit line include receivables, inventory, equipment that is owned, and , where applicable, real estate. All of those assets are in effect thrown together to get you a business line of credit that makes sense.

Snapshots are taken typically monthly on your sales and assets to ensure your borrowing power makes sense.

It is therefore no surprise that thousands of Canadian firms are gravitating to asset based loan financing for their lines of credit. Abl lenders take more risk and that risk and return issue they face translates into more liquidity for your company.

So who in fact wins the batter for your business credit line facility ? Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who has a track record of business finance success putting yourself in a better position to determine which business financing solution works best for you when it comes to a business line of credit.



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

Is Asset Based Lending Your Best Route To Business Financing Solutions ?

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ABL Is Your Back To Basics Business Finance & Cash Flow Conundrum Solver !

Business financing requirements for Canadian business often require very timely solutions .

Alternative finance solutions for your business are more and more becoming the new norm for funding companies in Canada. They get our clients to the ' goal line ' in a more timely manner when it comes to some of the timelines imposed on firms applying for traditional bank credit . Asset based lending , commonly called ' ABL ' solutions provide a solid funding alternative for your cash flow and working capital needs.

Clients of 7 Park Avenue Financial will often ask what is the key requirement for asset based credit lines, as well as the other funding solutions within the ABL world. That key requirement ? Assets ! Those assets can come in the form of receivables, inventory, equipment and fixed assets, company real estate, and in a round about way orders and contracts - those latter two being valuable but not on the balance sheet of course.

Those assets are collateralized or ' cash flowed ' in asset based borrowing facilities. A revolving credit facility, similar to a business bank line of credit is the common solution for many of our clients.

Cost always becomes a factor when it comes to ABL financing - it is more expensive than traditional bank rates, but the harsh reality is that many companies can't meet the key criteria required by banks such as solid consistent profits, clean balance sheets, and outside collateral and personal guarantees that available to secure bank financing.

It's safe to say though that most forms of business financing, however costly, are cheaper than giving up owner equity in your firm, especially for a firm that is growing and has promise of great value and success.

Although we stated that ABL typically costs more than bank finance solutions larger higher quality deals can actually compete with those bank rates, while at the same time providing much more liquidity !

So how does the asset based lender value and monetize those assets? Receivables are typically financed at 90% of the a/r base ; inventory margins vary depending on the nature and marketability of inventory and can range anywhere from 30-70% ; and finally equipment and real estate are typically appraised at their market or liquidation values. The bottom line? More borrowing power!

So what are some of the key benefits of asset based lending solutions? They include, as we mentioned, quicker approval . That is because the main focus of he ABL lender isn't all those financial covenants and ratios imposed by banks. For ABL it's all about .. you guessed it .. Assets!


Another point is flexibility. We see this lot. And it all comes down to the fact that there is a good chance that your business is different from many other businesses and in a different type of industry. We quite often see that a tremendous amount of flexibility can be applied, via ABL asset based lending, to your particular circumstances. Some of those circumstances might be seasonality of your revenues and cash flows, etc.

Asset finance has matured significantly in Canada. In historical terms we could say it's relatively new , but it has exploded onto the business landscape due to choices, costs, etc. Many Canadian banks have explored and are exploring these type of solutions . We keep reading in the Globe & Mail or Financial Post about the abundance of capital in the markets, and ABL lending is one of those reasons .
That's a good thing for Canadian business borrowers.

Asset finance solutions are typically revolving facilities and rarely add debt to the balance sheet . That's a good thing !

Speak to a trusted, credible and experienced Canadian business financing advisor who has a track record of success on a financing alternatives achievable for your firm, no matter what your particular circumstances are.



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

What Is The Best Business Credit Line ?

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How To Get A Business Line Of Credit

Business line of credit solutions are often a key talking point when it comes to talking about business financing solutions for clients at 7 Park Avenue Financial. A talking point is, of course, just a ' succinct statement designed to be persuasive '. Let us take a look then at business credit line solutions , with a main focus on ABL
, otherwise known as asset based lending.



The problem with the term asset based lending
is that is is typically a common catch all for different times of financing that are cash flow and debt related - one example might be receivable financing, others might consider sale leasebacks, etc, etc,



In our discussion here we are referring to what we could call a ' comprehensive' business credit line solution - its a finance facility that rolls up you receivables, inventory, equipment, and yes, if applicable , real estate - all into one borrowing facility that your company can draw down on .


Although low interest rates are a key attraction of Canadian chartered bank financing the harsh reality is that thousands of firms simply down qualify for those rates based on the stricter borrowing criteria that banks put in place in order for your firm to achieve those lower borrowing rates . Spoiler alert - ABL business credit lines cost more, but they provide more liquidity and access to capital.


Whether your firm is start up, early stage, or a mid market or even larger corporation you typically require access to credit lines.

A lot of the asset based lending available in Canada today is based on the U.S. model of ABL, which is a huge, and we mean really huge, part of American business borrowing. In Canada this borrowing is typically done by private commercial finance companies who are not regulated like our banks . They deliver a commercial financing product tailored to your business needs.

ABL credit lines also work if your firm is in the process of restructuring - it's at those times that your require the most access to financing, which at that point in your firms history typically is not available from banks . As we noted, ABL increases access to funding based on your total asset structure! The ' A ' in ABL is assets and that's all you need for an asset based business credit facility.

So what are the key differences in when comparing asset finance facilities to bank financing, typically it's looking at alternative financing vs. traditional financing?

For banks it's all about the trifecta - profits, cash flow, and a clean balance sheet - and you pretty well need all those 3 to be in place to access those low bank rates.

ABL focuses on flexibility - little or no emphasis is place on ratios, covenants, outside collateral, spousal and owner guarantees, etc. Those items may be ' talking points' but rarely total deal breakers.

One key aspect of asset based revolving credit lines is that they can facilitate peaks and bulges in borrowing needs when it comes to sales . The temporary spikes that come with seasonality, large new contracts or purchase orders can almost always be accomodated when working capital is down to 'crunch time'. Traditional bank facilities are often very difficult to arrange in a short period of time.

Is the asset based credit line the best finance method to achieve cash flow and working capital nirvana ?! If you can't access some or all of the bank financing you need it just might well be.


Speak to a trusted, credible and experienced Canadian business financing advisor with a track record of business financing success on what you need to know about this innovative method of business finance in Canada.

Bottom line ? Understand the requirements and take advantage of the benefits!






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

How To Access A Business Line Of Credit

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Alternatives to Traditional Bank Revolving Credit Lines - Enter ABL Alternative Finance Solutions

Business Line Of Credit . Will that be small, medium or large? We're not talking about a coffee cup size... we're referring to the fact that no matter what your size of business your access to a business line of credit is the lifeblood of your company . That's why an ABL revolver (ABL = asset based line of credit) is potentially the solution to turbo charge your working capital and cash flow. Let's examine how.


Clients seem to always wrestle with the fact that they don't really understand the differences between this type of business financing and banking as opposed to a ‘regular’ operating facility with the bank. The differences could not be more dramatic. While a bank facility (by the way, we are all for them also, when they work! ) focuses significantly on your balance sheet ratios and over all profitability , etc the ABL revolver solution hones in on one issue only - your assets and their overall quality and size . It is on that quality and size that the ABL business line of credit is structured.

Borrowing power is what business lines of credit are of course about. When you utilize the
ABL approach you in effect leverage all the power of the assets, which certainly isn’t like what we like to call ' traditional bank borrowing '.

So, why would a business such as yours want to unlock that borrowing power? The reality is there are some very recurring needs for firms which choose this type of business financing. First of all they either can’t get or can’t get enough working capital borrowing power against their inventory, receivables and equipment. Secondly, all sorts of other problems, challenges, and yes opportunities can e overcome with an asset based line of credit.

Many examples exist of firms who have doubled and in some cases tripled their business financing access via this type of finance. The answer is simple - it’s based on asset size, not ratios and covenants and external collateral.

Those include firms which have large seasonality issues, companies who which to merge with or acquire a competitor on an asset financing basis, and, most commonly, firms that view themselves in turnaround or restructuring mode when it comes to where they are at in their life cycle - i.e. coming out of a challenging economic time or negative business event (operating losses, etc).

Did we just say ' operating losses ‘? Yes, the reality is that even firms who are experience operating losses and could otherwise not achieve maximum operating cash flow are excellent candidates for ABL financing. We should mention that the type of facility you get, the pricing on that facility, and how the facility works vary within ABL revolver financing depending on your overall transaction size and asset coverage .

We must never forget also that these type of facilities never bring debt to your balance sheet, you view them similarly as an operating line, in that you are just monetizing your assets for working capital and cash flow - the only difference is you've got tremendous flexibility around borrowing power - because you are borrowing against a base of receivables, inventory, unencumbered equipment, and in some cases real estate also.

In summary ABL revolver financing gives you a full service business financing, its cost effective, addresses almost every financing problem you have had related to cash flow, and is available in facilities from 250k to many millions of dollars .

It somewhat of a secret to many that some of Canada's largest corporations choose this type of financing over a traditional bank facility. Speak to a trusted, credible, and experienced Canadian business financing advisor on why ' ABL ' give you that ' turbo charge' boost in cash flow we've talked about.



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