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

What Type Of Receivable Financing & Working Capital Solution Works Best For Your Firm?

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Why Take Chances With The Wrong Type Of Cash Flow Financing ?

Cash flow enabling is of course the top priority for every business owner and his or her financial manager. More often than not firms that search for asset based loans such as factoring or invoice financing are looking for a short or intermediate solution - the hard reality being that traditional financing from Canadian banks may not be available.

In some cases though asset based financing solutions can work in the long term also - but newer businesses with less of a track record, or high growth / fast growth companies need access to working capital..now . In some cases investments might be being made in other aspects of the business, perhaps r &d, or acquiring capital assets . ( Note - SR&ED Financing and Equipment Leasing also can alleviate spend in these two areas )

But inevitably it will come back to short term daily financing needs requiring a working capital solution . Companies with proven cash flows and historical financial success can of course access term loans in the working capital / mezzanine finance area.

When you are examining asset based financing, and a/r factoring specifically . These solutions allow business owners to raise cash quickly to capitalize on short term opportunities, for example new clients, large contracts, foreign sales , etc. It's no secret that traditional lending sources such as Canadian banks take a significant amount of time to complete .

Asset based financing such as factoring always costs more than the low bank interest rates - but the good news is rates in the asset finance area are the lowest they have ever been, and all indications point to more of the same! Also in the experience of our firm, 7 Park Avenue Financial the competition to secure your financing business is the strongest it has ever been.

Rates in the asset financing area are dependent on a couple of obvious factors, ie transaction size , quality of assets such as receivables or inventory, and other collateral in the firm such as equipment, etc. In some cases an appraisal, altho it might come with a modest cost can enhance your firms overall ability to get financed.

Having up to date an quality financials also is also key to successful and abundant asset financing . Your firms ability to bill, collect might seem simple and basic, but proof of adequate accounting and controls is key to loan approval .

Bottom line ? Your firm needs cash flow to run and grow the business. 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 business loan and cash flow needs.




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

Early Warning Signs You Need A Canadian ABL Asset Based Finance Facility Line Of Credit

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Asset Based Finance Companies Can Help With Business Credit Line Challenges

As a business owner or financial manager you want to be able to ensure that a business line of credit has the ability to assist your firm before, during and after serious financial challenges occur. That's where the ABL asset based finance facility comes in.

In a perfect world (we know it's not) you want to be able to detect financial challenges, understand why they happen, and then implement a solution to avoid them. Understanding the problem (or problems) allows you to make the difficult decisions to continue your business successfully.

So what kind of problems can in fact your business run into. From our experience some are obvious and others not so obvious. And more importantly is there one specific business strategy; in our case today the ABL asset based line of credit that can in fact help you execute the turnaround.

There are probably 5 major early warning signs that your firm might need an alternative financing solution via Asset Based Finance

So what are some of those early warning signals? They are as follows:

1. Too much short term debt

2. You're trapped in a vicious cash flow cycle

3. You've accumulated current assets that have little or no value (example: obsolete inventories, poor receivables)

4. Your investment in fixed assets has put a major strain on your liquidity

5. Your firm is trying to find itself as it struggles to makes sales projections without the proper assets and financing to back up that growth

So whether your company has purposely created some of these challenges or whether external market forces have the good news in fact is there is a solution, and the one we are recommending today is the ABL facility. It's a busines line of credit like no other.

The ABL business line of credit differs from a bank facility in that you have the ability to margin, at very solid levels your current and fixed assets, all in the form of a revolving business line of credit.

Typically the liquidity provided by this facility gives you access to much more cash flow and working capital, and at the same time isn't punishing your firm by forcing you to totally focus on meeting ratios, covenants, and even provide outside collateral.

That is to say the ABL revolver facility allows you to continue to operate, probably with much more liquidity in spit of your capital structure, your historical challenges or financial losses, etc.

In Canada ABL facilities are typically provided by non regulated commercial finance firms. The ultimate irony we've observed over the years is that the Canada's chartered banks themselves, recognizing limitations of traditional facilities, have themselves even ventured into this ' non- bank ' financing idea. Now that's business irony.

If you want a solid insight into some of the early warning signs that your current financing strategies arent working speak to a
trusted, credible and experienced Canadian business financing advisor about the possible solution to those upcoming or existing challenges.


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

Downside Of Canadian ABL Asset Based Finance ? P.S. There Is No Downside! Business Financing And Lending That Works

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Asset Based Lending Works



Information on ABL asset based finance. Explaining the perceived downside of lending via asset base lines of credit financing for Canadian firms

So, which is it? We're big proponents of ABL asset based finance in Canada. So once in awhile a client pops the question. What's the question? It's ' Is there any downside to asset based financing for a Canadian firm?" Fair enough. ABL lending seems to have only good things attached to it in terms of the benefits. So about that downside...

We often hear the term perception versus reality. In the mind of the perceiver the perception is of course reality.

The world of ABL financing in Canada is in some ways fairly new. It's used by wholesalers, distributors, retailers, and manufacturers as an alternative to the commonly known ' bank operating line of credit '. One guesses that to be able to ' pan ' something and express concerns about the downside that you have to know what you're talking about.

In simple terms ABL lending in the context we're talking about it is a revolving line of credit secured by the assets of your company. Those assets are most commonly A/R, inventories, and in some cases we can throw unencumbered fixed assets and real estate into the mix. Again, simply speaking you borrow on a daily basis against the total value of all those assets once the asset value is agreed upon between yourself and the ABL lender.

So, on to that perceived downside! Many business owners and financial managers make the assumption that their firm must have the same credit quality that Canadian chartered banks require - that being profits, clean balance sheets, owner guarantees, the necessity for outside collateral on occasion, etc.

So the perception is that the downside here is that approval for ABL asset based finance is challenging. That clearly is not the case, if your firm has assets that can be financed you are in fact the best candidate for asset based lending.

Pricing. That clearly is perceived by many clients as the downside to this newer method of financing Canadian business. So, again, perception, or reality?! The reality is as follows: larger asset based lines of credit; particularly those in excess of 3 Million dollars are priced ultra competitively with Canadian banks. In some cases they might be lower!

How's that for a perception breaker?! For facilities between 250k and the, say 3 Million range pricing is done based on credit quality. In general these facilities are in fact priced higher, but in fact become the only alternative for firms that can't access any form of traditional financing at all.

‘Our company is public ' says a CFO. So we assume we can't access ABL revolver facilities?' Nothing can be further from the truth, as our ABL financing solution serves both private and publicly controlled companies, either on the TSX or Venture exchange in Canada. Even subsidiaries of U.S. companies by the way could qualify for asset based lines of credit. And in fact we think shareholders of public companies would like the idea that asset based facilities tend to grow and provide ongoing capital as the firm grows.

Fees. That’s the other common complaint we occasionally here about asset based finance. Here's where we will give in a little bit to those naysayers, as yes, there are some miscellaneous fees associated with ABL lending. But those fees only are a bit larger when we're talking about those very large revolving facilities, and in that case the pricing and access to more credit and working capital tend to offset any cost such as an appraisal fee, commitment fee, etc.

Finally, time to get approved and closed. Clients perceive ABL financing, perhaps because it’s different, as taking long to close. If you have solid reporting, can talk intelligently about your business and are prepared to commit to a new lending relationship we don't think there is any more time involved versus a bank line of credit.

So, perceptions. Realities. You decide, but be open to accessing this new method of financing. Speak to a trusted credible and experienced Canadian business financing advisor for assistance in your reality check!







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

Stop Me If You've Heard This But Isn't Business Credit Challenging and What's Asset Based Finance?

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Information on how Canadian owners and business managers can utilize asset based finance for business credit that meets their ongoing needs. A new tool for financing your business in Canada

It is always surprising to us that asset based lending is still probably less than 5% of Canadian business credit while in the U.S. it accounts for hundreds of billions of dollars of ongoing business financing.

However the trend is reversing and new transaction are being completed everyday in this asset financing category. Canadian businesses who need financing in excess of 250k (the upper limit is almost unlimited) can benefit from this relatively new Canadian business financing strategy.

Clients always have questions as to what the financing actually is and, more importantly, how it works and does their firm qualify.

ABL is simply A business loan secured by collateral (assets). The line of credit, is secured by inventory, accounts receivable and/or other balance-sheet assets, and is non bank in nature.

Let's address the qualification issue first - the reality is that if your firm has business assets in receivables, inventory, equipment, and even real estate those assets can be monetized into a business line of credit that focuses on the asset, not the overall quality or condition of your balance sheet.

We are of course referring to Canadian chartered bank lines of credit that provide a similar and more often than not less expensive form of financing via revolving lines of credit. However most business owners know those facilities focus on balance sheet and income statement strength, ratios that must be met, and heavy emphasis on personal covenants and outside collateral. That is not asset based lending relative to what we are talking about!

Your asset based lending financing facility is secured by business assets. These facilities are typically available through private finance firms that are non-bank in nature. One of two of Canada's banks offer this type of financing outside their normal business banking, but qualifications and deal size are still somewhat challenging to meet in our opinion.

When you negotiate an A B L facility (that's the acronym the industry uses) you and the lender agree up front on the market value of your ongoing receivables, inventory, and unencumbered equipment. That collateral becomes the essence of your financing and drawdown capability.

So why is this all different from a bank? The answer is simply - banks have regulated formulaic methods of financing business - in fact many would agree that bank business credit got increasingly difficult to get since the 2008 worldwide debacle.

Finance firms offering asset based lending are not regulated in the same manner, do business in almost every industry in Canada, even those that are deemed ' out of favor 'and the management of these firms typically have years of experience in lending against receivables, inventory (yes, inventory!), with the additional enhancement of allowing you to monetize your credit facility by including some borrowing against your equipment for ongoing working capital and cash flow.

Speak to a trusted, credible and experienced business financing advisor in this specialized area and find out how a new financing facility can put you head and shoulders above your competition in overall financing strategy.


Stan Prokop - founder of 7 Park Avenue Financial –

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 13 years - Completed in excess of 100 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 & Contact Details :
http://www.7parkavenuefinancial.com


7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
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 '

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


Article Source: http://EzineArticles.com/expert/Stan_Prokop/432698

Article Source: http://EzineArticles.com/5125150

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

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Business Finance Challenges ? Now What ? Asset Based Finance Comes To The Rescue

OVERVIEW – Information on asset based finance solutions in the Canadian financing landscape. Do these business loans make search for your company ?

Asset based finance has the ability to remove many of the challenges faced by business owners and financial mgrs in Canada. Let's dig in.

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 bank financing. How is it different? Simply because the entire focus is pretty well on specific assets that essentially give you big time borrowing power against 4 asset categories , either one of those or in combination.

The asset categories?

A/R
Inventory
Fixed assets/equipt
Real estate

Depending on what business and industry your firm is in you're either top heavy in one or more of those categories, or perhaps not at all.

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.

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 in asset based lending . Additionally true asset based finance deals are pure asset monetization.

1. They bring no term debt to the balance sheet
2. There is no equity give up

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 to your credit line borrowing mix . From the commercial non bank lenders perspective they are relying heavily on the true marketability of your company asset base

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 cash flow and funding needs.


Stan Prokop - founder of 7 Park Avenue Financial –
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 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 & Contact Details :
http://www.7parkavenuefinancial.com


7 Park Avenue Financial

South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
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 '

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