Is ABL Lending And Banking the Fountain of Youth Of Business Financing ? Financing Via Asset Loan Lenders

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An Asset Based Financing Discovery!


Information on ABL lending in Canada . Why the lenders offering this type of asset based loan financing and banking might be the total solution for your business financing needs – the fountain of youth of business financing!




We're all familiar with the story - searching the jungles to discover what may not exist - a secret or dream that might deliver on wealth or happiness.

What does this possibly have to do with ABL lending and banking in Canada?! Our point is simply that something you think may not have existing in terms of an all encompassing business loan financing arrangement in fact might exist - you just didn’t know where to find it.

Let's look at the hard facts - in 2008 and 2009 the Canadian business financing market went ' conservative ' and boy is that an understatement. Business financing reduced, companies such as yours hunkered down and just tried to exist, let alone expand and grow. Canadian banks emerged as the superstars of the Global financial marketplace - they didn’t go under... they remained profitable, they just did a lot less for many Canadian businesses, and in hindsight it’s hard not to understand why.

Could it have gotten any worse -actually yes, borrowing rates rose, many firms disappeared, and, at the core of our subject here, active lenders exited the Canadian market.

So was it all gloom and doom. You can make the call on that one, but the good news is that one form of business financing, ABL (Asset Based Lending) banking and lending become more valuable and more popular... in a way it become out business fountain of youth.

With the increased flexibility of abl financing in Canada came the financing that your business needed to grow. Essentially this type of financing margins assets at higher value, because abl lenders understand the true value of the asset - and if they don’t understand it they will take the time to understand the value those assets. (You might get a bill for that, but it will be worth it, we can assure you!).

We may have glossed over the true meaning and definition of abl loan financing in Canada. Simply speaking it’s a very clear formula based on the ongoing liquidation values of your receivables, inventory, and equipment, and you borrow everyday against those values. It’s a concept that is very easy to understand for most Canadian firms - especially when benchmarked against Canadian commercial banking facilities for small and medium sized companies in Canada.

So what have we got against banks? Absolutely nothing, in fact Canadian bank reputation is stellar globally. However, if you cant get prime based borrowing and if you are unable to meet covenants and ratios required , or if you are too ' small ' for such a facility then guess what - the fountain of youth, the secret to business wealth and happiness just might be abl lending and banking facilities .

True asset based facilities aren't ' loans' per say, you are just monetizing assets to create on going cash flow.

Interested? If your firm is growing rapidly, highly leveraged and unable to meet bank covenants, or is you just have curse of growing too quickly (?!) speak to a trusted, credible and experienced Canadian business financing advisor on ABL banking in Canada .

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

Click here for 7 PARK AVENUE FINANCIAL

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

Inventory Loans and Purchase Order Financing

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Large Orders/Contracts ? Time To Check Out P O Financing & Inventory Loans

OVERVIEW – Information on inventory loans and purchase order financing solutions in Canada. These alternative financing solutions provide much needed capital to firms who are unable to achieve traditional financing in order to achieve sales growth

Inventory Loans in Canada and inventory and purchase order financing are subsets of a specialized industry that many refer to as asset based lending.

As sales and new order opportunities grow many Canadian business owners and financial mangers find that financing these to critical areas (inventory / p.o.’s) is increasingly become in a challenge. We advise clients that if these two critical areas of finance were a challenge in past times, that challenge is certainly magnified ten times over in the current global and Canadian business environment.

Are there specific solutions for inventory and purchase order financing in Canada. Yes there are, that’s the good news, but these are very limited and specialized in nature. We encourage all clients to speak to a trusted, credible, and experienced business financing advisor in this area who can provide guidance, assistance, and most importantly clarification on how this type of financing is achieved.


Inventory and purchase order financing in Canada extends beyond traditional Canadian chartered banks, who wrestle with the ability to truly understand a customer’s inventory component as a key part of working capital. (Working capital is derived from the continual conversion on inventory into accounts receivable).

Purchase order financing can be accomplished when your firm has the ability to generate sufficient orders from a major client, or clients, who are creditworthy. You must also be prepared to convince the inventory and p.o. finance firm that your company has the ability to fulfill customer orders successfully.

Starts ups in Canada can achieve inventory and p.o. financing, but be forewarned that management must have a strong background in the industry – you have to demonstrate you can perform and deliver.


The financing of inventory and purchase orders is achieved via a direct payment or payments that made to your suppliers for product you need in order to fulfill orders and contracts. For Canadian customers this more and more means that key suppliers may well is located in the U.S., and in many cases, China. This does not deter the inventory and p.o. lender, but you must be in a position to show that you have sufficient gross margin ( i.e. profit !) in your business model in order to be able to withstand the additional financing charges that come with inventory and p.o. finance .


Also, unbeknownst to many business owners, the inventory and p.o. finance firm likes to generally get paid when an invoice to your customer is generated by your company to your customer. This requires that you have banking or factoring facility in place to convert receivables into cash, in order that the inventory and p.o. lender can be a paid.
We encourage all customers to take some time and understand the total costs of such a facility – you need to remember that your firm will bear financing costs for , often, between 60-90 days from the time you get and order, obtain product from your supplier, manufacture and / or ship the order, and, last but not least, wait to get paid !

Inventory and P.o. financing can be expensive, but naturally the alternative to avoiding this type of financing means simply lost order, opportunities, customers, etc.

No Canadian firm chooses to become less competitive by virtue of not wanting to incur finance charges to convert new sales into profits.


Speak to an inventory and finance expert – understand the basis paper flow and the charges involved in this unique method of business financing. Turn inventory and purchase order and new contract challenges into increased revenue and profits to promote your competitive edge.

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

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

Business Credit & Finance Alternatives In Canada : The Asset Based Finance Choice

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Stop Me If You’ve Heard This But Isn't Business Credit Still Challenging and Why All The Excitement About Asset Based Financing ?

OVERVIEW – Information on business credit solutions in Canada. Finance strategies such as asset based financing and other alternatives can provide all the capital you need to run and grow your business

Business credit and financing alternatives are dramatically different in Canada when compared to the U.S. . Why is that? One reason is that asset based finance alternatives abound south of the border. So stop us if you’ve in fact heard this, but the good news is that the trend is reversing and new transactions are being completed everyday in this asset financing category. Let's dig in.

Canadian businesses who need financing in excess of 250k (the upper limit is almost unlimited) can benefit from this relatively new Canadian financing strategy.

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

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.

ABL, the acronym for asset based financed is simply loans secured by collateral (assets). In the case of a line of credit, it's secured by inventory, accounts receivable and/or other balance-sheet assets. Typically these loans are ' non bank ' in nature. You may not have heard that the banks actually have small divisions within the bank that also focus on asset based lending!

Lets 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 - Bottom line ? Less emphasis is placed on the overall quality or condition of your balance sheet and income statement. You got it - it's all about ... the assets!

No secret those Canadian chartered bank lines of credit provide a similar and more often than not less expensive form of financing via revolving lines of credit. 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 it comes to the banks most business owners know those facility offerings focus on balance sheet and income statement strength, ratios that must be met, and heavy emphasis on personal covenants and outside collateral. That's the key difference!


When you negotiate an A B L facility 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. No question things are getting better though with financial markets and business credit becoming a lot more accessible.

So about these ABL players. 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.

Seek out and 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.

P.S. Don’t forget also that several other key asset finance strategies can enhance your business financing success – they include SR&ED tax credit financing, Confidential A/R Financing , equipment loans, sale leasebacks, securitization – etc.



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

Business Credit Solutions In Canada : Exploring Asset Based Finance & Loans

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Time For Self Help In Asset Based Finance Business Credit : Right Loans For The Right Time

OVERVIEW – Information on asset based finance solutions in Canada . Business owners & financial mgrs should focus on business credit alternatives and loans and cash flow monetization strategies that make sense for their company

Asset based finance solutions for your business are a solid ' self help ' strategy that delivers on loans & business credit alternatives made to run and grow your company . ‘Self help ' seems to be more popular than ever ... so let's dig in.

Companies face a lot of challenges these days, and financing is certainly one of them. Let's not forget thought that those challenges might have a positive spin to them - sales growth opportunities, competitor acquisition, yet can also be daunting when it comes to threats against your very existence in today’s competitive environment.
How then can asset based finance aid your firm in allowing you to generate the working capital and cash flow you need to prosper and grow, let alone survive?

Asset based financed helps your firm in both good time and challenging times. It comes in a variety of forms - it is commonly in the industry itself referred to as ' ABL ' financing, and typically your firm would negotiate what is simply or commonly known as an asset based line of credit . The facility provides you with a revolving line of credit very similar to a chartered bank facility.


Non bank operating credit lines might also include a significant inventory financing component, and usually address what we could best call special needs or special situations re: turnarounds, growth, distress, etc.

The finance costs are higher, but asset finance solutions deliver! Pricing in Canada on asset based lines of credit is all over the map - We tell clients they can expect to pay anywhere near a point or two over prime up to an including 1.5-2% per month . What defines that huge difference in pricing? The answer is that that there are different what we will call ' tiers ' in ABL lending in Canada, and the overall size and deal quality of your firm will ultimately drive you to an asset based finance partner that more closely matches your needs and your overall ' risk profile '.


A perfect match? The best candidate for an asset based finance line of credit is a firm that is experiencing strong growth but can't attract the traditional capital that is used to finance receivables, inventory, plant and equipment, and even in some cases real estate.


Creativity is the benchmark for asset based financing. Essentially your balance sheet can be financed ' to the max ‘based upon your different asset components. In some cases even intellectual property or patents might be included in the overall financing, although that clearly is not the norm.


The reality is that asset based finance has somewhat changed the overall face of business financing in Canada and more and more firms , both large and small are gravitating to this form of finance . Deal sizes in Canada vary greatly - we do not encourage clients who have an under 250k/mo need to explore asset based finance because at a certain point the reporting, costs, etc done make sense for neither your firm or the ABL lender .

Other general asset based financing solutions include:

A/R financing

Inventory Loans

SR&ED Tax Credit Loans

Sale leasebacks on owned equipment/real estate



Is there any downside in asset based lending and an ABL working capital facility ask our clients? With relative certainty we can say any downside is significantly offset by upside. The facility gives you almost unlimited working capital, and margins assets that might otherwise not be finance able. And don’t forget, this type of facility does not add debt to your balance sheet, you are simply monetizing your hard and in some cases soft assets.
Speak to a trusted, credible and experienced advisor in asset based lending.


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

Asset Based Financing : A Guide To Unfiltered Cash Flow & Business Loan Solutions

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Operation Business Financing : Cash Flow & Asset Finance Solutions

OVERVIEW – Information on asset based financing solutions in Canada. Completing Your Search for the right business loan and cash flow solution

Asset based financing is one of the newer terms business owners and financial mgrs keep hearing about these days. Growth in this area has been driven by the tightening up of banks and traditional lenders in the SME COMMERCIAL FINANCE sector when it comes to commercial business financing needs for the right business loan and cash flow requirement.

When times get tough it's critical for owners/mgrs to look at all the alternatives available to their business as it relates to funding needs.
When times get tougher businesses of all size look to alternatives in their overall financing strategy. The acronym for this form of finance is known by industry insiders as ' ABL '.

So who exactly provides this financing? Typically it's non bank commercial finance companies who are independent and unregulated relative to banks and insurance companies - who no doubt find themselves extremely regulated - given they don't take deposits and can take on more risk . Firms in the industry are a combo of Canadian, U.S. and even international.

The challenge? Sourcing the right type of facility that meets your needs and ensuring you've got the right advice and expertise to take on those funding decisions.


The most fundamental definition of asset based financing in the context of our information here is simply the provision of working capital and cash flow for your receivables, inventories, and in many cases equipment and real estate if that is applicable.

The ability to successfully finance A/R and inventory and equipment makes or breaks a business when it comes to financial success. Doing that properly avoids ' cash flow problems' - both short term and long term.

As a result, financing sales via Receivables and inventory finance tends to dominate the majority of this type of financing. Many firms have problems with ' growth finance '- and most business folks quickly learn that sales and paper profits don't pay bills!

Asset based lines of credit generally is available to all medium and larger size companies in Canada - generally start ups and very small firms simply don't have the bench strength in assets to warrant this type of financing .

Asset based lending is simply maximizing the true value of your assets without the same focus that a bank might place on your overall financial statement quality. The facility generally has a limit, similar to a bank, but the reality is that as your assets grow your ABL facility will grow also?


When clients ask what it takes to qualify for such a facility we simply advise that your business must overall be viable, and quite often ABL facilities can be uniquely structured to your specific industry and business model.


The benefits of asset based credit facilities are very significant - they include:


Improved cash flow and greater working capital

Shorter approval times to get the facility set up

Reporting is more stringent in asset based lending because it focuses on the assets, but many clients tell us this additional reporting helps them understand their business better.

Higher financing costs in asset based lending bring a higher cost of borrowing, but a huge portion of these additional financing costs can be offset by better purchasing , taking advantage of supplier payment discounts, etc - In some unique cases we have seen the entire cost of an asset based financing facility being nicely absorbed by those two scenarios alone!

There are numerous ' subsets' of asset based financing that can quickly fix any cash flow or sales finance challenge. They include:

A/R Financing/Factoring/Confidential Receivable Finance

Inventory Loans

Permanent cash term loans

Merchant advances/Short Term Working Capital Loans

SR&ED bridge loans

Royalty based financing

Sale Leasebacks


In summary, clearly the overall benefit of an asset based financing or lending facility is simply access to greater cash flow and working capital. It is an alternative form of financing that quite frankly is developing into a traditional method of financing in Canada.



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

Asset Based Financing Loans In Canada : How To Achieve The Right Mix Of Business Credit

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Quick Question : What Exactly Is Asset Based Financing In Canada ? We’re Glad You Asked !

OVERVIEW – Information on asset based financing in Canada . The ability to achieve the proper type and mix of business credit and loans is key to financial success for growth in profits and sales

Asset based financing is a unique part of the business finance landscape in Canada. So much so we sometimes get the question: What is it! More importantly business owners and financial mgrs want to know how they can utilize these types of loans for cash flow and working capital purposes with the goal of funding their business. Let's dig in.

The reality is that asset based lending means different things to different business folks. The truth is that it's a part of the non traditional method of financing a business in Canada that might be temporary or in some cases more permanently challenging.

Although the owner.mgr might think their need is somewhat unique the reality is that financing needs typically revolve around sales growth or key balance sheet issues that need a fix. We've never missed the true irony around how fast growing or even explosive sales can become a huge financial and operational challenge, as many have experienced.

Fixed assets are often a key part of an asset based financing solution. The equipment your company either requires, or has already can be in a broad range of asset categories. Owners/financial mgrs are looking to acquire new or used equipment, or refinance existing assets. That ' refinancing ' can often be part of a ' sale leaseback ' which is one of the key categories in asset based lending. That strategy allows owners to ' free up ' equity in assets and harness that equity via new cash flow and working capital.


How does that sale leaseback strategy work? It's quite simple. Although business owners in many cases have a strong sense of what some of those assets are worth quite frankly that is not what counts. It all comes down usually to an appraisal being done on the equipment, and when the appraisal comes back a loan is made against the appraised value. Usually business owners can expect to receive a fairly high percentage of the liquidation value of the equipment, but this amount tends to be less than the fair market value of the asset .It is very important to understand that the asset has to be free and clear of any liens or charges. In cases where a small amount might be owing to another lender that amount can be paid out and bundled into the new loan transaction.

A key point in equipment refinancing is that the commercial lender will place a combination of emphasis on both the asset value as well as your firm’s ability to prove cash flow for repayment.

There is a huge difference in how an asset based lender looks at your asset and advances funds against it, versus a Canadian chartered bank.

There is technically no limit as to the amount that can be advanced against equipment, although most transaction we see in the marketplace is certainly less than 5M dollars.

In summary, asset based financing means different things to different people. One of the key context areas of this type of financing is equipment financing - yet numerous other key categories in asset based lending play a key part of solutions your firm might require and have access to .

They include:

A/R Financing solutions: Factoring, Confidential Receivable Finance

Inventory Loans

Tax Credit Financing (Primarily SR&ED)

Cash flow loans

Equipment Leasing

Royalty Financing

Bridge Loans


Whether your firm is growing quickly, has restructuring issues, or other unique situations you will benefit from seeking out and speaking to a trusted, credible and experienced Canadian business financing advisor with a track record of success.



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