Asset Based Lender Solutions: Journey To The Center Of Non-Bank Receivables Financing

The Reviews Are In : Asset Based Lending Is A Hit!

OVERVIEW – Information on asset based lender solutions in Canada. Receivables financing is a cornerstone of asset finance for cash flow and working capital needs in Canadian business finance

Receivables financing in Canada is in somewhat the crown jewel of the asset based lender. We're taking you to the center of non bank A/R financing. Let's dig gin.

Asset based lenders are almost always ' business to business ' type lenders for working capital and cash flow financing needs for almost every size of business - from startups to sizeable corporations. The financing that these firms provide allows your company to consider almost all options - that includes:

Growing your business

Expanding into new products/services and geographies

Engineering a turnaround

Refinancing

Companies that typically manage their A/R well are also more inclined to take advantages of supplier pricing/discounts and are viewed more positively by trade creditors. A solid receivable financing solution will allow your company to do that.

Why do thousands of businesses seek and utilized the services of an asset based lender that specializes in A/R solutions. One of the most common reasons is their company's inability to access traditional bank financing. Owners are typically reluctant or unable to access additional equity financing that might be used to bolster cash flow.

One key aspect of a non bank A/R financing solutions is the fact that a full facility will also include combining inventory and fixed assets into that same credit line!

These solutions typically do not compete with banks as they are taking on more and different assets in an entirely different manner when it comes to margin calculations and borrowing limits. The asset based lender typically advances 90% of A/R as well as higher margins on both inventory and equipment which become part of that new borrowing facility.

Non bank lenders also have the reputation of being timelier on approval. It is critical to note that in almost all cases the typical asset based borrower has a goal to migrate back to traditional banking.

While bank credit lines typically tend to have fixed credit lines and yearly renewals the true beauty of receivables finance from asset based lenders is the flexibility to grow the facility almost instantly as sales and working capital assets grow. Simply speaking these facilities fund growth!

What do asset based lenders look at when it comes to approving and setting up such facilities. Key issues include:

Cash flows within the business

The ability of the company to report on financial performance - i.e. monthly financial and aged schedules of A/R and a/p

Government sources deductions being paid (Note - in numerous cases asset based lenders will construct financing to handle and payout CRA arrears)

Profitability (or the road to profitability)

Asset lenders put appropriate controls in place to make sure credit facilities are properly controlled.

Bottom line, its official - Asset Based Lending is a hit with companies of all size and financial position in Canada. Seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can help you put working capital/cash flow solutions in place that match your firms borrowing needs.



Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - 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

An Asset Based Lender Solution To Business Finance : Why ABL Credit Works

Can Asset Based Lending Solve Your Canadian business financing challenges?

OVERVIEW – Information on financing solutions offered by the asset based lender in Canada. ABL Credit for business finance needs is a solid alternative to many firms who can’t access all the bank credit they need to run or grow their business

Business finance in Canada always comes down to ' choices' for both owners & financial managers. New, emerging, or middle market companies often rely on the ' asset based lender’ and ' ABL Credit ' for financing needs. What are these solutions and who exactly offers them? Let's dig in.

As we've mentioned in the past it's all about understanding the terms ' assets ' and ' collateral '. While the assets reside on the balance sheet in paper form and description it’s really the true value of collateral that drives asset based lending solutions. These financings come with rates that are higher because they compensate for a bit (or a lot) more risks that commercial lenders take who are not banks.

(SPOILER ALERT - Banks take on less risk)






There is a wide range of financial offers offered by ABL Credit. ABL is of course the acronym for Asset based lending. Some of the key offerings in this finance industry segment include:

A/R Financing (Commonly called factoring)

Inventory Finance

Business Credit Lines based on your assets of inventory, receivables and fixed assets

P O Financing

Sale Leasebacks / Equipment Financing

While these types of loans typically run from 250k on the small end to multi millions in size smaller deals under that lower threshold are available if you are working with the right firm. Your financials , sometimes , but not always, complimented with a business plan, executive summary and cash flow forecast will always be a good start in securing your financing.

Why do companies gravitate to the asset based lender? Often it’s to put a short term / intermediate term cash flow fix in place. It can be a short term bulge in your business, or fixing the problem of taking on large new contracts or business. In some cases asset loans are a great way to acquire a company or competitor.

What are the key features in the decision making process for asset lenders for either term or operating credit facilities? They include:

Overall cash flow situation

Current financing arrangements

The amount and type of debt you have on your books

The general risk level that comes with your company or industry

Is the ABL CREDIT solution your ' fix ' for business finance needs? It just might be - consider seeking out and speaking to a trusted, credible and experienced Canadian business financing advisor who can assist you in solving liquidity needs.


Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - 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 Financing - Does Your Firm Have What It Takes For An ABL Facility With An Asset Based Lender?

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Information on a business line of credit known as an ABL facility via an asset based lender. This type of asset financing can double your access to business credit and working capital

You're on the hunt, and the prey is business financing under an asset financing scenario you have heard so much about. Let's examine what an ABL facility is, who is the asset based lender that offers this financing, and, oh yes, do you qualify?

To say that business credit financing is top of mind these days with Canadian business owners and financial managers is clearly an understatement. With the economic clouds clearing on the horizon after the 2008-2009 business credit meltdown business owners are looking for growth financing.

And the reality is that the type of operating facilities that you are looking for are getting tougher to secure from Canada's major chartered banks. We are of course referring in general to firms that have some sort of challenge, because medium sized and large Canadian firms with great balance sheets, profits, and solid cash flows can access great credit terms from the banks.

Unfortunately that isn't the client profile we're talking to everyday - as owners we meet have challenges such as inability to secure the operating cash they need, the requirement to acquire additional assets, or even a full acquisition of a competitor. And that economic turbulence we mentioned earlier usually means that many firms are coming out of a turnaround type environment and are slowly getting their financials back in order. Therefore the ability to secure an ABL facility (abl = asset based lending) for inventory and receivables becomes the goal in asset financing.

So what is the real difference in asset financing under and abl facility compared to a bank line of credit, commonly called a ' revolver ' in business finance. The best way we explain it to clients is that the bank focus is on cash flow, the asset based lender focuses on assets. Big difference!

So, does your firm qualify for abl financing? In general, as we stated, any firm with assets of receivables, inventory, equipment and real estate qualifies. Where the challenge comes in is deterring the overall quality of those assets as well as the size of the facility. An ABL facility is generally available for any firm with over 250k in a combination of receivables, inventory, and equipment. In certain cases even tax credit receivables can be financed.

Where you as a business owner have to focus is the choice of a partner in this type of financing. If your facility requirements are in the millions of dollars and you have high quality business assets (i.e. collectible receivables, inventory that turns) you can access significantly more credit than under a normal bank facility - at rates commensurate with bank financing.

Small firms pay a premium for this type of facility, but when you consider you can access almost all the business credit you need under such a line of credit, coupled with the ability to grow profits and revenues and take on additional orders... well, we'll let you decide if that's worth a premium.

If you want to comfortably walk the business financing minefield in ABL and feel you aren't 100% conversant with the players, requirements, and pricing then consider seeking a trusted, credible and experienced Canadian business financing advisor in this area.

P.S. If you found your access to business credit has just doubled, don't say we didn't tell you!



Stan Prokop - founder of 7 Park Avenue Financial

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - has completed in excess of 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.



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

Fax = 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/5989784

Business Credit Line Rebirth Via An ABL Asset Based Lender

Is A Business Credit Line Your Brewing Problem ?

OVERVIEW – Information on an alternative business credit line in Canada . The ABL facility, as offered by the asset based lender provides high liquidity and can easily be compared to a Canadian chartered bank facility in terms of cost, more borrowing power, and reporting

The business credit line in Canada
has gone through a bit or transition over the last number of years - That transition comes via the Asset Based Lending (‘ ABL ' ) facility via the Asset Based lender . Let's examine why this ' rebirth ' of a traditional revolving credit facility (most commonly offered by banks) has taken Canada by somewhat of a storm. Let's dig in.

When it comes to spotting warning signs in a businesses financial situation many circumstance involves the business credit line. It quite simple really - your business either has no credit lines in place an needs working capital, or in some cases you have traditional bank financing but it cannot satisfy the needs for growth and operations . A final common scenario is the profile of firms that have had bank financing but for some reason are now self financing or , even worse, in ' special loans ' with an exit needed as quickly as possible in order to save the company .

When you're in a position to access Canadian chartered bank financing you're clearly part of the ' cash flow crowd'. ABL, the alternative borrowing scenario turns all that upside down - the total focus is on ... Assets. Almost always these are receivables, inventory, equipment, and real estate if that’s part of the mix.

That's the real trade off here - when you consider an asset based revolving facility you're no longer dependant in any big way on leverage, ratios, and covenants. Those almost always disappear in a true ABL facility.

The trade offs between bank financing and a non bank asset based line of credit are very clear. The extremes in focus between the two don't make the decision process all that difficult. Bank credit facilities are monitored much less , so while you can almost expect a major increase in borrowing power when it comes to an asset based lender the one thing you can also expect is more reporting requirements .

With respect to that increased borrowing power it's achieved simply through more generous margining on A/R and inventory. AR is typically 90% and inventory ranges from 25-75% - dependent on the liquidation value and turnover history of your firms inventory.

Also, for very large corporations the actual cost of an ABL credit line is equal to or even better than bank rates. However for the thousands of small to mid size borrowers the increased borrowing power that come with an asset based credit line will almost always mean higher borrowing costs.

Top experts in corporate finance are quickly realizing the true value of the asset based credit line. It is also used in a number of scenarios to facilitate purchase and takeover of a business.

Is the business credit line challenge ‘a brewing ' problem for your business? If you're looking for the know how, experience and knowledge of your cash flow needs seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can ensure proper financing is put in place to accommodate your needs.


Stan Prokop - 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 90 Million $ of financing for Canadian corporations . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN BUSINESS CREDIT LINE EXPERTISE


Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:
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 '

Stan Prokop

Can You Buy Your Competitor Via An Asset Based Lender ? Unique Acquisition Strategies!

Here’s A Great Asset Based Lending Strategy To Finance An Acquisition !

Information on how you can use an asset based lender to buy a competitor via a acquisition finance strategy .. that works!



Ever had the idea to buy a competitor? Even more so have you wondered how this acquisition could possibly be done? One method is to use the service of an asset based lender to complete such a deal.

Even more interesting ... we couldn’t help but catch an article in one of the two leading business dailies in Canada... it said... (To us it screamed!) ‘BUY A COMPANY FOR NO MONEY DOWN! ‘... and this was from one of Canada's leading investment advisors!

The concept here was simply all about ' assets ' and a formula derived from Ben Graham, who is acknowledged as being one of the most prudent and smartest investors ever. (Buffett is a student of Graham... so something there must be working!

The actual formula Graham used to derive this strategy was to take all the current assets of a company, deduct all liabilities, and get a number he called ' net working capital '. If you know a bit about your competitors financial statements you will know this formula is not always going to work ... but if it did... well you have got the makings of a deal!

There is of course one key assumption here which is that all the assets are worth what they say they are worth on the balance sheet. Naturally there has to be some factoring of what they are really worth but that new number can be financed by your asset based lender, allowing you potentially to complete a transaction .

In essence what you have done here is used a finance strategy to finance the collateral in the company.

There are of course many reasons you might wish to acquire a competitor - they include revenue growth, economies of scale, market domination, etc. In many cases you might be aware of a motivated seller, perhaps a firm who is in financial difficulty or who wishes to execute some sort of exit strategy for the owners.

In most cases an asset based lender will have to consider paying out the current lender, which well might be a Canadian chartered bank. Other issues that need to be addressed are the potential profitability of the new firm going forward. Issues that can also help you move the transaction forward are your ability to normalize earnings and assess need for further assets. Also a vendor take back is a great strategy at this time.

Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you to by or acquire a competitor via an asset based lender acquisition strategy.

7 PARK AVENUE FINANCIAL

CANADIAN ASSET BASED LENDING AND ACQUISITION FINANCING EXPERTISE


Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/asset_based_lender_buy_competitor_acquisition.html

Looking For Asset Financing ? Does Your Firm Have What It Takes For A ABL Facility With An Asset Based Lender

You're on the hunt, and the prey is business financing under an asset financing scenario you have heard so much about. Let’s examine what an ABL facility is, who is the asset based lender that offers this financing, and, oh yes, do you qualify?

To say that business credit financing is top of mind these days with Canadian business owners and financial managers is clearly an understatement. With the economic clouds clearing on the horizon after the 2008-2009 business credit meltdown business owners are looking for growth financing.

And the reality is that the type of operating facilities that you are looking for are getting tougher to secure from Canada's major chartered banks. We are of course referring in general to firms that have some sort of challenge, because medium sized and large Canadian firms with great balance sheets, profits, and solid cash flows can access great credit terms from the banks.

Unfortunately that isn’t the client profile we're talking to everyday - as owners we meet have challenges such as inability to secure the operating cash they need, the requirement to acquire additional assets, or even a full acquisition of a competitor. And that economic turbulence we mentioned earlier usually means that many firms are coming out of a turnaround type environment and are slowly getting their financials back in order. Therefore the ability to secure an ABL facility (abl = asset based lending) for inventory and receivables becomes the goal in asset financing.

So what is the real difference in asset financing under and abl facility compared to a bank line of credit, commonly called a ' revolver ' in business finance. The best way we explain it to clients is that the bank focus is on cash flow, the asset based lender focuses on assets. Big difference!

So, does your firm qualify for abl financing? In general, as we stated, any firm with assets of receivables, inventory, equipment and real estate qualifies. Where the challenge comes in is deterring the overall quality of those assets as well as the size of the facility. An ABL facility is generally available for any firm with over 250k in a combination of receivables, inventory, and equipment. In certain cases even tax credit receivables can be financed.

Where you as a business owner have to focus is the choice of a partner in this type of financing. If your facility requirements are in the millions of dollars and you have high quality business assets (i.e. collectible receivables, inventory that turns) you can access significantly more credit than under a normal bank facility - at rates commensurate with bank financing.

Small firms pay a premium for this type of facility, but when you consider you can access almost all the business credit you need under such a line of credit, coupled with the ability to grow profits and revenues and take on additional orders... well , we'll let you decide if that’s worth a premium .

If you want to comfortably walk the business financing minefield in ABL and feel you aren't 100% conversant with the players, requirements, and pricing then consider seeking a trusted, credible and experienced Canadian business financing advisor in this area .

P.S. If you found your access to business credit has just doubled, don’t say we didn’t tell you!

--


Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/abl_facility_asset_based_lender_asset_financing.html

Eliminate Commercial Finance Pressures With An Asset Based Lender

Do commercial finance solutions seem out of reach - want a simple solution ?... go visit a Canadian chartered bank and get all the business credit you need! Unrealistic... maybe, maybe not, but one sure fire solution for your problems might be an asset based lender.

For many years now the non bank asset based lenders have been working with firms such as yours on credit facilities that fit the real world need of your company when it comes to inventory, receivables, equipment and real estate.

Canadian business owners and financial managers are probably asking themselves why they haven’t heard of this before - we'll hit you with another shocker, some of the Canadian banks even have internal divisions of asset based lenders that compete with their regular commercial banking business!

Anyway, the bottom line is that this Canadian business financing solution might be your ultimate cash flow and working capital solution.

For the uninformed asset based lending is essentially a revolving line of credit which provides you with working capital, cash flow to cover your operating expenses and growth needs. Why is it different then from a typical bank type operating loan? Simply because there is only one focus, the assets. And because the asset based lender is a specialist in commercial finance and the value of your assets you ability to draw on those assets intensifies greatly - in many cases you will obtain 50-100% more leverage on your current assets than you ever have before .

Again, why is this so different - its because the focus is on your personal credit, your company's current or past challenges... its soley on , you guessed it ..' the assets'!

In certain cases even a purchase order financing type facility can be put in place, and more often than not the asset based lender will accommodate what we term as ' bulges' or unusual temporary needs of your business based on seasonal cash flow, large new orders or contracts, etc .

As a business owner we think you can see that the total focus now seems to be on your future sales ability and the overall bench strength of your assets. It certainly is not untypical to receive 90% financing on receivables and 50% or often more on your inventory as ongoing advances for your cash flow needs. We also tell clients that unencumbered equipment can be factored into the facility also, so you in effect have a fixed asset that provides you with working capital. That’s creative financing!

Clients always asked what the approval criteria are - the truth is that the criteria that an asset based lender requires are significantly less demanding than those imposed by bank , the latter focusing on rations, covenants, external collateral, strength of persona guarantees, and on it goes .

Commercial finance made easy is a great by line for an asset based line of credit. After a standard business financing application and submission of back up date which would include aged receivalble, inventory listing, equipment list, recent financial statements, etc you would typically receive an expression of interest. After initial due diligence on your overall asset size and quality typical security documentation and registration takes a couple of weeks.

Speak to a trusted, credible, and experience Canadian business financing advisor who can provide you with clarity on cost, process, and most importantly, the benefits of an asset based line of credit or working capital facility.
--
Stan Prokop - founder of 7 Park Avenue Financial - http://www.7parkavenuefinancial.com
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 6 years - has completed in excess of 45 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :
http://www.7parkavenuefinancial.com/commercial_finance_asset_based_lender.html