Tweet

YOU ARE LOOKING FOR AN ASSET BASED LENDING AND A  BUSINESS CREDIT SOLUTION FOR YOUR COMPANY! 

You've arrived at the right address! Welcome to 7 Park Avenue Financial 

Let us help your firm just like our hundreds of other satisfied clients.

        Financing & Cash flow are the biggest issues facing businesses today

   UNAWARE OR DISSATISFIED WITH YOUR CURRENT BUSINESS FINANCING OPTIONS?

CALL NOW - DIRECT LINE - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs

EMAIL - sprokop@7parkavenuefinancial.com  

 

ASSET BASED LENDING IN CANADA - A BUSINESS GUIDE

 

 

Asset based lending.  The only business credit tool your firm will ever need?

 

 

"The lack of money is the root of all evil." - Mark Twain  

 

At 7 Park Avenue Financial we think Mr. Twain had it right -  It's challenging when a business doesn't have the resources it needs!

 

It's possible, and we've seen it work all the time. How could one type of business financing, i.e. asset-based lending, be the only business credit tool our firm will ever need? Let's dig in.

 

 

WHY CANADIAN BUSINESS IS TURNING TO ASSET-BASED LENDING FOR CANADIAN BUSINESS FINANCING SOLUTIONS 

 

Asset based lending solutions, also known as ' ABL ' are a type of financing that secures financing for a business using the ' assets ' of the business as collateral. This method of financing a business is popular with businesses who cannot access all the bank unsecured financing and who have sales and assets to collateralize. 

 

It is an increasingly popular method of accessing needed capital that is ' non-dilutive '; allowing business owners to retain their equity ownership while obtaining needed funding.

 

  

FROM INVENTORY FINANCING TO HARD ASSETS AND SALES- WHY ABL IS REVOLUTIONIZING CANADIAN BUSINESS FINANCE

 

  

Many of our clients want to discuss non-bank alternatives to cash flow and working capital challenges. In most cases, one type of Canadian business financing is not necessarily going to do the entire job you need - Except..! Except when it’s an Asset-based lending solution for business credit.

 

  

BEYOND BANKS - THE RISE OF ALTERNATIVE FINANCING / ASSET BASED FINANCING IN CANADA  

 

The 'ABL'  asset based loan is sort of the new kid on the block - it’s vastly popular in the U.S. and rapidly taking off in Canada, some say in fits and starts, which is partially due to the entry and departure of various firms that dominate the market.

 

ABL, which is our acronym for the solution can be tailored very specifically to be the total one-stop financing solution your firm needs.  The two greatest dynamics of ABL are that it offers your business more credit availability (isn’t that what it’s all about) and at the same time can be customized to your industry and specifically, your company!

 

 BRIDGING THE GAP - WHY ASSET BACKED LENDING CLOSES THE CANADIAN FINANCIAL DIVIDE FOR YOUR BUSINESS 

 

In its purest form is simply putting in a customized loan facility to allow you to draw daily against the value of your receivables, inventory, and in many cases fixed assets and real estate. It’s kind of the business version of a home equity line of credit we like to explain to clients!

  

  

THE BENEFIT OF ASSET BASED LENDING VERSUS TRADITIONAL LENDING IN CANADA    

 

But wait a minute, clients say, isn’t it exactly what a bank does? Well, yes, and absolutely no! Conceptually it is still the same, but the asset-based lending business credit facility focuses solely on the assets, so you will rarely if ever hear terms such as rations, covenants, outside collateral, personal guarantees, etc in the context of an ABL solution.

 

  

IS ABL RIGHT FOR YOUR BUSINESS?  

 

So is it the right financing tool for your firm - we'll let you be the judge of that. But if your firm required working capital and cash flow revolver in excess of 250k and you have some financial challenges you are immediately a candidate. Oh and by the way, you absolutely need to have receivables, inventory and fixed assets to get this type of facility, that’s really the main premise.

 

Typical candidates we work with all the time have margin pressures, they don’t have the business financing in place to support sales growth and new orders, or they have some real business and balance sheet issues revolving around restructuring, turning around, coming off a bad year, receiving a mega-contract, etc.

 

If that sounds like you we can assure you that you're a candidate for asset based lending business credit.

 

WHY ASSET BASED LENDING WORKS - COLLATERAL / CASH FLOW / BUSINESS CREDIT

 

  

The majority of businesses in Canada need business credit lines to fund day-to-day operations and meet the cash flow demands around their current liabilities and obligations. Using business assets as collateral to access that needed cash flow is what ABL lines of credit and business loans are all about.

 

Lenders place specific values on the business collateral, with balance sheet assets such as accounts receivable and inventory receiving a  high level of margin financing. Physical assets are sometimes subject to appraisal or valuation but can be a key component of the borrowing facility.  Interest rates and borrowing costs are generally higher in ABL lending but provide more access to business capital than unsecured loans.  

 

The benefits? Greater cash flow, no covenants or ratio maintenance, and the ability to take advantage of opportunities otherwise not available. Not having to consider dilutive equity financing allows business owners to retain ownership while accessing cash flows needed in the business based on a higher borrowing for the face value of any asset. In many situations financing needed is ' time sensitive ' and ABL solutions are more readily obtained compared to the timelines of obtaining financing from traditional financial institutions.

 

KEY TAKEAWAYS -

 

Asset based lending is the financing of a borrower's assets as collateral for lines of credit/term loans

Each asset category has an assigned amount of borrowing capacity - liquidity

Asset based non-bank credit lines are strong alternatives to bank credit and allow a company to cover short-term cash flow demands with greater credit availability by virtue of higher advance rates,  as well as the ability to access growth opportunities

 

  

CONCLUSION - UNLOCKING THE POWER OF ASSET BASED LENDING  

 

So is it the be-all and end-all financing solution? Only you as a Canadian business owner and financial manager can decide - Call 7 Park Avenue Financial,  a trusted credible and experienced business financing advisor to see if this type of business credit is for your firm and your business needs.

 

 

FAQ: FREQUENTLY ASKED QUESTIONS / PEOPLE ALSO ASK / MORE INFORMATION 

 

What is asset-based lending? How does it work in Canada?

 

Asset-based lending is a  business credit solution that allows a company to use the assets of the business as the sole collateral for securing financing. Typical assets financed by the ABL lender are working capital assets such as accounts receivable, inventories, and also fixed assets/property plant and equipment. This method of financing focuses on ' assets ' versus traditional banking solutions which place a high emphasis on balance sheet ratios, profitability, and cash flow generation - as well as often requiring personal guarantees and external collateral.

 

How does asset-based lending differ from traditional lending in Canada?

 

Traditional lending in  Canada focuses on business credit history and financial covenants and ratios in the regulatory environment of Canadian banking, while asset-based lending provides more flexible financing based solely on the sales and the company's assets of the business. ABL business credit solutions can also provide equipment financing and sale-leasebacks, as well as bridge loans on company-owned commercial real estate. This method of alternative financing focuses less on cash flow and traditional measures of creditworthiness and is a newer known form of financing in the Canadian lending market. The regulatory environment of Canadian banks precludes them from lending to many businesses that without ABL solutions would not be able to access credit.

 

What types of businesses in Canada can benefit from asset-based lending?

 

Asset-based lending provides more financing because the alternative lending market has created a more competitive landscape for business borrowers to access capital. Almost every industry has uses for asset-based lending institutions - Manufacturers, major retailers, and even some service industries are high users of asset backed lending.

 

Inventory financing is also best suited to an ABL solution- and any business experiencing seasonality or cyclicality can benefit from asset-backed financing/underwriting revolving around credit or term facilities. Understanding loan covenants is key to the benefits and use of ABL lending as little or no emphasis is placed on loan covenants.

 

 

What are the risks associated with asset-based lending in Canada?

 

Although asset-based lending solutions provide access to business credit and capital this method of financing comes at a higher cost/interest rate versus a bank unsecured loan - And as well borrowers must realize that the business lender can take possession  ( if a borrower defaults ) of a pledged asset or assets under a defaulted business loan within an asset based facility.

 

 

How can Canadian businesses find a reputable asset-based lender? 

 

In order to find reputable asset-based lending in  Canada business borrowers should perform a proper level of due diligence based our the lender's experience in their industry as well as the terms and conditions in lending agreements.  The two types of asset based loans offered by ABL asset based lenders include business lines of credit securing a/r, inventories and fixed assets, as well as term loans around specific assets such as commercial real estate owned by the business.

 

 

Click here for the business finance track record of 7 Park Avenue Financial

Your Guide To Asset Based Lending In Canada

Tweet

YOUR COMPANY IS LOOKING FOR  BUSINESS FINANCE SOLUTIONS!

You've arrived at the right address! Welcome to 7 Park Avenue Financial

Financing & Cash flow are the  biggest issues facing businesses today

ARE YOU UNAWARE OR   DISSATISFIED WITH YOUR CURRENT  BUSINESS  FINANCING OPTIONS?

 

CALL NOW - DIRECT LINE - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs

EMAIL - sprokop@7parkavenuefinancial.com

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

CASH STRAPPED? HOW ASSET-BASED FINANCING  SOLUTIONS CAN HELP YOUR BUSINESS GET BACK TO THRIVING!

 

WHAT IS ASSET BASED LENDING - ' ABL '

 

Asset-based lending in Canada is a Canadian business financing solution that provides Canadian business borrowers with a ' one-stop ' solution for their business credit needs line. 

 

BDC defines ABL very simply - ‘Asset-based lending occurs when a loan is granted primarily on the value of the assets the borrower offers as security “

 

Asset-backed lending, called " ABL' for short, it’s a business bank alternative to traditional unsecured loans from banks via the funding of your company's assets - creating greater borrowing capacity for day-to-day operating needs such as payroll expenses. Traditional operating facility advances offer much less borrowing capability in most cases. Let's dig in.

 

ABL solutions provide the borrower with financing based on the value of the assets of the business. Typically these assets include accounts receivables, inventories, fixed assets and commercial real estate if the latter is applicable.  Appraised values for fixed assets facility limits are the benefit of proper asset valuation for more growth financing funding via that greater credit availability.

 

These assets are pledged to secure financing and funding a business in this manner is a popular finance option for Canadian SME borrowers – as it provides access to capital and improves cash flow.

WHY CHOOSE  ASSET BASED LENDING SOLUTIONS

 
Although business borrowing costs are at all-time lows when it comes to cash flow financing, the main reason business owners/financial managers consider asset based credit lines is simply the flexibility and additional borrowing power they provide for specific assets in your business. The asset lender a welcome relief for firms that can't always access any or enough Canadian chartered bank financing via multiple forms of finance solutions such as term loans or business credit lines.

 
By the way, some of the most recognized and large firms also use ABL credit lines if only for the same flexibility they provide. They have made the choice to replace bank borrowing with commercial finance borrowing even though they categorically qualify for bank credit.

WHAT ARE THE BENEFITS OF ASSET BASED LENDING SOLUTIONS IN CANADA?

Asset based lending solutions provide a company with quicker access to capital compared to bank loan decisions which can be time-consuming – That is because loans are based solely on the value of the assets of the business – with less or no emphasis on business credit history – The vast majority of firms using asset-backed lending solutions utilize ABL based on the challenge of obtaining all the business capital they need to run and grow their business.

Additionally, asset based loan solutions are often tailored to the specific requirements of the company – This improved cash flow solution for the business allows a company to pay suppliers and meet short-term working capital needs.

Borrowers in asset based loans should ensure they understand the typically higher cost and the need to work with asset based lenders who can service their market and industry.

 
Sizes of asset-based credit lines range from 250k on the low end to tens of millions on the high end, with numerous players - both Canadian and U.S.-based providing Canadian borrowers with these facilities.

 
ASSET BASED LENDING RATES

Cost is, of course, always a discussion point when it comes to business borrowing. Although large creditworthy firms can borrow almost at the same or better prices than bank offerings the truth is that the majority of loan rates for Asset Credit facilities will always be more expensive.
 
It's a case of balancing costs against the benefits of all the financing you need for working capital and cash flow based on your revenues and assets.
 
As with any type of business financing, you have to balance costs with access to capital and flexibility and the time it takes to get approved. (ABL financing can happen in a matter of a few weeks if the borrower has all the proper up-to-date financials and asset lists)

Interest rates for asset-based lending solutions in Canada will typically range from 8% per annum to 1.5%  per month, and a number of different factors influence final pricing such as:

Transaction size,

Overall credit quality

Whether the ABL lender is a traditional or an alternative financial institution.

 

BRIDGING THE GAP – HOW ASSET BASED LENDING SERVICES WORK FOR SMALL AND MEDIUM-SIZED BUSINESSES IN CANADA

 

FORMULAS FOR ASSET BASED LOANS  CREATE A BORROWING BASE

 

Asset based lending rates are based on the types of assets that are used as collateral for the loan or line of credit –  More liquid assets on the balance sheet provide a higher loan-to-value ratio. Using accounts receivable as collateral for asset based loans is a key use of ABL -

 

Accounts receivable is often the largest current asset on the balance sheet and receivables typically represent the largest cash flow need.  Receivables are typically financed at 90% loan to value, while inventory financing through asset based lending is also widely used;  inventories are also financed based on the overall marketability of the inventory – Most companies have inventory in different stages, such as raw materials, work in process, or finished goods.

 

The uniqueness of an asset-based credit facility is that it can include the unencumbered value of equipment and vehicles owned by the company  - Also,  when it comes to asset based lending for real estate that is company property owned , commercial real estate, if owned by the business, can also be a component of the credit lien facility – or financed separately as a short term bridge loan.

DIFFERENT USES OF ASSET BASED FINANCE

 
In some cases, firms also used asset-based credit to acquire a competitor or re-arrange existing debt.  In other cases, ABL is simply a temporary bridge loan to get your company to where it needs to be without taking on more debt. Business owners/managers quickly pick up that if sales are growing and there are receivables and other assets to back them up, they have just discovered they now have all the financing they need.

 

Many companies find themselves in a cyclical or seasonal industry, placing even more pressure on predictable cash flow.

 
Canadians are always recognized as being conservative - if only for that reason some firms never check out asset-based lending as a good choice for their business - for whatever reason they associate not having bank financing in place with a stigma.

 

Not the case these days as many forms of alternative finance via asset based lenders are in fact the new ' mainstream, including the ability to refinance existing debt around asset lending values based on the true value of business assets.

 

Even some traditional financial institutions have become asset  based lending banks – although ABL bank lenders have a higher credit bar and a much higher minimum borrowing requirement – often starting at 5-10 Million dollars.

 
Let us not forget ratios and covenants. ABL lending is either covenant or ratio light or non-existent. It's your assets that back up the facility - not ratios. Banks love ratios in case you haven’t noticed!

 
In fairness, reporting requirements are often more stringent when it comes to ABL borrowing for asset-based loans. So be prepared to provide updated A/R, inventory and payable agings on an ongoing basis. Monthly is an absolute minimum but weekly reporting might also be required. It's the trade-off you make for the non-bank alternative via asset-based financing and getting a ' covenant light structure ' that appeals to many business owners.

 
CONCLUSION - ASSET BASED LENDING CANADA

"Finance is not the only thing that matters in business, but it is by far the most important." - Peter Drucker

Consider asset-based lending for more business credit availability via a flexible financing solution customized to your business and industry – Reap the benefit of no restrictive financial covenants and access to more capital when executing abl transactions.

If your business is a Canadian SME and you need to finance sales growth or focus on a financial turnaround let asset-based lending solutions help you avoid raising additional equity and avoiding equity dilution in your ownership of your business.

If you're looking for someone who understands cash flow lending and asset-based lenders and your business borrowing needs and you finally want to choose a non-business bank alternative to speak to 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can assist you with your borrowing needs and help to structure flexible financial solutions.

 

When comparing asset based lending to traditional bank financing businesses can properly assess their capital needs for credit and loan terms that make sense for their business.

 
FAQ: FREQUENTLY ASKED QUESTIONS / PEOPLE ALSO ASK/MORE INFORMATION

 

   
How do asset based loans work?  

 

 In ABL financing lenders consider the value of your business assets and your sales growth which generates accounts receivable. Business assets typically financed by ABL lenders and asset lenders include a/r, inventory, fixed assets and real estate - in some cases intellectual property can be considered in the borrowing facility.  Asset based revolving credit and term loans can fund all types of business assets, not just physical assets.

Those assets collateralize the loan and the emphasis on borrowing power is based on the more liquid an asset is. Asset-based lending examples include margining of receivables in the 90% range, which is higher than unsecured bank financing for accounts receivables via traditional commercial banking. Banks place a large focus on cash assets on hand and operating cash flows.

 
What are examples of asset-based lending? 

Asset-based lending examples include the financing of accounts receivable, inventory, and fixed assets /property and equipment and rolling stock – Real estate can also be financed under asset-based guidelines. Equipment financing is often a substitute for some forms of asset based loans.

 

 What is the Process To Obtain An Asset-based line of credit?

The process to determine the eligibility in obtaining asset-based financing will involve the appropriate due diligence around asset values, financial statement review, and any other issues that are of interest to the asset-based lender around your company or your industry.  Businesses should be prepared to provide year-end and interim financial statements, as well as up-to-date agings on accounts receivable and inventory –

 

A review of that information will allow the ABL lender loaning money  to provide a term sheet/finance offer that includes advance rates, interest rates, and repayment terms and any required minimal financial covenants typical in an asset backed loan which greatly differ from conventional lending criteria to access working capital.

Click here for the business finance track record of 7 Park Avenue Financial

Tweet

5 Things You Didn’t Know About Asset Based Lending in Canada

Asset-based lending in Canada – We’re discussing 5 things you didn’t know about ‘ABL Financing ‘ in Canada.

5 THING YOU DID NOT KNOW ABOUT ASSET BASED FINANCING

1. What is Asset Based Lending?
2. What does it Cost
3. How does it Work
4. For what type of firm is it perfect for
5. How to get such financing!


LET'S DEFINE ASSET BASED LENDING 

Asset-based lending and financing for your business is simply the utilization of your business assets for maximum business financing based on your business needs. Business owners and financial managers should understand that this is a replacement or specific financing as an alternative to either traditional financing ( via a Canadian chartered bank ) or to a firm that is unable to get financing that might otherwise be called traditional.  Firms in that category might include start-up operations or firms that have had business challenges. 

ABL financing is the utilization of your current and in some cases your long term business assets for the leveraging and monetization of working capital and cash flow. The current assets are almost always accounted receivable and inventory, and longer-term assets in some cases might include equipment or real estate that your firm may own – for example, owner-occupied premises.  

All assets must be unencumbered, that is to say that they should not have any liens or registrations against them, otherwise it would be difficult, if not impossible, to structure an asset based loan.
Typically the asset-based lender pays out any existing creditors and takes a charge against the assets being financed.

WHAT DOES ABL COST?

Does asset-based financing differ in cost to traditional financing? We have to use your lawyer’s typical answer (it depends) but the reality is that in Canada the costs of asset based lending are all over the map. In some cases they are actually lower than chartered bank financing; in most cases, they are more costly.


When we indicated to clients that financing of this type is more costly we point to clients that they have to balance any additional costs against what they are receiving. And what they are receiving quite often is simply the maximum working capital they need based on their asset and growth needs. That can rarely be achieved these days in the current challenging economic crunch - pandemic issues included.

THE EVERYDAY WORKING OF AN ASSET BASED CREDIT FACILITY

 So how do asset based loans work? A few simple key points will help you better understand how this type of financing might work for your firm on a day to day basis, and, as importantly, for long term growth.   The ‘key word’ here is ‘Asset’!  ABL financing focuses on the real true market value of your assets.

 Many other traditional types of financing, i.e. a bank line of operating credit, etc, is in fact focused on many other metrics such as the lender's perception of what industry you are in,  and typical financial ratios and metrics such as cash flow coverage analysis,  debt to worth ratios, etc, etc, etc!


Asset based lending puts those items aside. Using specialized industry experience, analysis, and in some cases appraisal of your assets you are provided with the maximum amount of capital those asset categories can achieve.

So, as an example, if you have  500,000.00 in account receivable you can borrow against that  $500,000.00. That typically is not how traditional financing works. We often point out quite frankly that asset based lending is in fact becoming a traditional financing method for Canadian businesses of all sizes.

WHO IS ' ASSET BASED ' ABL FOR ANYWAY?

So who is this type of financing for? The answer becomes very simple. It is for industries of all types in Canada – Typical transaction on the small side are $250,000.00 and deal sizes are in the multi-millions when it comes to large facilities. 

In some cases, sky is the limit and some of Canada’s largest corporations have adopted this financing method.  Asset-based lenders are specialists in understanding what your business is about, what are its cash needs and cyclicality, and what type of optimal structure works for your firm.

 HOW CAN MY FIRM ACCESS ASSET BASED LENDING ?   SPOILER ALERT - CONTACT '  7 PARK AVENUE FINANCIAL '

 How does your firm investigate asset-based lending on the Canadian business scene? Since the financing is rarely front-page mainstream news then it is highly recommended that you work with a trusted, credible and experienced advisor in this area. The Canadian landscape is cluttered with small firms, mega-corporations out of the U.S., as well as boutique divisions of other well-known institutions you know of but was not aware this type of financing was being offered to Canadian business.


So what’s out bottom line – its simply be informed, work with an expert, understand your cash needs on an immediate and long term basis, and consider structuring such a facility for your growth and benefit. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your asset-backed finance 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

Click Here For 7 PARK AVENUE FINANCIAL website !



7 Park Avenue Financial provides value-added financing consultation for small and medium-sized businesses in the areas of cash flow, working capital, and debt financing.



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. He is an experienced

business financing consultant

.

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 financing 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.


Click here for the business finance track record of 7 Park Avenue Financial







Stan Prokop

7 Park Avenue Financial/Copyright/2020

Tweet

Asset Financing Solutions in Canada - The New Financing Alternative

Asset Based Lending in Canada ( ABL ) ; What’s all the excitement about? As we are well into our 2020 business year in Canada the financial markets continue to provide challenges to Canadian firms in the small to medium enterprise sector ( ' SME ' ) for a variety of reasons, one of which is a Pandemic!

At 7 Park Avenue Financial we define SME as Sales revenues less than 50 Million dollars, but you will find a number of people with different size definitions. Suffice to say our numbers are smaller than those in the U.S, as usual!

WHAT IS ASSET BASED LENDING?

ABL financing is simply collateral-based lending - It secured inventories, A/R, equipment, and other property your business owns, such as real estate for example. Canadian businesses use asset based lending to cover short term solvency  issues to run their businesses - it is often termed as ' transitional financing '.

Working capital and cash flow financing challenges seem to be a constant source of challenge for the Canadian business owner and financial manager. When we combine that challenge with the fact that many companies have debt and debt service problems, and in many cases are coming off a bad year ( the worst year ever? ) you can see how any new financing solution very quickly becomes top of mind. If the Canadian business owner is confident that his liquid and fixed assets as a whole can support the financing need careful thought should be given to an ABL arrangement.

ABL is the term most people refer to when discussing ABL FINANCE if they have a financial background.

SPECIAL CONSIDERATIONS  

So what are those liquid and fixed assets – well they are of course the company’s liquid current assets, receivables and inventory? That is also balanced with the firm's fixed assets and real estate might be included in that. Whether on the U.S. or the Canadian side of the border the asset based lending lines of credit continue to increase – some of the largest corporations in Canada and the U.S. have either completed such financings or are contemplating them. ABL in Canada grew out of the tremendous growth in the U.S. asset based lending industry.

HOW CAN YOUR BUSINESS GET AN ASSET BASED LOAN

As large as the market and market potential are in asset based financing it is interesting to note that the actual market participants can really be brought down to a handful or two of key players. There are some large tier one type firms that are primarily offshoots of major U.S. corporations who dominate the market in asset based lending, and then there are a very small handful of Canadian well-heeled players.

That is finally balanced by a similar handful of Canadian tier 2 and tier three players who play in niche markets and geographies. Asset based lending works only when there are... guess what... ‘Assets ‘! As such industries that are very capital intensive in nature – think manufacturing, etc... Are perfect candidates for ABL type arrangements?

HOW ASSET BASED LENDING WORKS

Asset based financing is essentially an operating loan and line of credit that allows Canadian firms to meet everyday cash flow demands as they operate the business. As there is often a significant delay in the final collection of receivables your business needs cash flow to cover that gap. For companies that can't demonstrate ongoing historical cash flow from operations the collateral in the assets of the business provides business capital to run and grow a business.

WHAT ASSETS CAN BE USED TO SECURE A LOAN ?

Asset based loans and lines of credit are typically tailored to a company's specific needs. There is kind of a hierarchy of priority in assets that ABL LENDERS prefer. More liquid assets such as your receivables and inventory receive high borrowing margins, but other assets also command good borrowing ability - sometimes dependent on appraisals, etc. Borrowers familiar with traditional bank covenants and formulas will be happy to know that those restrictive type of covenants in finance rarely occur in ABL lending.

In the past there was a major stigma in the asset based lending marketplace that this type of financing – i.e. leveraging your current and fixed assets to the max, is a form of alternative financing that was previously embraced by only firms who were in some sort of financial trouble or distress.

While a firm can have financial losses, a poor balance sheet capital structure, or cash flows that are very volatile or seasonal and still be a great candidate for an asset based line of credit /loan, it should be pointed out that major successful well-known corporations have added ABL financing to their financing toolkit so to speak.

 WHAT DOES ASSET BASED FINANCING COST VS BANK FINANCE?   PROS AND CONS OF ASSET BASED LENDING

When CFO’s and business owners meet with chartered banks to structure operating and term financings the discussions revolve around balance sheet ratios, debt covenants, cash flow coverage, and personal collateral. When all of those issues are generally positive in nature the Canadian chartered banks are providing lines of credit and term facilities at very low interest rates.

For the ABL lender it is simply a lending decision around the lenders ability to convert collateral to cash under the ABL facility. While asset-based lending interest rates are almost always higher than traditional bank financing rates have come down significantly and the final cost of borrowing will depend on the overall credit profile of your company and industry, as well as its current financial position and years in business.

When there are major challenges in satisfying bank requirements those ratios and loan covenants are not on the discussion table with your asset based lender, only the liquidation value of all your assets is. Receivables and inventory in most firms are of higher quality and can be margined in the 90% range, while appraisals are performed on other fixed type assets. That gets your company maximum asset financing, and that is what ABL is all about.  Real estate owned by the company can also be part of the asset mix.

Is it more expensive than traditional bank financing – we would say 95% of the time it is. But as a business owner do you want no or a small credit facility at a great rate or all the financing you need at a more expensive rate? Asset based lenders have a thorought due diligence process around your financials and the assets that ultimately finalize a term sheet / offer to finance. Canadian companies looking for SME COMMERCIAL FINANCE solutions and who have business assets are eligible for asset based financing loans.

Whether your business is a major corporation of an up and coming startup it's cash flow that is like ' gasoline to a car '. Operations must be funded and working capital financing must be conserved and maximized. Thousands of companies cannot satisfy ' cash flow based loans ' and are unable to demonstrate past and future cash flow generation. That is one of the main reasons why asset based financing works.

 CASH FLOW VS ASSET BASED LENDING - WHATS THE DIFFERENCE ?   

Companies that have bank financing in place for cash flow based borrowing are subject to potential reductions in their business lines of credit when their profits drop due to company-specific of general economic issues. On the other hand firms that borrow using ABL finance have the assets on their balance sheet backing up collateral for loans and lines of credit - cash flow is really a secondary consideration for the ABL lender.

ABL credit lines are formed by a percent of the value of your total assets, and facilities typically grow automatically as sales and assets grow !
ABL allows you to leverage assets and is often an intermediate step back to traditional bank financing for many companies; it's flexible and is often used in conjunction with buying a business or is part of a TURNAROUND FINANCING and a restructuring or refinancing strategy.

Various types of asset based financing such as inventory loans, purchase order financing and factoring ( pledging accounts receivable) form part of the ABL solution .For information on PO FINANCING click here , and for an understanding of how factoring works click here.
  
CONCLUSION  

Asset based lenders allow companies to borrow money based on the liquidation value of assets on its balance sheet. A recipient receives this form of financing by offering inventory, accounts receivable, and/or other balance sheet assets as collateral. While cash flows (particularly those tied to any physical assets) are considered when providing this loan, they are secondary as a determining factor.

They are fast flexible solutions outside of traditional financing and banking covenants. Ensure you are aware of this newer financing alternative – now it's your turn to decide, so talk to a trusted, credible and experienced Candian business financing advisor to see if asset based financing will work for your firm.





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

Click Here For 7 PARK AVENUE FINANCIAL website !



7 Park Avenue Financial provides value-added financing consultation for small and medium-sized businesses in the areas of cash flow, working capital, and debt financing.



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. He is an experienced

business financing consultant

.

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 financing 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.


Click here for the business finance track record of 7 Park Avenue Financial







Stan Prokop
7 Park Avenue Financial/Copyright/2020

Business As Unusual - Asset Based Lending Works Because Its Business As Unusual !

Asset Based Lending In Canada

Tweet

Asset based Lending - Canada is catching on quite quickly to a new breed of financing facility that has been in existence in the U.S. for a number of years. Whether your firm is relatively new, large or small, you have the option of looking at an asset based loan as an alternative financing facility in Canada, unlocking your assets for capital! Let's dig in.

The acronym for Asset Based Lending is ' ABL ' - ABL has grown popular for some very simple reasons :

1. ABL facilities will often resemble a bank credit line, providing the client with full-service banking needs

2. ABL lenders have a solid understanding of specialized asset values

3. Transactions are often very much ' customized ' to a particular firm or industry

4. There are limited or no ' financial covenants in asset-based lending; As an example banks are focused on ' leverage covenants ', thereby forcing firms to meet debt to equity ratios as an example that may be unachievable for many firms. Covenants in finance in banking scenarios become a real challenge as a firm tries to balance ratios versus growth opportunities.

5. There are no real ' upper limits' on the amount a firm can borrow in ABL, while the smaller transactions commence in the 250k range, which is considered a very small facility

6. An ABL loan line of revolving credit facility will almost always deliver more liquidity to a business because loan margins are much more generous; typical advance rates for a/r and inventory are significantly higher than bank credit lines. Stand-alone inventory loans can also be accessed as an inventory loan is a subset of asset based lending.

7. Many company's and certain industries, in general, are very ' seasonal ' when it comes to revenue recognition, need to build up inventory, etc. Asset-based credit address this issue head on. Additionally, certain industries become ' out of favour' in traditional financing circles, and ABL can often easily finance cyclical or industry specific challenges

8. Outside of general borrowing needs asset finance loans are very appropriate for acquisitions and or management buyouts.

9. Certain banks also offer ABL loans and pricing is extremely competitive KEY POINT: It should be noted that in general non-bank commercial asset based lenders have higher rates than Canadian chartered banks

10. Asset based non-bank revolving credit facilities are not really 'capped' with an upper credit limit - they can easily grow as your sales and asset base grows. This is a key differentiator vs a bank line of credit.

Asset Based Lending Versus Cash Flow Lenders

Part of the reason that asset-based lending - ' ABL ' has caught on in Canada is the current state of commercial business banking and in Canada and the access to liquidity challenges that many firms face in the post-2010 business environment. Suffice to say the 2020 pandemic has brought those same liquidity challenges to Canadian businesses

A BUSINESS LOAN WITH COLLATERAL

When your company has significant assets tied up in accounts receivable, inventory equipment, and sometimes real estate you want to ensure you are financing them at optimal levels for both survival and growth. Asset financing is the ultimate working capital finance option, as it comes with flexibility and can deliver urgent timely cash flow needs that many companies require when they are in a process of transition, or, alternatively, exploring significant growth options.

HISTORY OF ABL FINANCING IN CANADA

Although the basic financing concept is new ABL has been prospering in the U.S. for a number of years - Canadian firms compete with U.S. ABL lenders in our own business financing marketplace. Every industry in Canada has potential access to asset financing lending solutions - we note though that many industries are the perfect ' poster child' for ABl. Manufacturers, distributors, retailers are very typical users of the ABL solution.


As we noted some of the largest corporations in Canada utilize this type of financing, but the demand for ABL probably grew more out of the need for smaller and medium-sized firms in Canada - let’s say with revenues under 20 Million dollars - to get the operating financing they need.

BENEFITS OF ASSET BASED LENDING

The benefits of ABL financing seem very obvious to Canadian business owners and financial managers. The financing revolves totally around assets, and places only a very small reliance on debt to equity ratios, operating ratios, cash flow coverage, etc.



When Canadian businesses cannot satisfy their bankers on the above ratios and loan cash flow coverage they view ABL as an alternative financing solution. We would point out that ABL financing, similar to any other commercial financing, is not a solution to a firm who is in a death spiral - years ago ABL had the taint of a 'lender of last resort' - that is categorically not the case now and is utilized by firms who want to maximize operating and working capital financing but cant in many cases satisfy all Canadian chartered bank requirements.

WHEN YOU SHOULD CONSIDER AN ASSET BASED LENDING SOLUTION

ABL finance is a business loan that relies exclusively on the value of assets that become the collateral for a loan or revolving credit facility. Banks as an example place a huge emphasis on a firm's ability to generate positive cash flow from operations. Firms that are unable to demonstrate cash flow but still require financing utilize asset based lending arrangements to generate cash. There may be a number of reasons why a firm cannot temporarily satisfy banking covenants - the firms' financials may not be ready or updated as an example.


The typical scenarios under which a firm considers an asset-based lending arrangement are:



Growing very quickly - in high growth mode



Expanding into new markets



Merging with another firm



In 'Special Loans 'now and wishes alternate financing



We can't over emphasis the before mentioned point about financial statement characteristics - Asset based lines of credit focus solely on assets, that is where the liquidity and the operating facility works at its best. In many cases firms that have previous financing arrangements can significantly increase their credit availability by switching to an ABL line of credit.

EXAMPLE OF AN ASSET BASED WIN!

Our firm, 7 Park Avenue Financial, worked with a firm that was in Special loans with a chartered bank. They had an original line of credit of 750,000.00 - the bank cut it down to 500,000.00 and also put the customer into a Special loans category. We originated an asset based line of credit for 1,000,000.00 based on the firm's receivables, inventory, equipment and real estate. The customer utilized the ABL for about 18 months and then migrated back to commercial chartered banking arrangements with another bank. That story plays out over and over again in Canada.


We can say that the amount of funding a company can receive in an ABL arrangement is really based on a hierarchy of value of any given asset category. So as assets become more liquid on your balance sheet and work up to 'cash on hand; they have higher loan to value ratios. So while it is improbably and very unlikely your firm would receive 100% financing receivables as an example typically qualify for 85-90% funding. Many firms owner their own premises and there is significant equity in real estate, so that category also would receive a higher 'ltv' ( loan to value) possible in the 75% range as is common. Standalone inventory loans are also a subset of ABL financing.



CONCLUSION

Asset Based Lending In Canada can be one of the most effective business credit facilities for customers unable to achieve full traditional bank financing. Securing liquidity through company assets allows your borrowing to expand and contract when you need cash flow. Companies of any size or transitional stage can take advantage of working capital provided by asset based lenders.


Asset based lending will work for your business credit needs if your cash flow requirements are seasonal and revenues fluctuate. If your business plan includes acquisition financing, a turnaround or restructuring, or even a need for capital outside of equity considerations ABL will work for your company. ABL allows you to leverage company assets and is often a bridge back to traditional financing for many companies in Canada. The ability to finance a firm when it is in transition is a key part of ABL's success in Canada.



Asset based lines of credit? Your mission, should you choose to accept it? Investigate this unique financing option and work with a trusted, credible and experienced Canadian business financing advisor if the solutions meet your working capital 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

Click Here For 7 PARK AVENUE FINANCIAL website !



7 Park Avenue Financial provides value-added financing consultation for small and medium-sized businesses in the areas of cash flow, working capital, and debt financing.



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. He is an experienced

business financing consultant

.

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 financing 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.


Click here for the business finance track record of 7 Park Avenue Financial







Stan Prokop
7 Park Avenue Financial/Copyright/2020

Asset based lending canada

Asset Based Credit Line : A Working Capital Alternative

Tweet

Time For Some Fancy Footwork Around Your Business Financing  & Line Of Credit Needs?


An asset based line of credit is an emerging financial alternative in Canada for companies of all sizes that wish to maximize working capital in terms of their growth needs. This type of lending revolves around loans to your business where the collateral of your assets and your ability to generate sales provides all the liquidity you need to operate and grow.

More often than not asset based lending is associated with companies who are unable to arrange or qualify for what most business owner’s term as a bank operating line of credit.



Asset based lending is known as ' ABL financing ' and has risen to great popularity, first in the U.S. where it originated, and now to the Canadian marketplace. Although occasionally Canadian banks choose to participate in Asset Based Lending through separate units within the banks the vast majority of providers of asset finance are commercial finance companies that are independent of the banks.

Why Do Companies Consider ABL Finance And The Asset Based Loan

Asset based credit lines and loans are used for a variety of purposes - we can make the case they are an ' all-season ' Canadian business financing solution. They are used for:

Non-bank asset based revolving credit facilities

Companies that are growing quickly and can't access all the capital they need

Structuring a merger or acquisition or a management buyout

Seasonality in business financing needs - example - Xmas retailer, etc

Companies that have high debt/equity ratios who are ineligible for traditional finance solutions

Turnaround and restructuring facilities/refinancing of existing debt

Financing The Purchase Of A Business

How Is Asset Based Lending Different From Bank Borrowing?

New clients of 7 Park Avenue Financial want to know the difference in bank borrowing versus alternative lending solutions such as ABL. In banking it's all about traditional corporate credit quality and that boils down to profits and capital structure design around a solid balance sheet with solid owner equity. Those elements historically define a great company poised for continued success. Asset based lending on the other hand revolves around shorter-term focus around converting current assets in cash flow and an understanding around the true value of the collateral of the company.

That latter ABL focus doesn't require that a company be doing as well as a bank financed company. So sales turnover and the liquidation value of assets are essentially what the ABL loan is about when it comes to corporate finance.

In accessing asset financing via an asset based credit line for working capital and cash flow your focus should be on the short term liquid assets of receivables and inventory. That will allow your borrowing facility to fluctuate and lower overall financing costs. That constant turnover of sales into cash will make the ABL solution even more beneficial, and, important to know, these facilities can very easily be increased as you generate higher revenues.




Credit types vary, and traditional bank financing places a heavy emphasis on the overall financial position of your income statement and balance sheet. Therefore, if that is the focus then firms such as yours with either balance sheet issues, or experiencing temporary financial losses or other negative circumstances do not quality for margined lines of credit with institutions such as Canadian chartered banks.

HOW IS THE ASSET BASED CREDIT LINE LIMIT CALCULATED?

The calculation of your borrowing limits under your credit facility has some basic formulas attached to it . Accounts receivable and inventory are the two key drives, but fixed assets and any real estate can play a key role also.

The formula and final limits of your facility are called a ' borrowing base ' and this number is reviewed, typically every month to determine what your new limits are based on the value of your a/r and inventories. This is the revolving part of the facility, and often the fixed assets and real estate part of the facility are under a separate term type of loan. Usually the advance rate on your sales/receivables is higher than the inventory part of the facility, but it should be recognized that asset based lenders are experts in understanding the true value of inventory and are in a position to generate higher advance rates than chartered banks.



Typically A/R under 90 days is an essential part of the borrowing formuls. Typically funds are advanced a 85-90% of the a/r portfolio under 90 days. As you collect receivables your reduce the advances that have been made under the facility, not dissimilar to a bank LOC. The ABL underwriter will look at your overall DSO/COLLECTION period and also look at individual issues such as any one client being a large percentage of yoru sales ( 'concentration' ) or any set-offs you might have in place with suppliers or customers .

KEY POINT - It is essential that your firm is up to date on provincial and federal taxes, as CRA arrears can destory your lenders security on the facility. If you do have CRA arrears they can be paid out at the start of the facility, or you can ensure you have a documented payment plan in place on those arrears.

Inventory advances are where Asset Based Lenders shine. They understand the different components of inventory such as raw materials, work already in process, and finished goods. Their ability to underwrite and advance against inventories is a key differentiator in asset based lending. To you the borrower it's simply more borrowing power!



Asset based lines of credit take the reverse position from banks, simply that you have the assets, let's finance your firm on the strength of your assets, with minimal, if any, in fact, focus on ratios, covenants, outside collateral, operating metrics, personal guarantees, etc.



An asset based line of credit partner will tend to work through with your unique challenges in your industry or your business model. Some of those challenges might be the seasonality of your business or the special ‘one-of' situations we referred to. Some of those circumstances might be making an acquisition, restructuring your firm, or being in the receipt of large new contracts or purchase orders that are out of line with your traditional financing arrangements.



Operating capital financing, or rather the lack thereof(!) can often be the reason your firm is unable to take advantage of strong market opportunities to maintain your competitiveness.



One of the largest parts of an asset based lending facility is receivables financing. In small firms this is often taken care of by a factoring facility – your invoices are sold to the lender, you receive immediate cash, and you can structure facilities around such issues as credit insurance, non-recourse to your firm, etc.



The asset based line of credit, in a true sense, offers all of the advantages of factoring but operates instead like a true bank facility – your receivables, and inventory, are highly margined to the maximum value, and your access to cash availability is directly commensurate to your sales growth – in other words, you have no real cap on your operating facility – you receive cash for receivables and inventory as fast as you can sell and move our product and services!



Your firm will probably find that anyone in the asset based finance area has a stronger knowledge of your business model and assets. If your company has a strong focus on understanding the true collateral value in your business, and is focused on asset turnover in a/r and inventory your firm will be a true beneficiary of the asset based credit line. The general attributes of ABL financing

What Does Asset Based Lending Cost? Factors To Consider

Asset based lending credit lines and facilities usually are higher cost than bank financing when it comes to credit in the capital markets. The low interest rate environment has allowed asset based lenders to become more competitive and in a small number of cases asset based lenders can be competitive or on par with banks on higher quality deals. From a borrowers perspective clients need to weight the access to significantly more business capital versus the cost, more so when your company cannot in fact access bank credit.

Other tradeoffs are the requirements for more regular reporting on your receivables and payables and inventories and any miscellaneous audits or appraisals that might be required by the asset based lender to justify the higher borrowing levels. As we have stated the ability to access cash without the typical bank covenants and operating metrics is always top of mind with borrowers utilizing asset based lending. The overall flexibility in an asset based credit line tends to work well beyond traditional finance when all the options of each type of financing are considered.



While determining your borrowing strategy should be individualized based upon each business and tailored to your business’s specific needs, borrowers seeking working capital financing need to seriously consider the benefits of working with an asset-based lender, as it can provide greater flexibility and options for businesses seeking to look beyond traditional bank lending. Share which lending strategy has worked best for your business in the comments below.






Since asset-based loans don’t rely on the borrower’s operating performance, but on the quality of the collateral, fewer financial covenants are required of the borrower, and as compared with traditional bank lending, ABL lenders typically require a much more limited degree of reporting back to the lender.

KEY POINT - ABL facilities usually start at a minimum of 250k relative to the approved sized of the borrowing facility. This is the lowest end of the scale and there is no real upper limit to a company borrowing if the firm satisfies assets and sales revenue size.


If a company is too small, or for some reason is not eligible for abl lending then a factoring/ receivable financing facility should always be considered. Even startups or very early stage and smaller firms can consider the factor funding solution. Access to cash flow is fairly quick and easy for firms looking to just finance receivables. Providing your financials, aged payables and receivables and some other general info on your firm will typically get you started and approved quickly.

7 Park Avenue Financial recommends a CONFIDENTIAL RECEIVABLE FINANCING facility for firms considering just an a/r solution, outside of the asset based credit line.

This type of facility allows you to cash flow all your sales immediately, and your firm is responsible for all the billing and collecting very similar to a bank facility. In lieu of an interest rate commercial factoring firms chared a fee for discounting the invoice, and this is typically in the 1.5-2% range , so if your firm absorbs that fee and has good margins your cash flow problems are certainly solved.



We recommend that you seek out and talk to an experienced and credible advisor in Canadian business financing to determine if the advantages of an asset based line of credit work for your firm! It is a business loan with collateral that works.




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

Click Here For 7 PARK AVENUE FINANCIAL website !



7 Park Avenue Financial provides value-added financing consultation for small and medium-sized businesses in the areas of cash flow, working capital, and debt financing.



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. He is an experienced

business financing consultant

.

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 financing 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.


Click here for the business finance track record of 7 Park Avenue Financial







Stan Prokop
7 Park Avenue Financial/Copyright/2020