A Stunning Claim? You Made A Big Financing Mistake By Not Considering An ABL Lender!

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How dare us. Are we actually saying you, the Canadian business owner of financial manager don’t know how to run your business? Not really! Our point is that you in fact may have missed one of the most solid strategies out there today when it comes to business loan financing. Simply speaking, if you haven't looked at an ABL lender for asset based finance business lines of credit, you just may be missing the boat when it comes to an asset based loan.

 

BUSINESS REFINANCING IS A CHALLENGE

 

We do think we can relate to the Canadian business owner though because we're the first to acknowledge that refinancing your business, in good times or bad is both a challenge and concern to the owner/manager. ABL lending is the solution that just might work!

 

U.S. AND CANADA SIMILAR GROWTH IN ABL LENDING

 

Whether you like it or not we often, in Canada, get our business trends from the U.S.  (We’re not necessarily thanking them for the 2008 worldwide implosion), and in the states, asset based lending drives a huge amount of business financing. So, we should at least look into that, right?

 

WHAT IS THE  ABL LENDING ASSET BASED LOAN  SOLUTION AND WILL IT SOLVE CASH / WORKING CAPITAL CHALLENGES

 

When we talk to clients about asset-based financing their business initial conversations focus on two areas - first of all, a definition of the subject, and secondly where ABL fits in the cash flow solution.

 

In terms of our subject matter let’s get straight on a definition in asset based loans. We're talking about what some call a  ' comprehensive ' ABL lending loan , that is to say, it is in fact one business financing revolving line of credit facility that lumps together accounts receivable , inventory/finished goods/work in progress,  fixed assets, and even real estate if your firm has that, into the mix. Real estate in ABL typically means owner-occupied and owned premises.

 

And where then does ABL lending  fit? That’s the good news, as it fits... everywhere. This type of business financing facility can function as a business line of credit, it can be used to purchase another firm via the other firm's asset base, and it is more often than not used to replace or pay out a bank facility when that isn’t working for the client.  Bottom line, a true business catch-all!

WHO USES ABL?

So who uses asst based lending ABL? That’s probably one of the biggest surprises to clients when we put forth an asset based  ABL lender solution. Why? Because what form of finance can be used from start-up to the world's largest corporations. Certainly, none that we are aware of.  Although not widely publicized, many of the world’s largest and most successful corporations utilize ABL as an alternative to traditional bank financing. It classic balance sheet finance 101 with a focus on .. Assets!

 

Cost is always a discussion point when you consider a new form of daily financing for your firm. Here you need some clarity, because asset based business credit lines are cheaper than bank facilities, and they are also more expensive.  What drives your final cost is your overall creditworthiness, the size of the facility, the level of accounts receivable and inventories, and who you are dealing with. That's the quick answer to ' whets my rate '?

 

So what do you need to really consider when it comes to assessing a new business line of credit asset based solution?

 

KEY AREAS REQUIRING FOCUS IN YOUR ABL LENDING DECISION VIA ASSET BASED LENDERS

 

Some key areas to focus on / explore and discuss are:

 

What are the direct advantages of ABL working capital solutions?  (More borrowing power)

 

Can both private and public companies use it? (Answer - yes!)

 

How does the facility operate on a daily basis different from a bank line re: access to cash flow  - (it doesn't)

 

Does ABL deliver more cash to my business (yes, 99.999999% of the time?)

CONCLUSION

Speak to a trusted, credible and experienced Canadian business financing advisor on why this solution for daily financing of your company... 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

ABL Lender Business Financing Asset Based

An ABL Business Line Of Credit Can Earn Your Company The Working Capital It Needs . Asset Based Lending Simply .. Works.

Why ABL Reverses The Cash Flow Plunge And Allows Working Capital To Soar


OVERVIEW – .Information on the ABL line of business credit in Canada . Asset based solutions deliver on cash flow and working capital when you need it the most



Can the ABL asset based business line of credit really reverse the cash flow ' plunges' that companies inevitably face? We think it can, and by the way it’s been proven by the thousands of firms in Canada and the U.S. that utilize this method of revolving credit facility for their business needs. Here's why... and how. Let's dig in.

It always helps when the business owner/manager understands the basics. So the asset based credit line for business simply a revolving credit finance solution that allows your company to draw down on working capital needs based on a high margin against inventory, equipment, receivables and real estate if that plays into the equation.

While for any type of business finance it always helps if a company has a track record a true ABL solution works for almost any type of size and firm that has assets. While transaction on the lower end of the scale might be in the 250K range there is virtually no upper limit and true asset based facilities many times run into the many millions of dollars. The only prerequisite - assets!

This method of finance a business line of credit is directly comparable to Canadian chartered bank facilities. Whether it’s the bank or your asset based lender you grant a secured position on all business assets, and then borrow against them. But in the case of the ABL facility you actually do borrow against all of those assets - daily!

The immediate question that comes to mind is of course the difference in choosing between the bank and the ABL solution. Typical ABL structures provide borrowing against 90% of receivables, 50-70% of equipment true value, and typically 50% on inventory. If your company owns real estate it is easily thrown into the borrowing mix.

It is therefore obvious to see some of the key tangible benefits of the ABL line of credit. If we had to succinctly summarize them it would be as follows:

- All business assets become borrowing power
- funding is immediate
- As you business grows the facility grows in lock step
- Easier to qualify than bank financing
- Similar to bank credit facilities you only pay for what you are borrowing at any given time
-There is not contact with your clients in a true ABL asset based solution

So the simple difference - you're borrowing on business assets and revenue growth - not cash flow ratios and covenants and debt to equity borrowing constraints. It's that covenant freedom you have been looking for - as some put it - it allows you to weather those business ' bumps in the road'.

It's easy to see why this innovative financing solution is gaining more traction everyday. In effect it has become ' respectable'! Improper perceptions occur in the marketplace when people think ABL is a last resort type of financing. In fact it’s the first resort for some of the largest companies in Canada and the U.S.

While asset base lending usually, but not always, is more expensive, the fact that you're turning asset, generating profits, and not taking on term debt often makes a lot of sense.

If you wish to reverse the cash flow plunge, letting working capital soar, seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your ABL needs.







7 PARK AVENUE FINANCIAL = ABL ASSET BASED BUSINESS LINES OF CREDIT 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 10 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 :





CONTACT:
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
















Stan Prokop

A Stunning Claim? You Made A Big Financing Mistake By Not Considering An ABL Lender! Asset Based Business Finance Works

Asset Based Financing In Canada


OVERVIEW – Information on asset based business financing in Canada . Should you consider an ABL lender for your operating line of credit needs ?



How dare us. Are we actually saying you, the Canadian business owner of financial manager don’t know how to run your business? Not really! Our point is that you in fact may have missed one of the most solid strategies out there today when it comes to business financing. Simply speaking, if you haven't look at an ABL lender for asset based finance business lines of credit, you just may be missing the boat.

We do think we can relate to the Canadian business owner though, because we're the first to acknowledge that refinancing your business, in good times or bad is both a challenge and concern to the owner/manager.

Whether you like it or not we often, in Canada, get our business trends from the U.S. (We’re not necessarily thanking them for the 2008 world wide implosion), and in the states asset based lending drives a huge amount of business financing. So, we should at least look into that, right?

When we talk to clients about asset based financing their business initial conversations focus on two areas - first of all a definition of the subject, and secondly where ABL fits.

In terms of our subject matter let’s get straight on definition. We're talking about what some call a ' comprehensive ' ABL, that is to say it is in fact one business financing revolving line of credit facility that lumps together receivables, inventory, fixed assets, and even real estate if your firm has got that, into the mix.

And where then does ABL fit? That’s the good news, as it fits... everywhere. This type of business financing facility can function as a business line of credit, it can be used to purchase another firm via the other firms asset base, and it is more often than not used to replace or pay out a bank facility when that isn’t working for the client . Bottom line, a true business catch all!

So who uses ABL? That’s probably one of the biggest surprises to clients when we put forth an ABL lender solution. Why? Because what form of finance can be used from start up to worlds largest corporation. Certainly none that we are aware of. Although not widely publicized, many of the world’s largest and most successful corporations utilize ABL as an alternative to traditional bank financing.

Cost is always a discussion point when you consider a new form of daily financing for your firm. Here you need some clarity, because asset based business credit lines are cheaper than bank facilities, and they are also more expensive. What drives your final cost is your over all credit worthiness, the size of the facility, and who you are dealing with. That's the quick answer to ' whets my rate '?

So what do you need to really consider when it comes to assessing a new business line of credit solution?

Some key areas to focus on / explore and discuss are:

What are the direct advantages of ABL? (More borrowing power)

Can both private and public companies use it? (Answer - yes!)

How does the facility operate on a daily basis different from a bank line - (it doesnt)

Does ABL deliver more cash to my business (yes, 99.999999% of the time?)


Speak to a trusted, credible and experienced Canadian business financing advisor on why this solution for daily financing of your company... works!

7 PARK AVENUE FINANCIAL
CANADIAN ABL ASSET BASED 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 9 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/abl_lender_business_financing_asset_based.html

Can An ABL Lender Get Your Business Financing House In Order ? Key Take Aways For Asset Based Financing Success

Why Asset Based Business Credit Lines Just Might Be The Right Solution

Information on asset based business financing in Canada . How the ABL lender provides the capital needed by Canadian businesses.



Business Financing in Canada. We've always felt that an ABL lender (ABL = ' Asset Based Lending’) is one way for the Canadian business owner and financial manager to get the house... i.e. your company, in order!

Larger corporations, in Canada we often refer to them to as the FP 100, or FP 500 perhaps have access to capital in a number of ways. And if they are public companies relying on equity, all the better of course.

Unfortunately if your firm is in the other hundreds of thousands group you're a victim of the changing tides of access to capital in Canada. Think back to 2008 when it could not have gotten worse. The hurdles to that access to business financing seem... high!

In Canada there is a whole spectrum of business financing available. It's a question of knowing where it’s available, and how you can access it. That’s where the ABL lender comes in - they fulfill on of those huge niches in Canadian finance... Asset Financing.

The challenge quite often is simply understanding the terminology, and the finance folks in the industry do a great job, probably (we hope!) unintentional of confusing us with various terms in Canadian business finance.

We have found there is a solid roadmap business owners/managers can use to successful complete asset based business financing. So let’s share some of the steps on that roadmap.

Many clients we talk to need business financing... yesterday. And that many times is the problem in that they are perceived as somewhat desperate and in dire straits, creating potential negative perceptions around their ability to raise, and repay financing.

Knowing how you will use asset based lending is simply a case of ensuring that your ABL lender understands a clear use of funds. More often than not its cash flow and working capital financing... ie your daily operational needs.

In many cases certain types of finance are simply not suitable for your firm. You can waste a lot of time chasing financing that will never happen, and we’ve met our share of clients doing just that.

The ABL lender has one goal, and when it works you will be in great shape. That goal is to leverage assets. That of course has to be balance with an appropriate return to the lender, as well as your company’s' ability to generate a positive return on this new capital.

The true beauty of asset based business financing in Canada is that it covers the gamut of business stages: start up and pre revenue, emerging growth, growth, and mature.

The asset based line of credit works great in certain cases - its optimal when it finances receivables, purchases inventory, etc. It doesnt work when it is used inappropriately for term debt, fixed asset purchases, or product development needs.

The ABL lender is typically non regulated, they are private firms that compete with banks and finance assets they are comfortable with. Receivables and inventories and equipment are great ABL assets. These deals have no amortizations, grow with your firm, and are ' evergreen in nature.

Can ABL get your business financing house in order? It has for hundreds / thousands of firms, so consider speaking to a Canadian business financing advisor who can assist you with finance success.

7 PARK AVENUE FINANCIAL

CANADIAN ASSET BASED LENDING 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/abl_lender_asset_based_business_financing.html

Considered An ABL Asset Based Secured Business Line Of Credit ! Is The New Year The Right Time For Your Company?

Looking For A New Way To Master Business Financing?

Information on a secured business line of credit for Canadian business financing . Let an ABL asset based facility solve working capital needs.. differently .



What Canadian business owner or financial manager hasn't wondered if they have properly considered all the financing alternatives available to their firm in today's challenging borrowing market? One mechanism not fully known or understood properly is the secured ABL asset based business line of credit. Is it for your firm? You'll decide shortly!

Although Canadian commercial bankers still proudly trumpet the fact that chartered bank commercial credit facilities are widely available hundreds or thousands of businesses in Canada are unable to meet the qualifications for such financing. Basic qualifications for a bank credit facility that margins receivables (and hopefully inventory) are not complicated to understand. They are of course difficult to achieve or provide! They include clean balance sheets, income statements that show profitability, and positive cash flows, both historical and current. Oh and by the way, owners must often back stop these facilities with guarantees that often require personal assets to be either pledged, or collateralized.

Don't get us wrong. Bank financing in Canada is available, it’s cost effective, it’s simply just a bit harder to get if you can't qualify under out criteria we set out above.

So, enter the secured ABL facility. Here's business working capital and cash flow financing with an emphasis on only one word: ' Assets'! The ABL lender is focused. That focus? Your key business assets of receivables, inventory, unencumbered fixed assets. You borrow against the total current market value of these assets via a revolving secured business credit facility. If there is a bottom line it’s a simple one - a focus on collateral, not ratios, covenants, or outside collateral.

A common question from clients revolves around what dollar level of facilities is either the entry point or the cap on such secured facilities. The good news is that there is no upper limit on ABL deals in Canada. In fact, unbeknownst to many some of Canada's largest companies utilize ABL facilities, having forsaken bank facilities which no longer make sense for their business.

We consider a solid entry point for such facilities to be in the 250k range, which more often than not is a combination of receivables and inventory. We hasten to add that there must be a reasonable mix as typically A/R has a higher borrowing value. However, there is always an exception to the rule, so a good example of a great ABL solution is the financing of inventory for retail chains, etc.

Pricing on secured ABL facilities fluctuates widely in Canada. Pricing can be either below bank comparables, slightly higher, than or as high as 1.5-2% per month depending on whom you choose to deal with. Mid market firms who have assets are great candidates for this type of business financing,

A proper submission for an ABL facility should include financials, proper aged payables, receivables and inventory, as well as miscellaneous information you would associate with any type of business finance application.

So why consider an alternate method of financing in the New Year? It's about increased borrowing power, easier qualifications, and competitive pricing commensurate with your overall credit and asset quality. Speak to a trusted credible and experienced Canadian business financing advisor on reasons to make a change in your finance strategy.





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/bank_financing_commercial_business_banking.html

Worth Considering – Why A Canadian ABL Lending Facility & Asset Based Loan Is Unique

It's no secret to any Canadian business owner or financial manager that business financing, specifically operating lines of credit have been difficult to achieve over the last several years.

Let us ask you a simply question - Do you think an ABL lending facility is worth considering for your firm, and why is this type of asset based loan ( its not a loan per se ) working for thousands of firms in Canada .

We're the first to forgive clients who either are confused about what an ABL revolver is, or, better yet, haven’t even heard of this type of business financing. We'll clear that up for you in short order.

Confusion partly exists because there are some different, let us call them ' versions ' of an asset based loan and abl lending facility. They also go by some different names, such as working capital facility, abl revolver, asset based lending... and on it goes. Could one of these versions be the right type of financing for your firm? We think it could!

So let’s get back to defining those different solutions, or ' versions. In its purest form asset based financing is a credit facility which is collateral based line of credit based on underlying assets - those assets typically being receivables and inventory. Typically a true asset based lender will also let that same facility margin equpment and real estate if that fits into your mix.

So whats all the ' hub bub ' about that, clients ask, doesn’t Canadian chartered banks offer that same thing? Not really and here's why!

ABL financiers use a borrowing base formula of those assets we just mentioned and use a much higher advance or margining rate. What's the bottom line on all that? ... Simply that you have just achieved a much higher business line of credit.

So how do abl lending and asset based loan granters do it? It's simpler than you think. They simply tend to have a greater expertise in certain industries, but moreso exert strict controls and reporting on you the client.

And don't get us wrong; those ' controls ' aren't all the ratio, covenants, and personal guarantee and outside collateral that are required from those great folks at our chartered banks. In the case of an abl lending facility those controls are a requirement for regular reporting by you of those assets being financed, and occasional operational audits. We advise clients that those two items are well worth the significant increase in working capital and cash flow they will obtain from an asset based loan.

Oh, and by the way, you will note we said the facility is not a loan; it’s simply a monetization of those assets that can drive working capital your way much sooner and in a bigger way.

So, in summary, is an ABL lending facility worth considering. If you have all the business financing you need and you have no need for additional cash flow and capital then guess what... it’s not for your firm. But, on the other hand... if.....!

P.S. Trust us. check it out.




Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.comOriginating 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 .Info re: Canadian business financing & contact details :

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