Working Capital Finance Loan Advice – What Business Credit Is Available For Your Firm

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Working Capital and Cash Flow Mechanisms for Canadian Business

Information on working capital finance requirements and solutions for business credit for Canadian businesses . Your business doesn’t need a 'loan ' Do you really need a ' loan ' and are there are alternatives to monetize assets into cash flow . P.S. Yes there are!

Have you checked the patient recently for oxygen and blood status? We're talking of course about your business, i.e.
working capital finance which is a true key measure of business credit health. Does a working capital loan need seem like a necessity as your business grows? Let's examine the why and more importantly the ' how ' of cash flow financing in Canada.

It is not hard to determine why there is such a focus on working capital finance in Canadian business - its simply because your ability to both manage, and access cash flow alternatives become the ultimate measure of short term financial health . We say short term because your overall capital structure and debt / equity relationship are of course the other piece of the business finance puzzle. Today we're focusing on short term health!

You know you are in good shape from a business cash flow perspective when you are in a position to meet your short term obligations - typically those are payables and any loan payments becoming due on a monthly basis within the year. If your cash on hand, receivables and inventory turnover are unable to meet those obligations consistently ... well ... its clear you need a working capital solution.

The reality of course is that cash flow fluctuates, and there are times when you have what is known to bankers as a bulge requirement - it is those times you need that access to working capital we spoke of.

So how do you determine what type of business credit financing you need, and, as importantly, how much. Sophisticated larger firms use the capital budgeting process to determine asset needs and why type of investment is required. It’s essentially the mix in the financing of your company - i.e. owner equity, debt, and financing of current assets, which is our focus - ' working capital'!

The good news about working capital finance is that if it is done properly it doesn’t incur debt, or reduce your owner equity - it just increases cash flow and business credit access. To some extent the term ' loan ' in working capital actually reflects a line of credit scenario, not taking more debt on to your balance sheet.

It is possible though in Canada to get a working capital term loan, for larger and medium size companies this is known as sub debt. Payments are fixed and in general the loan is unsecured and based on your cash flow ability to repay, both historically and projected.

If that is not the solution for your firm, what is then? The other solutions are a true bank operating facility, if, and sometimes that’s a big if, you meet bank criteria for lending. Other real world and more probable solutions for working capital finance business credit are asset based lines of credit , working capital facilities of a non bank nature around your inventory and receivables, or simple receivable financing via an invoice discounting facility.

In summary, working capital cash flow financing is not necessarily a ' loan ' per se, but there are options available for business credit financing in Canada. As we have shown you need to determine when you need that capital and why it’s important to have stand by facilities available. Speak to a trusted, credible and experienced Canadian business financing advisor on sourcing your proper working capital and cash flow needs.






7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com


Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations .

' Canadian Business Financing With The Intelligent Use Of Experience '

ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.



Stan Prokop

Cash Flow Financing ! Problems And Oh Yes Business Solutions !

Two Great Tips On The Cash Flow Conundrum!

Information on cash flow financing solutions and techniques for the Canadian business owner and manager . Problems can be solved via internal techniques and real world working capital tools.

Cash flow financing for your business. We're sharing some solid solutions and tips for business finance problems and challenges.


Whether your financing challenges are temporary, or seem to be occurring all the time the Canadian business owner and financial manager is always looking for a fix to that dilemma. So our focus on strategies and straightforward business financing methods that... you got it... fix the problem.


Tip # 1 - Don't pay anyone! Well we're kidding of course, but a better way of saying what we intended to mean is that you can manage a lot of your cash by using an internal solution... payables management. The trick of course is having key vendors and supplies that value your business and want to work with you to keep your business - somewhat of a classic win / in scenario, don't you think.


The ability to turn your stated 30 day terms into 60 and 90 days with your vendors allows many companies to actually become self financing. That's almost cash flow nirvana - not borrowing and growing your business. It's no secret that some of the largest companies in the world pay firms such as yours slowly just to optimize their corporate cash flow. The nerve of those guys.


Our final point on this technique is simply that you don't want to end up ruining a key supplier / vendor relationship, so a proper sharing of the facts keeping in mind the value of the relationship is critical.


Tip # 2- Accelerate collections, finance receivables, and better yet... do both! When we talk to clients about their cash flow financing challenges it’s often about their customers owing them money and not paying. The internal things you can do to fix this problem are of course to be more firm with collections and enforce your terms. Big companies hold shipments to their clients, so you should not be afraid to also. We'd also consider raising prices to clients that don't pay. Just keeping a constant watch on your days sales outstanding or collection period is going to make you a true ' Master' of business solutions and solving those working capital problems .


You might also want to offer a discount for prompt payment. One key point here is that you need to have some decent gross margins when it comes to offering a typical 2% discount for prompt payment. But don't forget also that you can take those same funds you receive and take discounts with your own suppliers. Another key concept here is to understand your borrowing rates and bench mark them against discounts you might offer for prompt payment

Solutions for cash flow
abound in Canada. It's all about picking the right one for your firm.

They include:


Receivable finance

Working capital term loans

Asset based lines of credit

Business commercial bank facilities

Tax Credit Monetization

Supply Chain Finance

Securitizing your receivables or contracts


Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your business problems via real world solutions.

7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8


Direct Line = 416 319 5769

Office = 905 829 2653

Email = sprokop@7parkavenuefinancial.com

Click here for 7 PARK AVENUE FINANCIAL http://www.7parkavenuefinancial.com


Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations .

' Canadian Business Financing With The Intelligent Use Of Experience '

ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.

Stan Prokop

A Practical Cash Flow Loan ? What Type Of Working Capital Company Can Help Your Canadian Business

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Working Capital and Cash Flow Solutions In Canada

Information  on why a different type of cash flow loan might be the solution to your cash flow needs. What type of working capital company offers this type of facility to Canadian business?

Practical - it refers to good judgment in action. That type of common sense definition is what Canadian business owners and financial managers seek everyday when they are faced with locating a cash flow loan or facility.

And it becomes a bit more complicated when they don’t necessarily know what type of working capital company is the optimal solution for their business needs .Lets shed some light on that subject with real world experience backing it up.

Naturally just the creation of additional sales revenue creates profit for your firm, but it’s clear to every business owner that is simply not enough, given the investment you then have made in current asset accounts such as receivables and inventory.

One Canadian solution available is the conversion of short term debt into long term debt via a working capital term loan. This creates a long term working capital component to your financial structure. Small and medium sizes firms can source this type of solution via a government related bank - larger firms can utilize mezzanine or subordinated debt type financing to accomplish the same goal... only from a larger perspective.

Not often thought of as a cash flow loan, but in reality it is the creation of a sale leaseback for assets your already own. You in effect sell the assets to a lessor or working capital company and create a similar cash flow loan along the lines of the term loan we had reference above. All these solutions achieve the same goal.

Probably the most popular method today of generating cash flow is the sale of receivables via a factoring or securitization type facility. The good news for Canadian business is that this type of financing is available for a 10k solution as well as a 10 Million dollar solution.

We seem to be continually explaining this type of solution to clients, and it’s frankly quite simple to understand. It’s your selling of your receivables as you generate them for cash flow... today. What makes it complicated, and we're not to proud of it we can assure you, is how the working capital company sometimes complicates things around how this whole process works, what it costs, and how it affects your company on a day to day basis.


When you exactly face the decision to go out and look for more working capital. Really it fundamentally comes down to three areas, starting a business, growing your business rapidly, and then simply financing those day to day activities because for some reason cash flow is failing you.

You have clear options in the Canadian business financing environment .Its a questions of knowing those alternatives and determining what is achievable based on your unique needs. Very typical fundamentals you should have under your belt are up to date financials, a strong sense of your cash flow needs (via a cash flow budget) and some ' education' on what facilities are available for a firm of your size and credit quality.

The premier working capital and cash flow loan solutions in Canada are as follows - receivable financing, a working capital facility that combines A/R and inventory, or a true asset based lending arrangement which replaces a bank facility but gives you higher borrowing margins. We of course also touched on the cash flow term loan earlier.

Three more esoteric ( but totally viable ) financing solutions for your business are purchase order financing, inventory loans, and financing your tax credits if you have access to them.

Complicated? It doesn’t have to be. Seek a trusted, credible an experienced Canadian business financing advisor who can assist in clarifying individual solutions to your practical business financing needs.

7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Office = 905 829 2653

Email = sprokop@7parkavenuefinancial.com


Click here for 7 PARK AVENUE FINANCIAL
http://www.7parkavenuefinancial.com


Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations .

' Canadian Business Financing With The Intelligent Use Of Experience '

ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.

Stan Prokop

Asset Based Loan Financing For Business Credit Lines : The Perfect Solution !

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What’s Normal & What’s Important When It Comes To The Perfect Solution For Business Line Of Credit Financing ?






OVERVIEW – Information on asset based loan financing as a business solution for business credit lines in Canada - ' ABL' lines are the alternative to traditional bank financing for firms that can't access any, or all the cash flow and working capital they need

Asset based loan financing can often be the ' perfect solution ' for Canadian business line of credits in the SME sector in Canada. Those small to medium enterprises are often looking for info and guidance on business credit lines. Let's dig in.
Another term for asset financings of this type is ' cash flow factoring ' - in essence you're monetizing your current assets such as receivables and inventory - and turning them into ' CASH FLOW ‘... which we're told is ... king!


So how do the mechanics of this finance solution work? Is it really the solution for your working capital needs?


Let's cover off the basics and find out how you can benefit from this relatively speaking new form of asset financing in Canada. By the way, this method of financing your business is used by startups right up to the largest and most successful companies in Canada - so something must be working.


Simply speaking the facility is a loan arrangement that is drawn down and repaid regularly based on your receivables, inventory, and, if required, equipment and real estate should your firm possess those assets also.


By collateralizing your assets you in effect create an ongoing borrowing base for all your assets - this then fluctuates on a daily basis based on your sales and invoices you generate, inventory you move, and cash you collect from customers.
When you need more working capital you simply draw down on initial funds as covered under your asset base. Simple as that.
The advantage is clear - If you have sales and assets you can get immediate cash. Your receivables and inventory, as they grow, in effect provide you with unlimited financing. Now that's a concept!


The alternative facility for this type of working capital financing is of course a Canadian chartered bank line of credit - that facility always comes with a cap and stringent requirements re your balance sheet and income statement quality and ratios, as well as performance covenants and personal guarantees and outside collateral .

So there is a big difference in the non bank financing we have table for your consideration. But what about those friendly people at the bank - we see them all the time in TV commercials!

You might find the people in the commercials aren't the ones approving your loan needs!


Unlike a Canadian chartered bank financing your business asset based loan financing in effect has no cap. Asset based lenders work with you to manage the facility - and you are required to regularly report on your levels of A/R and inventory, which are the prime underpinnings of the financing.

Smaller firms use a particular subset of this financing, often called factoring or cash flow factoring. This specific type of financing is less transparent to your customers, as the cash flow factor might insist on verifying your invoices with customers, etc. A true asset based loan financing is usually transparent to your customers, which is the way you want it to be - You bill and collect our own invoices. We've called that Confidential Receivable Financing, and it works.


The Canadian asset based financing market is very fragmented and has a combo of U.S., international and Canadian asset finance lenders. They have varying appetites for deal size, how the facility works on a daily basis, and pricing, which can be competitive to banks or significantly higher.


Seek out and speak to a trusted, credible and experienced business financing advisor and determine if the advantages of business asset based loan financing work for your firm.


Stan Prokop - founder of 7 Park Avenue Financial –

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 13 years - Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing. Info & Contact Details :
http://www.7parkavenuefinancial.com

7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769


Office = 905 829 2653

Email = sprokop@7parkavenuefinancial.com

' Canadian Business Financing with the intelligent use of experience '

ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.


Stan Prokop

Solving The Debate About The Business Line Of Credit In Canada : Rates And Other Issues And Alternatives

Stranded In A Business Line Of Credit Wasteland?

OVERVIEW – Information on business line of credit alternatives in Canada. Rates and other factors to consider when working capital and cash flow financing are critical to survival and growth






The business line of credit in Canada is used to finance the growth and operations of your business when that can not be done by owner capital and self financing sufficiency. But many owners/financial managers find themselves in positions where they don’t fully understand the 2 types of business credit facilities, what they cost, and how they work. Let's dig in.

So what are those two alternatives ? Naturally answer # 1 from clients we meet and talk to is of course the Canadian chartered bank credit facility . The other, less common, but more popular everyday is the non bank business line of credit. This facility (not always, but more often than not) cost more, but offers more liquidity, is easier to obtain, and grows with the size of your business assets.

The major qualifier for bank credit lines is pretty simple - good financial statements. Those statements must of course reflect good equity, profits, and reasonable debt load.

If those qualifiers can't be met in their entirety the ' ABL ' asset backed credit line is a very solid option. Common structures for the facility are similar to bank lines - the margining of receivables and inventory. The difference is that you have a much higher ' borrowing base ' around those two assets based on their ongoing values.

Receivables are typically financed at 90% of their value, and inventory, depending on its nature is financed anywhere from 25-75% of its value.

For both types of credit lines the owner/manager can assume that financing charges are only being applied on what is outstanding and utilized by your firm. While bank facilities have fixed approved limits, asset backed credit lines have limits but are easily adjustable if your firm is growing sales and current assets. Note that one other interesting aspect exists with the alternative ' ABL' facility. That aspect includes the financing of your equipment and fixed assets, which are, in effect, bundled into the total credit line.

The business owner/manager can therefore quickly see that the ability to borrow much more on inventory and A/R, as well as using fixed assets for additional borrowing quickly translates into a lot more working capital and cash flow for your business, when you need it.

When your firm utilizes a bank line of credit it's of course all done through one operating account that the bank monitors. In the case of asset based credit facilities various methods can be used to facilitate the actual management of the account. That needs to be addressed because the ABL firm is usually not a bank but a private commercial finance company.

If you feel you're stranded in a ' wasteland ' of lack of credit and working capital alternatives seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can ensure your firm has the ability to access rates , structures and the amount of working capital you require to fund and grow your business.


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 Line Of Credit 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

Financing For Small And Medium Business Enterprises In Canada Hasn’t Disappeared .Good Luck Might Be Around The Corner

What’s The Secret Around The SME When It Comes To Financing?




OVERVIEW – Information on the financing of small and medium enterprises in Canada . Business solutions come from various sources based on needs and qualifications




Financing for small and medium enterprises in Canada is a classic business conundrum. Many clients we talk to believe it simply doesnt exist, in other cases it’s a case of a business life of disappointment. Let's clarify some winning, and well as some losing strategies in the ' SME ' sector in Canada when it comes to raising capital and financing assets for your business. Let's dig in.


Part of the challenge of SME (small medium enterprise) financing is size. Avoiding the obvious ‘is size important’ joke we were reading a column in yesterday’s Canadian business daily. The columnist was touting the benefits of a SMALL CAP (cap = capitalization) company.

Many business owners and financial managers in Canada will be very surprised to know that a small cap stock in Canada is one that has a value of less than several hundred million dollars. Enough said... all of a sudden financing your firm seems even a greater challenge, because it would appear you're not even small cap!

Truth be told though there are thousands, perhaps hundreds of thousands of businesses in Canada in the SME sector with revenues in the 1 - 25 Million dollar range. And guess what? These businesses are growing the Canadian economy, being acquired, and merging with similar firms to get more scale.

Most stats tell us that this is really the backbone of the economy given the big guys don’t seem to be hiring a lot these days, unless you're an outsourcing consultant!

So what are the types of financing that the SME needs, and where can he or she be successful in finding it? Financing needs include term loans, revolving credit facilities, equipment financing, rental solutions, as well as on occasion some equity capital.

The major challenge of SME's in Canada is their ability to access traditional bank financing. Unlike in the U.S. it is extremely difficult for the SME business owner to access the loan products offered to larger established corporations.

The main two traditional financing products offered by banks to the SME sector are the Govt Small Busines Loan which maxes out at 350,000.00$ ( not bad don't you think?) and working capital , term and equipment loans offered by Canada's crown corporation bank.

If there is one bright light in SME Canadian business financing it's the alternatives offered by non bank commercial lenders. Although they are always priced to risk these solutions are varied and include:

Equipment financing
Bridge loans
Sale Leasebacks
Receivables financing
Non bank asset based lines of credit
SR&ED Tax Credit Financing
Franchise finance

The bottom line is that the SME owner doesnt necessarily have to have the external collateral, stellar financial statements, and impeccable personal credit histories that come with traditional financing solutions.

For SME COMMERCIAL FINANCE solutions that make sense for your business seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with the SME conundrum.



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 :

7 Park Avenue Financial = SME Commercial Financing Expertise In Canada






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

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