Reality Check ! Business Loans in Canada And asset Based Capital Funding

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What works when traditional Canadian business financing doesn’t?

Information on asset based business loans in Canada. 'A B L ' financing provide working capital and cash flow to Canadian businesses who are unable to obtain ' traditional ' financing for operations and growth

You're forgiven. For what? Surely Canadian business owners and financial managers can be forgiven for thinking that there is few, (if any?) capital funding asset based business loans for Canadian business.


Between the global credit crunch, a Canadian recession, and the traditional bank retreating on business credit in every owner or CFO must surely dwell on the potential inability to take advantage of growth and sales opportunities via access to the right amount of working capital and cash flow to satisfy both day to day needs, and of course, that growth.


Asset based lending in essence goes ' under the covers' of your balance sheet - and whats under those covers, assets, not rations or covenants!


By financing those assets in a creative manner that leverages there true value your business is on the road to working capital solutions that you never imagined.


When clients talk to us about asset based business s loans their situations vary dramatically. Industries fall in and our of favor - so firms are experiencing a variety of what we can only term unique situations. What are some of those situations - well they might include stratospheric growth via new purchase orders or contracts, restructuring for a variety of reasons , buyouts or acquisitions , and that old catch all ' the turnaround '.


So is there one solution for all of these major business situations and challenges. We are always hesitant to say that ' one size fits all' but in reality the asset based lending available in Canada is quite frankly the new kid on the block that gains more acceptance everyday .


Why does this solution work better than a traditional one? One of the things we explain to clients is that in effect is a customized solution that takes a hard look at all your assets - those include inventory, A/R, equipment, and in some cases you can actually margin real estate.


So who qualifies and who doesn’t is a typical question asked by business owners. The reality is that larger firms are very closely suited to an asset based line of credit, but a whole second tier of offerings are available for firms who need 250k and up on a monthly basis .


Pricing often becomes a discussion point for this type of working capital and cash flow facility. We quickly point out to clients that although asset based business loans in Canada are more expensive than bank facilities; the reality is that they are custom tailored to your firms ongoing daily cash flow needs. They don’t require ratios and covenants to get the loan facility approved, and guess what, no debt goes on the balance sheet, you are simply monetizing those assets.


Its all about access to capital funding - if the old ways don’t work then clearly you should explore the significant benefits of an asset based line of credit. Speak to a trusted, credible, and experienced business financing advisor who can assist you in navigating the Canadian market.







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.

The Key To Working Capital Financing - Asset Based Lenders

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Wondering how your competition seems to have all the working capital financing they need and you don't - the key to that answer might just be asset based lenders and the asset based lines of credit they offer to Canadian businesses such as yours.

Let's examine how this relatively new and unique method of business financing can totally alter your business financing success.

The acronym for this type of financing is A B L; simply speaking its daily cash flow provide against your current, and sometimes now so current assets. What do we mean by that? Simply that this facility allows you to margin your receivables, inventory, and in most cases, should you choose, fixed assets and real estate.

You are probably saying to yourself that you could arrange financing on your own re those fixed assets and real estate - but we are talking about using those assets as collateral for your daily revolving line of credit. So you aren't borrowing, you are not bringing debt on to your balance sheet, you are just leveraging your ' assets ' (that's the 'A' in ABL!) for daily cash flow and working capital.

And why are we claiming that this type of working capital financing just might be your key to business success. Simply because you have probably found it has been challenging to get the full amount of business credit you need. In some cases you might have discovered its been a challenge to get business lines of credit of any manner.


So if your competitors are using this type of financing today, who exactly is eligible for it, and is your firm a candidate. The answer is simply that if your firm has a combination of 250k in working capital assets you are immediately eligible for asset based lines of credit. We would add that firms with smaller asset sizes can still monetize those receivables via invoice financing or discounting, but that's not our key focus for today's information exchange.

So now you now the offering are out there. But why should you consider it. Simply because your firm might be in one of a number of special situations - that includes issues such as your need for increased daily operating cash, you wish to merge with or finance an acquisition, you have been unable to obtain inventory financing elsewhere, you are growing to quickly for traditional Canadian chartered banking financing, etc! We are pretty sure you get the picture now!

The benefits to this type of business financing must by now be pretty obvious. It's all about access to working capital financing and cash flow that you couldn't access before. Assets that couldn't be financed are now financeable, and inventory financing, previously limited or unavailable now looms on your growth horizon.


Who are these asset based lenders, and what is the cost of this financing? We'll leave that one for another day, but if you want to investigate asset based lines of credit for your firm ( remember, your competitor probably already has ) then speak to a trusted, credible, and experienced Canadian business financing advisor who will assist you with identifying benefits and the best solution for your current strained needs in business finance.







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.







Article Source: http://EzineArticles.com/expert/Stan_Prokop/432698


Article Source: http://EzineArticles.com/5895090





Stan Prokop

Turbo Charge Your Banking Via A Business Line Of Credit ABL Revolver!

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Small, medium or large? We're not talking about a coffee cup size... we're referring to the fact that no matter what your size of business your access to a business line of credit is the lifeblood of your company. That's why an ABL revolver (ABL = asset based line of credit) is potentially the solution to turbo charge your working capital and cash flow.

Let's examine how.
Clients seem to always wrestle with the fact that they don't really understand the differences between this type of business financing and banking as opposed to a 'regular' operating facility with the bank. The differences could not be more dramatic. While a bank facility (by the way, we are all for them also, when they work! ) focuses significantly on your balance sheet ratios and over all profitability, etc the ABL revolver solution hones in on one issue only - your assets and their overall quality and size. It is on that quality and size that the ABL business line of credit is structured.


Borrowing power is what business lines of credit are of course about. When you utilize the ABL approach you in effect leverage all the power of the assets, which certainly isn't like what we like to call ' traditional bank borrowing '

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So, why would a business such as yours want to unlock that borrowing power? The reality is there are some very recurring needs for firms which choose this type of business financing. First of all they either can't get or can't get enough working capital borrowing power against their inventory, receivables and equipment. Secondly, all sorts of other problems, challenges, and yes opportunities can e overcome with an asset based line of credit.


Many examples exist of firms who have doubled and in some cases tripled their business financing access via this type of finance. The answer is simple - it's based on asset size, not ratios and covenants and external collateral.
Those include firms which have large seasonality issues, companies who which to merge with or acquire a competitor on an asset financing basis, and, most commonly, firms that view themselves in turnaround or restructuring mode when it comes to where they are at in their life cycle - i.e. coming out of a challenging economic time or negative business event (operating losses, etc).
Did we just say ' operating losses '?

Yes, the reality is that even firms who are experience operating losses and could otherwise not achieve maximum operating cash flow are excellent candidates for ABL financing. We should mention that the type of facility you get, the pricing on that facility, and how the facility works vary within ABL revolver financing depending on your overall transaction size and asset coverage.


We must never forget also that these type of facilities never bring debt to your balance sheet, you view them similarly as an operating line, in that you are just monetizing your assets for working capital and cash flow - the only difference is you've got tremendous flexibility around borrowing power - because you are borrowing against a base of receivables, inventory, unencumbered equipment, and in some cases real estate also.


In summary ABL revolver financing gives you a full service business financing, its cost effective, addresses almost every financing problem you have had related to cash flow, and is available in facilities from 250k to many millions of dollars.
It somewhat of a secret to many that some of Canada's largest corporations choose this type of financing over a traditional bank facility. Speak to a trusted, credible, and experienced Canadian business financing advisor on why ' ABL ' give you that ' turbo charge' boost in cash flow we've talked about.

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



' Canadian Business Financing With The Intelligent Use Of Experience '

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

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

Stan Prokop





















Article Source: http://EzineArticles.com/expert/Stan_Prokop/432698


Article Source: http://EzineArticles.com/6059576

Is The Asset Based Credit Line And Loan A Threat To Bank Business Lines Of Credit In Canada . You Decide After This!

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Is There A New Triple Threat In Canadian Business Financing?

Information on the business line of credit in Canada . Differences in bank and ABL asset based loan facilities are worth knowing for the Canadian business owner / manager

Not all business owners and financial managers in Canada are familiar with the new (relatively speaking )kid on the block in Canada , the business line of credit know as the ABL , which is basically an asset based loan , non bank in nature .

Is the ABL a real ' triple threat ' when it comes to the alternative, the bank commercial credit facility? We'll let you decide but we’re quite sure you will agree there is a market for both as you will soon see.

Oh, and by the way, the banks agree with us, because many of them, unbeknownst to many, offer their clients both alternatives. Talk about a secret we have let you in on!

So if the ultimate goal of both the ABL and the bank facility is to provide you with revolving credit, how in fact are they different? One way is simply the focus - for the bank its on cash flow and profits, while the ABL facility focuses on... you guessed it, just assets ! While our chartered banks view collateral as a back up to their credit decision the Asset based lender views your assets, the collateral, as pretty well the only back up plan.

The way bank credit lines and ABL facilities behave is partly driven by regulations. That is to say that our strong Canadian banking system is driven by rules and regulations around the amount of funds they have, what they can lend, who they can lend to . Given the fact that our banks are all pretty well public corporations on the stock market we can further imagine all the visibility around their lending that that garners!

And the asset based lender then? Well we are certainly not portraying them as drunken cowboys doing what they want and when they want, but the reality is they are not regulated, are more often than not private firms, and make their own risk ratings and decisions based on management experience and their opinion of your assets - typically A/R, inventory, equipment, and even real estate. All of those components become part of your business credit line.

Here's another little surprise we'll share with you today. When bank loans go bad they are placed in a ' non performing ' part of the banks books, a special place known as ... you guessed it ' SPECIAL LOANS '. Do you know who often refinances these loans and pays out the bank? Surprise! It's the asset based lender!

So when a company is consuming too much cash, rather than generating it the asset based business line of credit is a great business credit solution. So all of a sudden historical cash flow and profits, critical to a bank, are a non issue when you are looking for an ABL facility. Big difference!

Do we criticize our banks for their behavior .Some might, but not us, because Canadian chartered bank solutions deliver the lowest cost based on the risk they are prepared to take.

That brings us of course to pricing. In fact certain ABL business lines of credit are in fact 100% competitive, even lower than bank offerings. However, the majority are in fact priced higher, with the offset being the tremendous amount of additional liquidity and working capital your firm achieves when monetizing assets via an asset based ABL loan.

So, co-existing. Absolutely. Just be prepared to recognize the price, limitations and benefits that your firm is prepared to take one when looking for a true business line of credit. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your business credit decision.

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

Canadian Business Line Of Credit News - Must Know Info on Non - Bank ABL Financing and A Credit Revolver Loan

Why ABL Loans Are A Bank Alternative Financing

Information on ABL Financing in Canada – why is this newer method of non bank credit revolver a better line of business financing and how the operating loan works in asset based finance

Are you totally on top of the newest trend in Canadian business financing these days? Then of course you're fully aware are knowledgeable on ABL Financing for a business credit revolver loan versus the alternative... a bank line of operating credit.

What's that ? You're not? No problem... read on!

No Canadian business owner of financial manager these days disputes with us the challenges of obtaining what everyone seems to call ' traditional bank financing. For all the right reasons (probably ... hopefully?!) Canadian banks hunkered down and tightened the lending strings a bit after the 2008-2009 financial debacle.

Therefore it’s not hard to determine how various specialized funds and independent finance firms came to a high level of prominence by offering ABL financing. A = Asset B= Based L = Loan .. It’s as simple as that.

Do you recognize any parts of the following story ... we think you will. You feel as if you had hit an impasse in expanding your firm. Personal funds have been depleted and your efforts to find that elusive ' traditional ' financing have failed. Additionally your firm might have some real challenges in perhaps returning to profit after you industry has been out of favor with those people in the glass towers that seem to know everything...

Is there really a viable solution to that business financing challenge, i.e. a real world alternative to a bank line and credit revolver loan? Enter asset based financing and asset based lines of credit!

Depending on the size of your facility and the overall financial condition of your firm the cost of ABL financing will either be lower, competitive, or higher than your current finance arrangements. ‘Thanks a lot ' we can hear you say, as that sure wasn’t very informing in nature! But we stand by that comment because of the complexity involved in assessing the size of your financing requirements, the overall credit worthiness of your company, and the mix of financing you need when it comes to ABL financing . The bottom line is simply that every situation is unique and needs to be addressed in that manner.

The essence of our message is hopefully clear - you do have a Canadian business financing alternative, and its a non bank revolving credit revolver , via an independent firm that provides you with very high liquidity rations on key assets such as receivables, inventory, and in many cases fixed assets and a/r.

Do we qualify? is question number 1 or 2 more often and not from clients . The answer in the ABL financing world is that everyone qualifies with only one criteria being required - you have business assets! because that’s what an ABL financing credit revolver is all about . And , as we said, it might be more expensive, and due diligence on your operations and assets might be a bit more rigorous ( in fact it will be for sure - ABL lending focuses on assets , not ratios !).

Whats happening in the Canadian ABL loan marketplace. Lots. Billions of dollars of financing is being accessed everyday by your competitors who are knowledgeable abut this new type of Canadian business financing. And it’s sure cheaper than bringing in additional equity, if in fact that could be arranged.

Interested? Intrigued? Want to know more? Speak to an experienced, trusted, and credible Canadian business financing advisor for the scoop on an ABL loan versus bank line. We guarantee you will be glad you did.




7 Park Avenue Financial :

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

Direct Line = 416 319 5769

Office = 905 829 2653

Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com


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

' Canadian Business Financing With The Intelligent Use Of Experience '

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

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

Stan Prokop

Finance Challenges ? Why An ABL Lender Has Your Canadian Financing Challenge Solved ! An Asset Lending Loan

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Business Line Of Credit ? – Why ABL is the Answer !

Information on ABL lending and financing in Canada . Why this type of finance loan is saving thousands of companies everyday . An Asset based lender can solve your cash flow challenges

Seems strange, don’t you think ? That the same type of financing that could be a solution for taking your company out of special loans might be the same one that can handle your growth financing needs ?

We are talking about ABL - the finance acronym for ' asset based lending ‘. ABL lending is a powerful financing loan (not really a loan per se) but we will get back to that) offered by a unique type of lender in the Canadian marketplace.

How unique are those lenders - we think very! And we're going to demonstrate why, right about now!

ABL lending and financing is a financing facility that is set up to monetize or cash flow your assets. The closest comparison we can offer you to this type of financing is that it is comparable to a Canadian chartered bank operating line of credit and financing facility. But boy are they different.

Your ABL lender sets up a monetization of all your business assets, but typically the key assets are receivables, inventory, and occasionally complimented by equipment and real estate if those latter two are applicable. We can hear you already, because we have heard it from clients a thousand times ' But why is that different from a bank line of credit?"

The answer is simply, the total focus and amount of the facility is actually based on your total assets, and their current values. Bank operating lines on the other hand are pre set limits that are significantly focused on financial ratio, loan covenants, tangible net worth, and outside guarantees and equity. What a difference, right?

So is ABL lending better? Ours is to inform, yours is to decide - but abl financing optimizes the amount of financing you can achieve to the max. It is set up as a base of all your assets, with yourself drawing against those assets on a daily basis. That of course matches perfectly the needs of your company, i.e. the daily inflows , outflows, special bulge needs, large new contracts, overcoming slow collection challenges, etc .

Because the abl solution is always focused on your total asset picture it in effect optimizes your total available working capital. We think you're getting the picture. And getting back to that always comparison against a chartered bank facility your borrowings on a daily basis are managed much in the same way - you use those same established ' borrowing base certificates ' that allow you to drawn down on cash flow and working capital on an ongoing basis.

The bottom line -as sales grow and you generate receivable sand inventory your abl loan financing fluctuates to turn your company into a true cash flow machine.

Some of the key issues you need to address in choosing the ' perfect ' ABL lender are as follows - the size of the facility, what information is required of your firm to set up the facility ( appraisals and operating audits are required ) , the timeline to set up the facility ( typically 2- 7 weeks depending on size and your reporting capability ) and issues such as cost and ongoing reporting and monitoring .

In the U.S. stats show that almost 30% of firms use some form of abl lending and loan financing to finance their firms. We are pretty sure the numbers in Canada are lower, but we sure do think you should determine if this type of financing is your total solution to business finance challenges. Speak to a trusted, credible and experienced Canadian business financing advisor about solving your cash flow challenges - today!



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

Why Canadian ABL Finance & Asset Backed Financing Loans & Lending Are An Important Development

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Asset Based Financing and Lending In Canada

Information on the continuing rise and popularity of ABL finance In Canadian financing

‘A significant consequence ‘. That’s one definition of ' Development '. We think it’s a perfect one for describing how ABL finance and asset back loans and financing are becoming the ' go to ' for business financing in Canada. Let's examine why.

Two key elements make abl financing a step above a traditional bank line of credit with a Canadian chartered bank. Those two elements are ' collateral' and ‘liquidity '. Let’s focus on that for a bit. All asset based lines of credit for business revolve around your asset base. The amount and quality of these assets will drive the ultimate amount of the credit facility you achieve under an asset backed financing.

Canadian business owners and financial manager know only too well that the focus from a traditional bank perspective is not as much on the assets as it is your overall financial picture, which includes the income statement and your ability to meet ratio’s and covenants that are bank designed to protect their lending to your firm. We understand that, and we respect that... it’s just that sometimes it doesnt work for our clients.

Your firm could be in various key stages when you consider ABL loans. You could be a start up, you could be enjoying (and suffering) through hyper growth... and you could be fixing historical financial challenges or suffering thru some sort of business crisis or challenge now. That kind of covers the gamut, don’t you think. Which is exactly why we offer up ABL lending to clients looking for the 21'st century alternative to a business line of credit.

So how is your overall facility determined? It could not be much more straight forward - you borrow, on a daily basis, against the ' true ' value of your assets -hence the work ' asset' in ABL (asset based lending). Those assets typically are your A/R, your various stages of inventory (raw materials, work in process, finished goods) and fixed assets and real estate if that makes sense for your firm. (Those assets must be owned and unencumbered of course).

ABL lending distinguishes itself from traditional bank financing in that the firms offering this type of financing tend to view themselves as experts in ‘asset ' valuation and liquidation . What does that mean to you? Simply that you have just leveraged up your borrowing capacity significantly.

We remember one client who was a wholesale to the dollar store industry who leveraged a 200k bank line into a 2 Million dollar borrowing facility. How? The asset based lending facility had the expertise there to view the true liquidation value of the inventory. Simple as that. As a challenge call your banker up and ask what the margining base is for dollar store inventory and keep us posted on that answer.

A common question from clients involve the long term viability of this type of financing for your firm .First of all there is the cost issue, and here’s where it gets a bit complicated , because ABL loans can be cheaper, the same as, or more expensive than a bank facility . (We’re assuming you can get a bank facility!)

Secondly the ABL industry makes no bones about the fact that it is often a bridge solution for a year or two, allowing you to migrate back to what you consider a ' traditional' financing structure. We point out to clients though that ABL is more often than not the ' new traditional '! Historically it was viewed as distressed or alternative funding, that is absolutely not the case these days, with some of the largest corporations in the world utilizing this type of financing in Canada.

We can’t overstate the flexibility around ABL financing and lending. It covers special issues, seasonality, over advances on what you actually qualify for, and comes at a cost commensurate with any firms overall credit quality. Interested? We hope so. Intrigued? No problem! Consider speaking to a trusted, credible and experienced Canadian business financing advisor on the merits, benefits of the new age of business finance in Canada - ABL finance.

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