3 Ways To Supercharge Access To Business Lines of Credit And Asset Loans

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Innovative Solutions To Working Capital Challenges - We've Got Them !

Information on business lines of credit and asset loans . Numerous strategies are available for your company's cash flow & working capital needs

Canadian business financing
has a new success story when it comes to business lines of credit and asset loans. Although it’s clearly been around for awhile we run into tens of clients who haven’t even heard of the solution, but boy do they know they have a business financing problem! The ' supercharger' we are referring to is an ABL; an asset based business line of credit.


Let's make sure you understand the basics first - and it’s actually quite simple. An ABL facility is a revolving line of credit, which, surprise, surprise, is typically offered by an institution other than a bank! That’s what really surprises some of our clients. These business lines of credit, or asset, or asset loans are credit facilities that support your receivables and inventory, just as they would if your firm qualified or had access to a Canadian chartered bank facility.


Can we add a little more ' supercharging' to the mix - yes we can. The Abl facility can actually include equipment and real estate which can be bundled into the facility if your firm has those assets for additional leverage. So what is happening is that you as a Canadian business owner or financial manager are using your ' asset rich' status and monetizing that into temporary working capital and cash flow. That’s a good thing.


So who in Canada is already ' supercharging' their credit facilities outside of the bank environment? Literally thousands of companies, including some of the largest corporations in Canada. We would point out though that the general lower end of this type of facility typically is 250k, but after that the sky is the limit with respect to transaction size.

There is a common perception out there that this type of financing is for companies that are experiencing financial challenges - and to be fair , because the program is asset based these business lines of credit and asset loans are available to firms who are doing well, and those not doing well or experiencing dire challenges . That accessibility for corporations and industries of all types is what is fueling the asset based line of credit facility growth in Canada.


It's never a perfect world, so we advise clients to expect a higher cost of funds than that of a Canadian bank facility - but at what cost would you pay more for a facility that margined all your assets, including fixed assets and real estate. When proper value is agreed upon with your firm and the asset based lender you can actually margin and utilize cash flow on your unencumbered equipment and equity in real estate.


In summary, first, you can supercharge your working capital and cash flow via an ABL facility, which is a direct alternative to any method you are utilizing today. Secondly, your liquidity could literally double if you are in a position to monetize some of your equipment and or real estate, without taking on any additional debt!

And, thirdly the facility does not exclude any type of firm from applying, so you can take advantage of Canada's newest form of financing today! , thereby accelerating your growth and profits.

Seek out and speak to a trusted , credible and experienced Canadian Business Financing advisor who can assist you with your business funding 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

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

Working Capital & Business Lines of Credit and Loans That Work : Your Must Know Strategy

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Discover These Non Painstaking Solutions To Business Financing Success

OVERVIEW – Information on working capital solutions in Canada. Business lines of credit and the right loans for your business depend on these key factors to financing success

Business lines of credit & the right loans for your business deliver on working capital, cash flow and growth for your company; they can come at a painstaking price it seems sometimes. We're exploring the strategies that allow you to be having business finance success in this area. Let's dig in.

When business owners and financial managers have successfully negotiated working capital facilities or term loans it should not be the end of the story. By that we mean that the business owner and financial mgrs must continually focus on what the bank or other financial institution requires, and more importantly, how lenders view the customer from a control point of view. So how does the lender exert control on your business?

Knowing the balance sheet must be a top focus for the business owner - once a firm is over leveraged, i.e. borrowing too heavily, the bank or commercial lender generally starts positioning around their overall security or your ability to de-leverage.

Borrowers must be comfortable and knowledgeable about the use of 'triggers '. Triggers are the implied actions the bank or institution will take when things aren't working out. This can include everything from general poor financial performance to very specific pre agreed upon financial ratios. And the business owner must remember that he or she agreed to and concurred with these ratios.

Banks want to see cash flow ' flowing ' - flowing to repay their debt - so there may be triggers put in place by the bank to ensure that minimum cash flow standards are kept, and also that owners and shareholders do not withdraw excess funds.

Over time business owners will probably find, in our experience, that the bank restrictions either tighten up or loosen, depending of course on the overall comfort level the bank has with the firm. Clearly firms that seem temporarily challenged in profits and balance sheet quality will receive much more scrutiny.

Business owners can do some very solid and valuable preparatory work in negotiation of bank triggers. If they have a solid long term history of earnings this should be a very strong negotiating point with the institution.

Simply by self introspection of the firm can the owner or financial manager focus on what is going to go wrong re sales, pricing, forex, etc. The owner needs to be able to talk to these issues and show how he could address them. Also remember that those traditional lending sources such as banks are not the only way to finance a business these days.

Other solutions in the alternative sector include:

A/R Financing/ Factoring

Inventory Loans

Purchase Order Financing

Non bank asset based lines of credit

Tax Credit Financing

Sale leasebacks

Using 'what if 'scenarios help immensely and will position yourself as knowledgeable about your business.

Discussions with your bank need not be absolute and immediate on any time of loan negotiation - you can get a great informal sense of what the bank is thinking and work from that point forward. Try and read between the lines as to what is hot, and what a Vis is not with the bank Vis their perception of your firm, industry, etc.

In summary, business owners need to show maximum flexibility on working capital and loan negotiations. Negotiations should be from strength, accentuating the positive.

Example - strong forecast sales and profits can potentially offset a weaker balance sheet. That's when those alternative financials solutions should well be investigated. Trade-offs with the bank are also encouraged- and fewer triggers and covenants are better than more!

And yes, there is more than one bank in the world, although business owners should be cautioned that shopping around is not optimal at all times, and can in fact backfire, particularly for a small business. Business owner beware! And seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can help avoid those painstaking finance errors.


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 .

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

Business Lines Of Credit : Welcome To ABL Asset Lending

Business Credit Line Access – A Solution Nobody Told You About

OVERVIEW – Information on business lines of credit in Canada. The lesser known alternative ‘ ABL ‘ solution is the asset lending fix for working capital needs

Business lines of credit are one of the most solid tools to help companies grow revenues and hopefully...profits. Asset lending , known as ' ABL is the credit line that may in fact give you ' full time' assistance to cover your working capital and cash flow needs. Let's dig in.

The necessity for ongoing cash requirements has business owners always looking ahead to how their business can remain ' liquid’. They are looking for that cushion of help when they really need it. Companies seeking SME Commercial Finance understand very quickly that the bias of banks seems to lean towards larger corporations - while they toil to source financial resources to meet growth needs.

As we have said in the past, thousands of firms in Canada find themselves ' underbanked’. That situation forces them to look at alternatives to traditional Canadian bank financing.

In some case clients we meet are in fact being asked to, shall we say, ' exit ' their bank relationship. At the other end of the spectrum the company is growing so fast traditional financing is unable to meet the needs. In both these cases Asset Based lending offers the solution, albeit almost always at a higher cost and terms.

Those companies wishing to return to prosperity though must consider all options, and the ABL credit line, typically from a non bank commercial finance company is almost always the way out. Naturally some planning is required along the way, including hopefully cash flow and sales projections.

In the majority of cases, ( but not all ) Asset line of credit lenders are looking at ' tougher/more difficult' transactions Here they are focusing on the true collateral in the business - inventory, receivables, fixed assets, and of course sales prospects. In some cases business owners are looking to dramatically increase the ' personal guarantee' aspect of their current financing arrangements.

In almost all cases asset based lines of credit offer ' flexibility ‘. Owners and mgrs utilizing the asset based credit line are focusing on growing the company and ' righting the ship ' from a financial perspective. In some cases these credit facilities can easily finance a merger or acquisition. The real competitiveness in the ABL market today allows companies to choose from a number of firms offering this facility.

If you're looking for a real world focus on business financing intelligence around financing solutions such as ABL business lines of credit seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with you finance needs. who can assist you with you finance needs.









Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info / Contact :

7 PARK AVENUE FINANCIAL = CANADIAN BUSINESS LINES OF CREDIT & ASSET LENDING EXPERTISE



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

The ABL Facility . Is It The Perfect Marriage of Assets And Cash flow When It Comes To Business Lines Of Credit?

Financing Nation! Business Credit Line Worries ?


OVERVIEW – .Information on availability of business lines of credit in Canada. How does the ABL facility compare with Canadian chartered bank lines when it comes to cash flow borrowing

Business lines of credit in Canada . Accessing this type of borrowing facility continues to remain both a goal and a challenge by many businesses of all types and revenue sizes. Let's examine the ABL facility as it compares to Canadian chartered bank credit facilities. They are similar... and they are different.

In many cases we maintain asset based lines of credit are the perfect marriage of assets and cash flow. The Canadian business owner and financial manager is always looking for facts and proper comparison when it comes to making a balanced decision on where the weight of evidence lies on access to working capital credit lines .

They want to know what the issues are, what key technical points must be considered. Additionally they want to know what key issues are and where to go to find the answers. Just common sense.

Let's employ somewhat of a rapid fire method of explaining what we mean. Let's dig in.


The ABL facility is (usually) a non bank way of financing your business line of credit. It allows you to borrow, under one credit line, against all your asses on an ongoing basis. Major assets financed under the credit line include A/R, inventories, fixed assets, and real estate, if that applies.

Asset based credit lines in Canada are getting more popular everyday. They are used by some of the largest corporations in Canada, and start up and emerging companies in all sectors of the economy. They are positioned as a borrowing alternative to the Canadian chartered bank credit line.

If there are two principal advantages of the asset based credit line it is that it substantially increases your borrowing power, and does not come with the ties that bind when it comes to qualifying for a bank credit line.

Public and private companies can access the ABL facility, the borrowing criteria, i.e. your assets, remains the same.

How is borrowing power increased by this method of financing? Easy to explain. Receivables are traditionally margined at 90%, and inventory can be margined anywhere from 25-75%. When you ‘throw in’ the other business assets under the same facility we have easily seen clients achieve 50-100% more borrowing almost immediately. In some cases more!

Monthly reporting is more stringent under the ABL. While a bank typically might request quarterly or annual financial statements the asset based borrower must be prepared to send in monthly receivables, payables, inventory lists, and a balance sheet and income statement. That's a minimum! Over time we have observed this makes the business owner/manager more financial astute, as he or she tends to understand their business better.

Does your firm have a challenge in accessing working capital via a proper line of credit that suits your needs? If it does consider busines lines of credit that come under an ABL facility solution. Why? It works, more companies are doing it every day, and you just might find your competitors are talking about ' the new you ' when it comes to sales and revenue growth, vendor reputation. etc. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your credit line needs.



Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

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

BUSINESS LINES OF CREDIT – THE ABL FACILITY


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