Why You Should Utilize Asset Based Lenders for a Revolver Line of Credit Facility

Tweet

Information on why a line of credit known as a ' revolver' might be a solid business financing solution via non bank asset based lenders in Canada. How these facilities work and what they cost

Some Canadian business owners and financial managers aren't familiar with the term ' revolver line of credit '. So for clarity purposes it's simply terminology for a business operating line of credit. It revolves, or goes up and down everyday, as your firm collects receivables, pays bills, buys inventory, makes loan payments, etc.

Naturally clients can be forgiven for asking '' What is the difference then for asking why asset based lenders offer a unique, and we think better revolving line of credit than perhaps their Canadian chartered bank can offer.

We're going to cover off the basics of a revolver line of credit via an asset based lending solution with a focus on ' why ' you should this type of business line of credit.

The reality is that asset based lenders are playing a more important role everyday in Canadian business - that's simply because most business owners and financial managers agree that it is more challenging than every to meet their day to day financing needs with bank facilities. That is because banks place more focus on external collateral, operating results that meet their guidelines, and a lack of desire to finance items such as inventories, purchase orders, etc.

The key main reason why you should consider an asset based line of credit is simply that the firms that provide this type of financing specialize in exactly what you need - maximum financing for receivables, inventory, and equipment.

Very typical margining of these current assets in an asset based line of credit with a non bank is 90% of receivables, 50%or more for inventory, and full appraised value of equipment and other fixed assets. We have seen real examples where a revolver line of credit has tripled a firms borrowing power, even at better rates on occasion.

So clients start seeing very quickly why they should be utilizing this type of financing, they just don't know with ' who '. There's where it does get a little tricky, as firms offering this facility are less known than the banks, and are often independent finance firms of subsidiaries of U.S. banks that operate here in Canada. There is when its best to seek the services of a trusted, credible and experienced business financing advisor to match your needs with the right asset based financing solution.

Let's summarize some key points that focus on the real issue we are talking about - why you should consider asset based lenders for your day to day operating needs.

First of all, size doesn't matter in the asset based finance world. Facilities from 100k to many millions of dollars are available. We'll quickly add that some of Canada's largest corporations are financed by this method, we just don't hear about it!

Other reasons why you should consider this type of Canadian business financing are as follows: you are in a turnaround situation, you can't get equipment and inventory financing that you need to generate sales and profit. Other reasons include your growth - in some bank environments you are punished for growing too quickly, but asset based lenders raise your facility as you grow, with their only concern being the assets you have to cover the facility.

Make sense? We think it does, so speak to an expert business financing advisor on what the merits of a revolver line of credit are, and find out why asset based lenders may be your business finance savior in the current business financing environment.

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












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

Article Source: http://EzineArticles.com/5849612

Business Financing For Term Loans & Line Of Credit : Inside The World Of SME Finance Choices For Canadian Business Owners

Whatever Happened To Good Old Fashioned Business Financing Choices For Your Company? We Think We Know

OVERVIEW – Information on business financing in Canada. Whether it’s term loans or a revolving line of credit the choices for owners and financial managers are numerous

Business financing choices for term loans or a line of credit often seem like huge hurdles when it comes to funding accessibility for owners/financial mgrs. They will often lament the lack of choices in cash flow and capital solutions. Our thoughts? In fact you probably have more choices today than you ever did for your cash needs! Let's dig in.

Is there ever a time when a company doesn’t need funds. Whether it's acquiring new assets, considering expansion into new markets or products, or simply paying daily operating expenses there’s always a need for financing solutions.

Your timeframe of reference is critical to assessing and acquiring your financing solutions. Typical timeframes are of course ' short term' for daily needs such as a line of credit, or ' long term ' as it relates to capital assets or investments in R&D. In the long term you might be considering simply refinancing your current business is funded - that perpetual mix of owner equity and debt - and the right combination of those two.

In the middle there are often' bridge loan' needs for a variety of circumstances. These solutions can fill the gap that comes from the dynamic changes in your business.

From small business perspective, many firms are in start up or early stages, The Govt of Canada has one of the best programs that thousands of firms utilize every year. This loan is now up to $1,000,000.00 in loan cap, provides a govt guarantee to your bank for 90% of your loan , and comes with great rates and flexibility that even some more traditional forms of financing can't deliver on , i.e. no penalty pre-payment, longer terms, etc.

As we've stated, there is a ' new normal ' in Canadian business financing. That new normal includes the rise of numerous alternative finance solutions. Those combined with traditional bank financing offer a large slate of funding solutions.

Looking for a simple list of business financing solutions available to your firm? Here they are!

A/R Financing/ Invoice Factoring/ Confidential Receivable Financing

Inventory Loans

Bank credit lines

Non bank asset based revolving credit lines

Govt Guaranteed Business Loans

Tax Credit Financing (SR&ED / FILM)

P O / Contract Financing

Equipment Financing

Unsecured cash flow loans/ Mezzanine financing

Franchise Loans

Sale Leasebacks

Royalty Financing

This broad range of financing solutions allows your firm to grow, hire people, and become key players in their industry.


To implement any financial solution you need to understand where your ' financing gaps' are and which solutions will work when it comes to either taking on debt or simply monetizing your assets to the maximum , while still employing prudent leverage.

Are you aware of all your financing choices? If not seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your loan and line of credit 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


' 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 Loans And A Line Of Credit : Checking Out Asset Lending Is Worth It

The Unboxing Of A New Type Of Business Credit Line

OVERVIEW – Information on ‘ ABL ‘ – The asset based lending solution for a corporate line of credit . Not all business loans and revolving facilities are created equal and offer the same benefits . Here’s an alternative solution that makes sense for thousands of business owners in Canada

Business loans , when it comes to a line of credit provide owners/financial managers with the challenge of financing working capital needs. While the majority of companies in the SME sector want to rely on Canadian chartered banks for these needs ' Asset Lending' has emerged as an alternate - and quite often easier to achieve. We're ' unboxing ‘ABL (asset based lending) for your consideration. Let's dig in.

The easiest way to think of an asset based credit line is to simply take a look at your balance sheet. The total assets you have in receivables, inventory and equipment are essentially your ' box' of assets that are margined under a new separate non bank line of credit facility. ( While banks also offer this type of lending more often than not it's for transactions in the 5-10 Million dollar range and up, obviously eliminating many firms in the SME sector who typically have revenues in that range, not assets!)

So while our banks focus on what they do best - addressing cash flow and risk and outside collateral and guarantees, the asset lending model looks to the main source of fluctuating repayment - your sales and your assets. (Sales create receivables) The majority of asset loans tend to reflect a higher amount of risk as companies in the SME sector ( Most define this as firms with under 25 Million $ in sales ) typically present a higher risk rating when it comes to overall credit quality .

While asset based lending solves problems of high growth and erratic profits and balance sheet structures it also can address problems such as financial distress. Notably it is also used in many situations in acquisition financing, as it allows you to monetize the assets of the target firm.

How does the asset lender offering these types of business lines of credit then manage the overall risk - allowing them at the same time to offer higher levels of financing than you typically could achieve from a bank? The answer - specialized knowledge of the true value of your assets as well as placing a higher value on more regular reporting of asset categories such as a/r, inventory , and equipment values .

Equipment becomes a component of your credit facility, and is almost always subject to an appraisal. Rarely will a bank lend against fixed assets as a part of your revolving credit line - the asset based lender will.

Successful business owners/mgr's will always be open to checking out newer forms of financing that might assist in growth and profits. If you're looking to ' unbox’ new types of business credit alternatives seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your needs.

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 . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN BUSINESS LINE OF CREDIT AND LOAN 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

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

Working Capital Line Of Credit Should Not Be A Blue Moon Event

Beat Rejection And Tragedy With Cash Flow Solutions That Work



OVERVIEW – Information on achieving a working capital solution and the right type of business line of credit in Canada




Working Capital , in our humble opinion, shouldn’t be a ' Blue Moon ' event.

That's of course a term used to mean a ‘rare event ‘, and unfortunately a lot of Canadian businesses view their search for a line of business line of credit as somewhat of a search for that ' rare event '. We don't think it has to be that way, so let's dig in.


Not a lot of people disagree with Warren Buffett; one of his many favourite sayings is simply that ' it's all about the cash '. So when we sit down with a lot of clients for an initial conversation we find it interesting that a lot of the talk seems to revolve around sales, profits, debt, equity, etc, but not always about cash flow and working capital. Therein lies the problem.

So while others, including the business owner and financial manager themselves measure their competitiveness and success by sales, profits, etc let's not forget Mr. Buffett’s

focus - cash flow.

Companies such as yours generate cash by asset turnover, and the way you measure, finance and manage and analyze that cash turnover will ultimately be your success.

What are the ways that companies in Canada finance receivables?

The best and most common solutions are as follows:

Canadian commercial bank lines of credit

Receivable financing non bank facilities - aka ' factoring' 'invoice discounting ' ' Confidential receivable non bank financing ' (the latter being our favourite for clients unable to access bank finance)

Asset based lines of credit

Tax credit financing (SR&ED, etc)

Securitization

So what in fact are those ' cash flow drivers’? One of them is of course accounts receivable. Not necessarily the amount of investment you have in A/R, (although that’s important also) but the timing of those inflows of customer receipts.

When business owners, and dare say it, even financial managers review their accountant or internally prepared financials they always tend to focus on the balance sheet or income statement . The 3rd part of the financial statement is the cash flow statement, and because of its technical nature many owners /mangers fail to grasp how it measures your business success. ( It shows what funds came in, went out, as well as the changes in the working capital accounts of receivables and inventory )

Here's a tip on that cash flow statement. Believe it or not some of the smartest financial analysts around tend to read any financial statement by first reading the footnotes to the financials, and then looking at the cash flow statement. By that time they have figured out a lot more about your company than you'd be surprised!

The other key thing about cash flow that's worth discussing when it comes to a business line of credit is simply the fluctuations in cash flow and working capital needs. In some months collections are great, in some they are not, and in those same months you might have larger outflows to suppliers, etc. Sales revenue rarely go up in straight line. So it is often impossible unless you track your sales and A/R trends to anticipate perfect cash flow needs. But you should still try.

Don't underestimate the need for cash flow focus and the use of the right type of line of credit for your firm. That effort allows you to avoid the tragedy and rejection feeling that comes from working capital shortages. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in your working capital 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 :


7 PAR AVENUE FINANCIAL = WORKING CAPITAL AND BUSINESS LINE OF CREDIT SOLUTIONS







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

Get Rid Of Business Line Of Credit Phobia . Why Asset Based Lending Via An ABL LOC Works !

Business Credit Lines In Canada . Are There Options?



OVERVIEW – Information on the business line of credit known as ABL Asset Based Lending facilities . Why this credit facility eliminates business financing fears.



The business line of credit. Many entrepreneurs often fail to achieve the financing they need if not for the reason that they simply have a bit of a phobia

around the issue. We're told that a phobia is an ' irrational fear of a specific object or activity ... leading to a compelling desire to avoid it '.
Unfortunately , we can't afford to Not address business financing!

Could that be the case with many Canadian business owners and financial managers? In discussions with them we certainly think that might be the situation . Let's try and cure that phobia. And the way in which we think we can demonstrate that is to show you that your firm is in fact very viable when it comes to business financing - it's just that you might not know where to go and what sources of lending might be optimal for your firm.

Enter the ABL , which is an asset based lending arrangement that mirrors in daily activity a commercial bank line of credit - its simply a bit easier to achieve and in many cases delivers more . That's what Canadian business financing is all about, right?

We often feel that Canadian businesses don't achieve the bank financing they need because the requirements of such a facility, as low priced as it is, are simply too narrow to allow your business to ' fit in’. Your firm needs to fit what the finance and credit folks call ' THE BOX '- If you don't fit you don't belong.

Bank commercial credit lines, as opposed to our ABL solution , require that you can produce sound financials- Repayment is clearly linked to your balance sheet and cash flow. While the approval process in Canadian banking can only be described as somewhat... shall we say ' rigorous' (as opposed to painful?) The reality is of course that the low rates associated with bank financing alone make that journey often worth it and Canadian banks are among the best on the planet .

So if you can pass the financial tests such as debt to equity, cash flow coverage, profitability, etc it’s definitely with it to purse Canadian chartered bank lines of credit. In the old days we spoke of the 5 C's of bank credit approval. They included your personal character and finances, cash flow capacity, collateral company and personal, capital or equity, and, dare we finish with ' comfort and confidence ' by the bank in you or your company.

But what happens when your business can't meet bank criteria? The reality is that an asset based lending solution, commonly known as an ABL line of credit is in fact the perfect solution you were looking for - you just didn’t know it existed.

Asset based credit lines are more often than not delivered by commercial non bank finance companies. The facilities revolve, just like the bank line, and the total focus of getting approved revolves solely around the value of the business assets. And what are those assets? They include receivable, inventory, fixed assets, and even real estate if that is in your company asset mix.

The ABL facility is most appropriate for firms that have assets, can’t get Canadian bank financing, and are experiencing situations such as high growth, turn around, temporary under capitalization, etc.

Asset based lending lines of credit are sometimes priced the same as bank lines if you have a large facility in the 5-10 Million dollar range, but the majority of facilities range from 250k and upwards , and are priced higher thank bank rates. If you have good assets and can produce proper financial reporting on items such as receivables and inventory you are in a position to get approved - fairly quickly all things being equal.

Have we cured that phobia about being able to get a proper business line of credit in place? We hope so. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your financing needs, and give your real scoop on ' ABL '.

7 PARK AVENUE FINANCIAL
CANADIAN BUSINESS LINE 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 :

http://www.7parkavenuefinancial.com/abl-line-of-credit-asset-based-lending-business.html




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

Can ABL Finance Eliminate Sleepless Nights ? Here’s How An Asset Based Lending Business Line Of Credit Can Help

Looking For A Solid Business Line Of Credit?


Information on why ABL asset based lending is the business line of credit of choice for Canadian firms looking for business credit alternatives .



A cure for sleeplessness? Well, we're not really saying that ABL asset based lending via its business line of credit facility is your cure to what we might term as ' business insomnia ', but we do meet many Canadian business owners and financial managers who profess to have some sleepless nights worrying about how to finance their business on an ongoing basis .


So why then is an ABL facility a solution to less worrying about Canadian business financing. It's important therefore to understand what asset based lending vis a vis a business credit line is, and why it's getting more broad appeal everyday in Canada.

ABL is a secured credit facility collateralized against various assets of your firm. You essentially borrow against all those assets under that collateral facility. So the question then begs to be asked, ' why is this any different than a facility from a Canadian chartered bank?" It's a reasonable question, and the answer we guess is two words ' more ' and ' easier. By that we mean that 9.9 times out of ten you are going to be able to achieve much more liquidity under an asset based business line of credit. And with respect to ' easier ' the asset based lender focuses on assets, not cash flows, covenants, ratios, outside collateral, etc.

The assets that you typically borrow against are inventory; accounts receivable and any fixed assets such as plant, machinery, etc that aren't already encumbered by another lender or lessor.

How then does this business credit facility generate more financing for your firm, or perhaps a better expression is the potential ability to generate additional cash flow . The answer is that it's all in the margin, because typically your business A/R is margined at 90%, unlike the bank 75%. Inventory and assets are appraised at the commencement of your facility and you can enjoy significant draw down ability with them anywhere typically form 0-70%. (Every business/industry is a little different, so borrowings differ according to type of inventory, asset, industry, etc)

Essentially, as we have demonstrated, the assets in your businesS form the borrowing base for all ongoing borrowings. You can hopefully immediately see that you have much greater access to liquidity and that as your business grows so does your facility. Clearly we have demonstrated that your sales growth is automatically funded by that commensurate growth in client receivables and inventory if in fact your firm has an industry position.

There are various technical aspects to how your ABL business line of credit is monitored and funded. Areas of concern to the ABL lender include warranty returns, credit notes, and inventory composition re raw materials, work in process, finished goods, etc.

We strongly encourage you to take a hard look at ABL credit as your key working capital revolving facility. Will you sleep better? We hope so, knowing that your business is financed properly and poised for growth and profits. Speak to a trusted, credible an experienced Canadian business financing advisor today.

Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :


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

Early Warning Signs You Need A Canadian ABL Asset Based Finance Facility Line Of Credit

A Canadian Business Line Of Credit To Meet Your Needs


Information on the ABL asset based financed facility . Why this business line of credit outperforms for Canadian business .





As a business owner or financial manager you want to be able to ensure that a business line of credit has the ability to assist your firm before, during and after serious financial challenges occur. That's where the ABL asset based finance facility comes in.

In a perfect world (we know it's not) you want to be able to detect financial challenges, understand why they happen, and then implement a solution to avoid them. Understanding the problem (or problems) allows you to make the difficult decisions to continue your business successfully.

So what kind of problems can in fact your business run into. From our experience some are obvious and others not so obvious. And more importantly is there one specific business strategy; in our case today the ABL asset based line of credit that can in fact help you execute the turnaround.

There are probably 5 major early warning signs that your firm might need an alternative financing solution.

So what are some of those early warning signals? They are as follows:

1. Too much short term debt

2. You're trapped in a vicious cash flow cycle

3. You've accumulated current assets that have little or no value (example: obsolete inventories, poor receivables)

4. Your investment in fixed assets has put a major strain on your liquidity

5. Your firm is trying to find itself as it struggles to makes sales projections without the proper assets and financing to back up that growth

So whether your company has purposely created some of these challenges or whether external market forces have the good news in fact is there is a solution, and the one we are recommending today is the ABL facility. It's a busines line of credit like no other.

The ABL business line of credit differs from a bank facility in that you have the ability to margin, at very solid levels your current and fixed assets, all in the form of a revolving business line of credit.

Typically the liquidity provided by this facility gives you access to much more cash flow and working capital, and at the same time isn't punishing your firm by forcing you to totally focus on meeting ratios, covenants, and even provide outside collateral.

That is to say the ABL revolver facility allows you to continue to operate, probably with much more liquidity in spit of your capital structure, your historical challenges or financial losses, etc.

In Canada ABL facilities are typically provided by non regulated commercial finance firms. The ultimate irony we've observed over the years is that the Canada's chartered banks themselves, recognizing limitations of traditional facilities, have themselves even ventured into this ' non- bank ' financing idea. Now that's business irony.

If you want a solid insight into some of the early warning signs that your current financing strategies arent working speak to a trusted, credible and experienced Canadian business financing advisor about the possible solution to those upcoming or existing challenges.







Stan Prokop - founder of 7 Park Avenue Financial –


http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :


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

If Things Are So Bad Why Is a Canadian ABL Facility Business Line Of Credit So Good ? How Asset based Lenders Work

The Worse Your Financing Challenges The More An Asset Based Line Of Credit Should Appeal To Your Company

Information on why and ABL facility from Canadian asset based lenders and why this type of business line of credit is extraordinary in terms of delivering more financing to Canadian business .



Does it every get easy? It's probably just us but doesn’t it seem like there’s never a time when there isn’t some major economic turmoil these days that simply add to the constant challenge of being able to be successful in business financing for your firm.

That’s why an ABL facility... a business line of credit from asset based lenders is very much a total breath of fresh air. With the Canadian economy see sawing back and forth between good news and bad news the likelihood of your company getting the business credit it needs is never 100%.So is there a way to improve those odds? We think there is, and it’s an asset based line of credit, the technical term being ABL.

It is somewhat ironic that the asset based lender actually tends to do better in more difficult times - that’s easy to understand because the unique facility it offers has a much higher chance of approval for firms such as yours. And, as always, it’s about the assets, not the ratios. Coupled with the fact that the industry in Canada, relatively speaking is still quite new and somewhat fragmented , well , bottom line, its just seems to get more traction everyday.

Stats in other countries , and we think they are reflective of Canada also , show that 80-90 % of the firms that utilize asset based lending for their business line of credit are in fact small to medium sized corporations . It is sometimes overlooked that some of the biggest corporations in Canada also use this type of financing, abandoning the traditional Canadian chartered bank line of credit.


When we meet with clients to discuss their needs for an ABL facility it's often necessary to spend a bit of time explaining some of the mis information that exists with this type of facility. That is partly because this type of lending has some subsets, they include receivable financing, and in some cases purchase order financing.

The key benefit of an ABL business line of credit always comes back to one word - ' margining '. Typically this type of revolving facility margins 90% of receivables and anywhere from 30-75% of inventory, depending on the type of inventory your firm carries/requires.

Additionally, the key difference in the facility is the fact that your business access to working capital and cash flow grows with your needs, pretty well automatically! Now that’s the type of borrowing facility that every business owner dreams about!

So, when the bank is not the solution, (those hoops keep getting more difficult to jump all the time!) and your company is either reluctant or unable to raise additional equity speak to a trusted, credible and experienced Canadian business financing advisor on the benefits and requirements for an ABL business line of credit.






Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com


Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing .Info re: Canadian business financing & contact details :


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

Canadian Asset Based Finance Has All The Best Ingredients For A Business Line Of Credit – Business Receivables Financing

A winning strategy for business lines of credit in Canada


Information on asset based finance facilities in Canada – Why ABL working capital facilities are a solid line of credit solution for business receivables, inventory and equipment finance.



Asset based finance is a solid working capital solution for a business line of credit as an alternative to bank financing. An ABL (asset based lending) line of credit provides an operating line of credit facility for a combination of both receivables and inventory. This can be achieved in Canada via a traditional receivable financing facility for firms that have both domestic and out of country receivables.

Often times this type of facility provides cash flow when your company is growing, or perhaps wants to acquire another firm... even a competitor. If we had to label many clients that are searching for the right asset based finance facility we would quite frankly put them in the category of being in a turnaround or restructuring situation.

Proceeds from this facility can be viewed in many positive ways, one of which is to simply give you leverage and negotiating power with suppliers for pricing and discounts ... and why? Because you now have cash flow that allows you to buy smarter, purchase larger quantities of materials - all of which are on top of your new found ability to feel more comfortable about day to day financial burdens such as payables, salaries/wages , etc.

Many Canadian companies that approached asset based finance solutions have often exhausted traditional financial solutions. We stress to clients that asset based finance solutions are the last thing from ' lending of last resort '. In fact they in some cases can be more cost effective, and almost 99% of the time, in our experience, provides clients with more liquidity and access to capital.

And don’t forget also that when you approach asset based finance from a business receivables or inventory financing point of view you are no longer forced to consider scenarios such as raising additional equity and diluting ownership .. and that’s a good thing if you're a business owner in Canada.

So how exactly do asset based finance solutions provide that much more liquidity, than say... a traditional Canadian chartered bank line of credit. They do that by margining you receivables at higher levels, or margin rates that banks, and also include additional borrowing on that same facility based on inventory, equipment and real estate, all of which are rolled into one day today borrowing facility.

In order to qualify for this type of financing it becomes a question of controls and reporting. Your firm should be in a position to report on an on going basis on aged receivables, payables, inventory counts, etc. It's that level of business control that will get your firm the highest asset based finance facility.

Look at business receivables financing via an ABL facility as a type of financing that becomes the bridge for your firm to either move to a Canadian chartered bank facility or a true tier one ABL facility with comparable bank rates and structures.

When you are not aware of all the possibilities available to your firm for a business line of credit option speak to a trusted, credible and experienced Canadian business financing advisor who can help you reach the higher ground in asset based financing in Canada.



7 PARK AVENUE FINANCIAL

Canadian Business Financing

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