ABL Commercial Credit Lines Work - Why Asset Based Lenders Are Your Business FInancing Choice

Climb Aboard A New Way To Finance Your Business


Information on asset based lenders in Canada . Why are ABL commercial credit lines what you have been looking for in Canadian Business Financing .


ABL (Asset Based Lending) commercial credit lines from asset based lenders in Canada are providing tangible proof everyday that they are both an alternative or a first choice for Canadian companies seeking operating and working capital financing.

Let’s look at a documented example of how this facility helped one company. Although our example profiled is a U.S. firm we can assure readers that all comments and data apply to the Canadian business environment.

In our example the company was an importer and distributor, but the reality is that ABL commercial credit lines financing applies to numerous industries, in fact any industry that has receivables, inventories and assets.

So what did the ABL facility in fact do for this firm? It became a business line of credit that was able to ensure the company could grow outside of its sustainable growth rate (the growth rate at which a firm can expand without borrowing based on its current cash operating cycle).

Funds from the asset based line of credit were used, in our example to also reduce long term debt. Simply speaking the company was able to monetize current assets, get more liquidity by doing this, and reduce long term debt - enhancing their balance sheet ratios at the same time.

Many companies in Canada find themselves in the unfortunate position of being delinquent or behind on government source deductions. These arrears are viewed seriously by any lending institution, and in Canada place a severe responsibility on the owners and directors of a company. In many cases, including our example the additional liquidity you get from asset based lenders is used to pay off those government arrears and source deductions which have built up.

Naturally in any company supplier relations and the amount of your payables play a key role in your firms viability. Borrowing facilities from asset based lenders allow you to reduce payables and maintain better supplier relations.

ABL is the therefore the new alternative and are commercial credit lines of choice by Canadian firms of all sizes. Speak to a trusted, credible and experienced Canadian business financing advisor in this area of business financing to ensure the benefits of this financing can pay off for your firm.




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 .Info re: Canadian business financing & contact details :

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

Understanding Canadian Working Capital Finance – Cash Flow and Institutional Loans & Private Lenders

Commercial Business Cash Flow Financing In Canada

Information on working capital finance options in Canada . What offerings are available from banks and private lenders when you need business loans or cash flow financing.



Having the right information simply becomes a small investment of your time and can turn into tremendous benefits... that are why your ability to understand working capital finance loans from both private lenders and other institutions is noteworthy.

When Canadian business owners and financial managers think in terms of capital typically Canadian chartered banks come to mind. That’s what business people tend to call traditional financing in Canada. But is it always readily available and possible to obtain? Many businesses find themselves in the position of needing to grow, or in some cases simply survive around the need for extra cash flow and liquidity.

The optimal solution is of course simple - have some sort of facility in place to access cash... when you need it! Two choices come to mind - a traditional working capital term loan from a bank - its essentially long term working capital with fixed monthly payments. Alternatively, and in many cases the better option, a non bank facility from private lenders is a better, if not more accessible solution.

And to be clear, let’s define ' private lenders' as that term is often mis understood in the context of a Canadian working capital loan. It may mean other things to you, but in our discussion today we are simply referring to a non bank entity, quite often a commercial finance firm that has a specialized niche in business lending and working capital.

What facilities are offered by these ' private lenders' if we can call them that? They include offerings such as receivables purchasing, working capital facilities that combine the borrowing ability of your inventory and receivables into one facility. Essentially a business line of credit from a non bank entity. Other offerings, somewhat more specialized include purchase order and contract financing, tax credit financing, and what we call the ' big kahuna ' of working capital cash flow financing in Canada - ABL (Asset based lending).

When we think of the facilities as describe above we're talking about the ' current assets ' part of your balance sheet - that’s where the liquidity lies.

Working capital outflows though can also be stemmed by utilizing lease financing or a sale leaseback strategy... that’s for your fixed assets of course.

Thousands of retail businesses in Canada often find themselves in the working capital finance conundrum. In recent years merchant cash advances, or loans against future sales have become a solution for the smaller retail business.

Advantages of a bank loan for working capital purposes are pretty clear - it enhances your commercial credit history, rates are the lowest and most desirable.

So the essence of your subject today is that you're in effect surrounded by working capital finance and loan options from both private lenders and Canadian chartered banks. It's a question of knowing what those sources are, and, most importantly... which one works best for your firm, whether you're a small retail business or a small to medium sized established corporations. (The big boys do quite well on their own, thank you).

Permanent or temporary solutions are available in many forms, as we have noted.Speak to an experienced, trusted, and credible Canadian business financing advisor who can ensure your working capital sources are just steps away.



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 .Info re: Canadian business financing & contact details :

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

Let Equipment Leasing Finance Be Your Forward Momentum for Asset Financing – Use Lease Companies Today More Than Ever

In Uncertain Times Let Equipment Lease Finance Be Your Sure Thing Asset Financing

Information on equipment leasing finance in Canada . How lease companies and accelerate your asset financing needs.


A condition of advancement. That’s how ' forward ' is defined, and isn’t that whats it’s all about in business and competition. And acquiring assets via equipment leasing finance categorically moves your company forward. It’s the proper use of lease companies in asset finance that we'll examine, with a focus on ' why ‘!

Canadian business owners and financial managers do best when they view asset financing via equipment leasing finance as a ' tool '. It's utilizing that tool to leverage assets for your business sales and profit growth that makes lease companies the logical solution for fixed asset acquisition.

So for what type of asset does equipment finance not work? Quite frankly we cant think of one - whether its the new kid on the block - energy assets , or manufacturing, chemicals, food, planes, construction, auto , public infrastructure ... well .. we think you get the story. All assets can be financed, simple as that.

Whats so hard about understanding the value that lease companies bring to your firms table? It's a simple case of you ensuring you have chose then right asset, and that asset then being purchased on your behalf .. ensuring your ability to profit and grow from the use of the asset.

But that’s not all of course, because the inherent flexibility that comes with leasing gives you the right to acquire the ownership of the asset depending on what type of lease you construct and on what terms.

Advantages of this method of asset acquisition are fairly well known. You are in effect matching the outlays of cash for the lease to the benefits you will derive from the asset. The Canadian lease financing marketplace is on a total roll in 2011 and the asset finance industry is ready for business, yours! Interest rates are low, lease rates are ultra competitive and in many cases can even match bank financing, especially when you consider the processes and collateral you might be required to go through via a bank term loan for an asset .

2 to 5. What do we mean by that? Simply that that’s the typical duration of an asset lease in Canada - anywhere from two years to five years. We can’t remember when we have seen a lease term less than two years, because it simply doesn’t make sense for lease companies - although on occasion 7 and 10 year terms are available for certain asset classes... think heavy constructionb, aircraft, infrastructure, etc.

Clients can be forgiven for usually focusing only on the cash and working capital preservation aspects of equipment leasing finance .If you have limited capital, or don’t wish to disturb other financing you have in place leasing makes sense. Yes it’s true, this method of financing doesn’t deliver cash to your company, but it sure prevents it from leaving quickly... and in large amounts.

It’s of course an understatement to say that we’re doing business in a tech driven environment, so computers, telecom, and other tech assets lend themselves perfectly to equipment finance.

If you're concerned or simply want to become better informed about how to go about achieving the best benefits of this financing vehicle speak to an experienced, trusted and credible Canadian business financing advisor who can assist you in ensuring you're ' moving forward ' via this valuable tool in Canadian business financing.



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 .Info re: Canadian business financing & contact details :

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

10 Considerations For Equipment Leasing and Lease Financing In Canada – From Start to Buyout !

Use This Savvy Expertise To Master Equipment Lease Success For Your Company


Contrary to what Canadian business owners and financial managers might think it’s not always about the approval and the rate in lease financing in Canada. Let’s look at ten (yes ten!) other things you need to consider, from the start of an equipment leasing transaction to the end or buyout!

There a number of terms and issues that play a key role in the overalls structure and proper documentation of an equipt. lease in Canada. In some cases they should be viewed as your rights, in some it’s critical you understand your obligations.

Let’s dig in. In Canada the customary point of a starting to an equipment lease is essentially when you the lessee have signed off on an acceptance certificate. Your signature on that document should mean that you are prepared to start payments on the lease, which in Canada typically range from 36- 60 months, with some exceptions based on asset type and your overall firms credit quality. By signing the acceptance it’s critical you understand that you have deemed the asset in good working order, as often times the lease company is not the vendor you have worked with, they are just the financier.

Lease terms as we said are typically 3-5 years in Canada. Many clients fail to recognize they sometimes have flexibility in adjusting payments to a quarterly or semi annual basis - dont always think in terms of monthly payments when you are adjusting your cash flow budgets.


In many instances, certainly for larger transactions you may be asked to provide a certificate of incumbency on the transaction - simply speaking that’s just your firms statement that the signing officer on the lease can obligate the company for this particular transaction.

Warranties on an equipment leasing transaction in Canada. As we stated in the majority of cases, unless you are dealing with a captive finance co owned by your vendor the lease company is just financing the transaction - so they are concerned solely with payment, not functionality of your asset. So ensure you have a solid understanding with the vendor on maintenance, warranties, etc., because; ask we said, these often should not involve the lease financing firm.

Although your asset is leased you should consider that it be properly maintained. In certain asset categories you might be asked to adhere to a specific level of maintenance, also relating to the fact that on return of the asset the lessor might in fact re lease or sell the equipment.

We aren’t big fans of leasing companies in Canada placing ' stickers' or other asset ownership references on the assets you lease. In some cases lessors might insist, but in general we feel clients can negotiate strongly on this point, especially if your firms overall credit quality is strong.

A certificate of insurance is generally required for any equipment leasing transaction, or even a term loan, in Canada. Your insurance broker will typically be very familiar with a standard form that lists the lease financing firm as ' loss payee' in the even of any unfortunate incident, i.e. fire, theft, etc.

End of term. Only a three word phrase but boy is it important in Canadian equipment leasing financing. These three words can make or break you when it comes to ensuring the lease transaction you entered into brought benefits to your firm. The basics around this issue are as follows - ensure you know how to terminate the lease from a legal obligation point of view. If you have entered into an operating lease understand clearly your ability to terminate, return, extend, or upgrade. In technology financing this is all important, but equally important to other asset categories also.

In Canada some lease companies will want a right of first refusal on all your business. We'll be very clear on our feeling on this issue - simply they should have to earn this right, not demand it! Enough said!

In certain instances you might want to be in a position to assign your lease, prior to the end of the term. Typically this is negotiated up front, and requires simply that a credit worthy other entity be prepared to pick up your rights and obligations. Because of how lease financing companies are funded in Canada you might often find your own firm as the recipient of a notice of assignment by your lessor - the bottom line - nothing should really change as your rights still remain under and assignment unless you have agreed otherwise .

Well, that’s it. A lot of issues, some important to your firm, others less so. Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with rates, approvals, plus the number of other issues we have detailed than can make or break equipment leasing success in Canada.


Stan Prokop is founder 7 Park Avenue Financial ; see

http://www.7parkavenuefinancial.com

Originating financing for Canadian companies,specializing: working capital, cash flow, and asset based financing , the 7 year old firm has completed in excess of 80 Million $ of financing for companies . For info / free consultation on Canadian business financing / contact details see:

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

Paying Too Much For The Wrong Kind Of Factoring In Canada ? Why C I D Accounts Receivable Finance Works

Not Just Another Accounts Receivable Financing & Line Of Credit !


Information on accounts receivable finance in Canada . How to Address a/r factoring pricing to your firms advantage .


We run into far too many clients these days that are utilizing accounts receivable finance in Canada because they feel they have to... as opposed to wanting to .

Lets dispel some of the myths around factoring in Canada, additionally we'll talk about what we feel is the best type of facility (one you haven’t heard of we think!). Oh yes, and we'll address the cost of this financing also.

Most Canadian business owners and financial managers would not describe themselves as ' bankers ' if we asked them what they do for a living. However, welcome to the inner circle of Canadian banking, because when you think about it you're moonlighting as a banker . Why? ... Simply because you’re carrying a higher level of receivables than you probably want to. In effect you're the bank for your customers payables! And you don’t even get the bank pension!

It's around that concept that account receivable finance facilities are built in Canada. Your ability to convert A/R into cash flow for your own firm is critical. Naturally every firm that sells on credit has to make an investment in A/R - Factoring in Canada helps you eliminate or in effect finance that investment- Without external debt.

Although Canadian business often feels they are paying too much for factoring in Canada (rates tend to be in the 1-3% range on a 30 day basis the reality is that you are missing on the ability to take advantage of all funds that are in effect locked up in your A/R. And given that your terms are probably 30 days and most clients tend to pay between 60 and 90 days these days you're clearly tripling your inability to use cash flow to grown and run you business.

That’s where A/R finance comes in. Your ability to receive cash, the same day as you generate sales turns your firm into a commercial ATM machine. The continual flow of cash flow and working capital into your business as you finance your A/R as needed allows for more growth and more profits. Many firms miss out on the fact that a significant portion of the cost of factoring can in fact be offset, sometimes in entirety, by your ability to now purchase more effectively and take supplier discounts, thereby enhancing your relationship with key or valued suppliers.

Whats the best type of factoring in Canada .We think it's one you may not have heard of - it’s called C I D... standing for confidential invoice discounting. Under confidential invoice discounting guess who is control of the program - You!
You bill and collect your own receivables, and with the right type of facility set up you are in a position to not be locked in to any long term contract or breakage fees. That’s important, as a large part of the industry in Canada, (many of which are U.S. and U.K. players) would prefer to ' lock you in '. That’s not what the right C I D factoring in Canada facility is about.

The benefits of accounts receivable finance are significant... the weight of evidence in the constant interplay for working capital now puts you in the driver’s seat. You have total control of your cash flow, and because it’s a monetizing of your A/R you haven’t incurred one dollar of debt on your balance sheet. That’s a true business ' power punch '.

If cash flow and working capital is a constant worry for your firm speak to a trusted, credible an experienced Canadian business financing advisor about moving forward with the right a/r financing facility .. on your terms.



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 .Info re: Canadian business financing & contact details :

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

Your 2nd Best Bet in Canadian Technology & Cleantech Energy Finance

Technology Finance Solutions In Information Tech and Cleantech in Canada



Technology financing as well as ' Cleantech ' Energy Leasing and Finance is a growth sector in Canadian financing and exhibits a strong need for solid financial solutions. Let's examine what you need to know in terms of key fundamentals in acquiring tech and energy assets.

If you are a client that require constant asset acquisition in areas such as computers and peripherals, electronics, IT Services, Medical Equipment... etc you need to be aware that financing decisions you make in fact can be as important as the asset your acquire . It's obvious to many business owners and financial managers in Canada that paying cash for major projects in Cleantech and technology acquisition either doesn’t make sense or in fact is simply not possible.

The hard reality is that due to different tech and cleantech asset types no one finance firm or specific solution will suit all your needs. That's why in Canada, where the financing choices are simply less available than those in the U.S. it’s important to understand who the players are in the asset category you are choosing to finance.

Projects in IT (information technology) as well as the Cleantech area tend to require huge amounts of cash and have significant tax and tax credit implications. It's strongly predicted that energy and carbon tax credits will one day in fact become financeable themselves.

The carbon tax will are levied on all fossil fuels, including gasoline, diesel, etc... and in some progressive provinces, such as British Columbia, plans are already in place to have funds collected that will in fact be ' returned ' via tax credits.

The risk in both managing and staying on top of technology assets as well as Cleantech assets is a formidable one for Canadian business.

When you enter into a financing arrangement for either IT or Cleantech assets you clearly want to understand how they will be used by your firm, and for what duration. The proper financing of these assets in fact can become a competitive strategy.

Issue you should consider in technology finance includes your ability to upgrade during the term of the financing arrangement or lease. Proper ' cost of ownership models ' in both Cleantech and tech finance can be valuable from a viewpoint of return on investment. allowing you to also consider the implication of all those related items such as software, training and support, environmental costs, etc. Very basic lease vs. purchase analysis can often help your financing decision and aid in the proper solution. It’s a simple matter of adding up all your costs and then ensuring your cash flows and cost of capital makes sense relative to the investment you are making.

Technology financing makes sense because it addressses the issue of cost, gives your flexibility, and provides rates terms and structures that make sense to your financial situation and goals.

Whats is then your first and best bet in technology financing and Cleantech finance. Quite frankly it’s simply vendor or manufacturer financing. The ability of the manufacturer or vendor to provide financing to you cannot be overstated. But on the other hand, 2nd best is often a better solution in Canada – that is .. aligning yourself with an independent unbiased financing solution allows you to escape from the ' control' that a manufacturers financing asserts.

That is why we often recommend to clients that they consider expert business financing assistance that is unbiased relative to your tech asset pricing, allowing you to eliminate many of the limitations that are placed when you align yourself with any one specific vendor. Flexibility and added expertise can save you thousands, even hundreds of thousands of dollars depending on the size of your project.

One size fits all does not work in technology financing and cleantech energy finance. Seek a customized independent financing solution that provides a comprehensive finance solution for your tech and Cleantech asset 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 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

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

Good Decisions Around A Commercial Business Financing Loan In Canada – Canadian Lending Options

Don't go on wondering if you feel you that as a business owner or financial manager you don’t understand your options around Canadian lending around a commercial business financing loan. Let's cover off some key groundwork around possibilities and the players.

In many cases certain types of business financing in Canada should be viewed as a specialty or a niche. The financial borrowings you entertain might be subsets of a certain type of financing. Some specialty areas that you might consider are of course bank debt, typically viewed as the most senior and least expensive method of borrowing if your firm qualifies.

Other more esoteric areas, but still viable, popular, and in fact growing in popularity are areas such as purchase order financing, confidential invoice discounting , asset based lending, bridge financing and mezzanine and sub debt financing . We would venture to say that in some cases you may have not even heard of some of these financing possibilities, let along of course understand the benefits of and requirement around successfully completing such financing .

The major8ty of Canadian business owners think in terms of our Chartered Banks when it comes to revolving lines of credit and term loans for equipment and working capital. However the reality is that you should be also assessing the merits of an asset based lender, a very unique and often independent commercial business financing firm that relies almost totally on your asset base of receivables, inventory and equipment and real estate (or combinations thereof) to provide you with a commercial business financing loan structured as a line of credit. Their expertise and industry and asset knowledge quite often exceeds that of many commercial bankers in Canada, if only for the fact this is their sole focus.

Term loans in Canada for either equipment or cash flow tend to b e three to five years in term duration. On occasion a firm needs what is termed a ' bulge ' or a ' bridge' loan type of lending that satisfied a unique need at a certain point in time for your firm. Typically these loans are then taken out or refinancing under better rates, terms and structures once the initial need around the bridge loan is satisfied - for example a temporary working capital bulge .

Many firms entertain cash flow, or what is known as ' mezzanine ' type financing to satisfy a lending need that can’t be arranged via your senior lender, i.e. the bank for example. Commercial mortgages are also often viewed as a financing vehicle, often in the context of a re financing of real estate for working capital purposes.

Hundreds of equipment leasing and financing companies in Canada also can solve your lending conundrum - acquiring special assets that have value and revenue generation for your firm.

Private equity in Canada has tended to be somewhat under the radar but continues to grow as a commercial lending option. In return for giving up a portion of your ownership the use of private equity allows you to focus on a variety of options, including, but not limited to: growing our business, refinancing your capital base, going private if you’re a public firm, and in many cases allowing you to work out of a distress or challenged period. Naturally a majority or minority controlling interest comes with that equity scenario.

The process involved in any significant commercial business financing loan is rarely different - you want to be in a position to highlight management capability, have reasonable financial target and goals , and willing to go through the proper level of due diligence relative to the size and type of financing you are entertaining.

Consider seeking and speaking to credible, trusted and experienced Canadian business financing advisor with the credentials to assist you in determining the right commercial business financing loan in the context of Canadian lending. The skills and expertise in business financing that an advisor brings will help position your firm for business financing success.





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 .Info re: Canadian business financing & contact details :


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