Why The ABL Loan Facility : Believable Business Line Of Credit Financing

Why An ABL Loan Facility Let’s you charge ahead, not retreat, when it comes to growing your business

OVERVIEW – Information on the ABL loan facility in Canada . How does this business line of credit work an why it is different ?






A proper business line of credit allows your firm to charge ahead when it comes to growing a successful and profitable company. That's why when sometimes all else fails an ABL LOAN FACILITY is the way to achieve the proper balance of asset monetization and working capital. Let's dig in.

Much has been written about business being a battle ,

and when your business at the impasse and stalled when it comes to growing sales and financing assets an asset base line of credit offers one solid solution.

In Canada at both the business and consumer level we're well known for ' bank bashing ‘. (Our solution is simple on that one - invest in our banks!) . But when a business can't access the low rate and flexible chartered bank revolving credit facilities there’s an alternative finance sector out there picking up all the slack, and then some.

Billions of dollars are loaned in Canada, via this sector of commercial finance companies, to businesses just like yours that want to unwrap and finance their asset and sales potential.

So why is an ABL loan facility, in effect a business ' non bank line of credit ' unfashionable to some. We're not quite sure, perhaps it's the conservatism in us Canadians that only considers ' banks' as the only solution to business financing challenges.

Asset based credit lines monetize assets and sales - simple as that. So under the umbrella of a business credit line they allow you to borrow against receivables ( i.e. your sales ) , inventories, if applicable, and fixed assets that currently have not lines against them from other lenders such as equipment lessors .

We can already here out clients first reaction to hearing about such facilities. Their only question - ' Sounds too good to be true, so what is the downside?” Our answer all the time? Simply that business is about balance so while financing costs are often (not always) higher these types of facilities provide you with unlimited business credit if you have the sales revenues and assets to back them up. And that comes without, by the way, those ratios, covenants, and outside personal collateral that is often, if not always demanded by Canadian chartered banks.


So the sad, but changing reality on ABL loan facilities - simply that thousands of Canadian business owners and financial managers have not even heard of ABL credit, much less understand how it works. Getting them over the top in understanding this valuable aspect of business financing is often the role of a trusted, credible and experienced Canadian business Financing Advisor with a track record of success .



At that point the financing becomes ' believable' and the business owner/manager will soon be leading the charge against the competition in their industry, knowing full well they have the financing in place to win those battles in 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 ABL 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

SME Finance Commercial Financing Options In Canada : Reshaping Business Loans And Finance Solutions

Looking For Extra Strength Canadian Business Financing in The SME COMMERCIAL FINANCE sector ?

OVERVIEW – Information on SME FINANCE solutions and commercial financing options in the small to medium enterprise sectors of Canadian business. What loans and asset monetization strategies make sense




Commercial financing options in the SME Finance area are constant challenges to business owners and financial managers. The ' SMALL TO MEDIUM ENTERPRISE area of the Canadian business is often touted as driving the economy - why then are loans and asset financing strategies often hard to come by - or are they ? Let's dig in.

Business owners and financial managers need to adapt to the changing face of business finance in Canada. Success in business comes from many aspects of management. and financing is certainly one of them.

You only need to talk to any one in this sector to realize they often feel they are highly UN - supported by Canadian banks. That's somewhat ironic of course given the stellar international reputation of our banking system. In fact top experts tell us that the ‘mortality rate ' in the SME sector is often higher and places all the challenges of business on a single owner or partnership.



So are those financing options in fact ' limited ‘. Not necessarily. One or any number of the following options can help propel a business to growth or profits. They include - but are not limited to:

A/R Financing / Confidential Receivable Financing

Government Small business loans - Guaranteed by Ottawa

Working Capital Term Loans

Equipment Financing

Sale Leaseback strategies

Franchise financing

Non bank asset based lending

Unsecured bank loans

Mezzanine financing

Royalty /Revenue strategies

Asset based non bank lines of business credit

Inventory Financing

PO / Contract Finance

Tax Credit Financing - (SR&ED / MEDIA tax credits)

SME owners don't always necessarily have the same goals as larger corporations - many are owner income driven, and issues such as productivity or asset growth aren't necessarily top of mind.

SME's typically have a ' life cycle ' associated with them - i.e. product /service development, early growth , hyper growth, mature, etc. Understanding where your company or business is in that cycle allows the business owner, when he or she has the right expertise, to match financing to challenges.

Choosing the right type of financing is often part of the ' risk ' decision. The amount of personal control via taking on debt, personal guarantees, or having to provide outside collateral are all key factors that need to be tabled and discussed. While a large corporation might consider growth with significant risk the an SME owner may simply not want to take on that additional worry

If you're looking to ' reshape ' your firms financing and need that extra ' bench strength'

seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in matching financing , risk , and success to your business goals.







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 SME COMMERCIAL FINANCING 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

Receivables Lending In Canada : Stealth Financing Via Factoring Companies And A/R Finance Solutions

Receivables Lending In Canada : Stealth Financing Via Factoring Companies And A/R Finance Solutions`


OVERVIEW – Information on receivables lending in Canada . Factoring companies in Canada offer a unique solutions to business financing challenges





Receivables lending in Canada hardly suggests commentary by ‘The Bard ' - aka Will Shakespeare.

But when we discovered that some classic commentary of his might well relate to Canadian business financing alternatives we couldn't resist. Could Shakespeare really have been talking about Receivable factoring companies in Canada? We're not sure, but let's dig in!


"Mum's the word" - Henry VI, Part II- Alternative financing solutions such as CONFIDENTIAL RECEIVABLE FINANCE are still relatively unknown to thousands of firms that require working capital and cash flow financing .
Business owners and financial managers in Canada recognize that the ability to finance current assets such as A/R and inventory is key to overall success. But getting it right is always a challenge .While a solid cash flow plan or forecast is all about ensuring you have contingencies in place Murphy’s law often sets in and creates ' bulges' in your cash flow needs . That’s when factoring companies can provide you with a solution that works.



"A wild goose chase" - Romeo and Juliet - Business owners/ managers are often a little too close to the action and miss some of the warning signs in their business. Some of those include constant need to juggle payments to lenders or suppliers, declining profit margins, mounting CRA obligations, etc.

We're quite sure that the majority of Canadian business thinks of our Canadian chartered banks as the solution to the help they require financing their business. If your firm doesn't have all the requirements needed to meet bank financing then alternative financing is the key to survival and growth of your company. Note also that an asset monetization strategy such as receivables lending does not bring debt onto your balance sheet. Your A/R becomes in effect self liquidating as it turns into constant cash.

The A/R financing solutions is simply the commercial finance solution to a revolving line of credit, allowing you to monetize sales to ensure maximum availability of cash flow as you need it. And of course you only pay for what you use, which is key in understanding the costs associated with this method of finance in Canada.

The way to look at the cost of A/R financing in Canada is simply a cost of doing business that is offset by your ability to grow sales and profits , while not being ' the bank' to your clients who we are quire sure have similar problems!

"Too much of a good thing" - As You like It - A proper receivable finance solutions allows you to better manage the inflows and outflows of your business. It's that ' timing ' issue that is the key to an A/R solution, as you are able to monetize sales directly into cash flow. A proper receivable financing solution will also help you if your business is revenue or project based, allowing you to finance milestones in your work as they are performed.

"All's well that ends well" - All's Well That Ends Well - The perfect ending for any business, as it relates to financing is the owner/managers ability to be proactive in cash flow needs planning . Your ability to take discounts with suppliers and vendors and to take on large orders and contracts allow you to have a fresh outlook on your business prospects.

If you want to understand the various factoring/receivable financing options available to your firm 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 solutions provided by factoring companies in Canada.







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 RECEIVABLE LENDING 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

Fax = 905 829 2653

Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing with the intelligent use of experience '




















Stan Prokop

Factoring Finance Companies : Cure Finance Inequality In Canada Via AR Receivables Financing

William Shakespeare weighs in on A/R Receivable Financing in Canada

OVERVIEW – Information on AR Receivables financing solutions in Canada . Reading between the lines in business financing offered by factoring finance companies for companies in search of cash flow and working capital








Factoring financing companies in Canada can help cure the ' inequality ' that Canadian business owners and financial managers face when it comes to arranging working capital and cash flow financing, specifically AR Receivables finance. Let's dig in.

Is it possible that even Will Shakespeare weighed in our subject?! We went back and found some famous sayings he made and it clearly seems to us that some of his most famous lines potentially referred to business financing and cash flow finance.


‘MUM’S THE WORD ' (From Henry V1) = the reality is that thousands of business owners and financial managers don't really know enough about alternative financial solutions such as receivable finance. The truth? Simply that it is a strong alternative to traditional bank financing when your business can't access bank financing, or enough of it. A huge part of the Canadian business sector now considers this method of cash flow financing as a quick and accessible popular choice.

'RANT' - (From Hamlet) it’s easy for many business people to ' rant' against the banks. Why is that when our banks have one of the strongest reputations in the world? Simply because many business either don't have the track record and financial strength that is mandated by the banks when borrowing for business credit. Banks in Canada are mandated by government and shareholder requirements to maintain a conservative lending policy.

And while rapid growth from the entrepreneur is desired, even dreamed about, banks typical stance is to prefer slow and steady, keeping those ratios and covenants intact. Growth drives the need for continual working capital as receivables constantly increase, along with inventories.

And if your firm doesnt have a pristine balance sheet, or has an operating loss, or perhaps the owners have some personal financial issues... well the bottom line is that those become new issues to struggle with when attempting bank financing.

“KNOCK KNOCK - WHO'S THERE' (From Macbeth) - The who's there refers to the choices you have when seeking out a financing partner for A/R RECEIVABLES finance. That includes regional firms, small boutique financiers that specialize in specific business segments and industries, as well as Canadian and U.S. owned firms of all size. Our specific recommendation here is to learn about and access CONFIDENTIAL RECEIVABLE FINANCING, allowing the business to bill and collect their own receivables without any intrusion.

If you want to maximize the availability of working capital from your asset base seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with you asset based financing needs.



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 RECEIVABLE FINANCING 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

AR Finance : We’re Opening Up On What The Dickens Receivables Financing Factoring Rates Are About

Everything You Wanted To Know ( But were afraid to ask ) About A/R finance

OVERVIEW – Information on the cost and mechanics of AR finance in Canada . Receivables financing factoring rates explained relative to cost, structure, ways to minimize cost and maximize working capital financing




AR Finance considerations often force the business owner or financial manager to consider the costs of Receivables Financing Factoring Rates as compared to traditional banking, or the worst alternative, no working capital financing at all. So, everything you wanted to know, but perhaps were afraid to ask? Let's dig in.

So ' what the dickens ' is Receivable financing all about for a starter and why do top experts tell us that it's one of the fastest growing parts of the cash flow financing industry. (We’re the first to love a great expression, and not everyone knows that it was Shakespeare

that coined such terms as ' WHAT THE DICKENS, DEAD AS A DOORNAIL, in such plays as Merry Wives of Windsor and Henry V1 respectively)










A/R finance, simply speaking, is simply a method in which Canadian business owners and financial managers, predominately in the SME commercial finance needs sector can translate receivables into cash flow. The other alternative is of course the traditional bank line of credit which many firms, depending on their stage and financial status, cannot access.

We meet many clients, by the way, that actually can access bank financing, but just not enough! More often that not that's because of hyper growth which almost always wrestle with. (It throws ratios out of whack).

AR financing is a subset of asset based lending in Canada. It can be combined with a full working capital non bank revolving facility, or it can be used as a ' stand alone ' method of financing your firm. As an example service companies such as personnel agencies or software technology companies often carry no inventory, and their entire cash flow model revolves around financing customer accounts.

So what about those receivables financing factoring rates in Canada? The bottom line is that they vary, and can be anywhere from 1.25% per month all to facilities that cost 3 times as much. In all cases they are higher than bank financing, but they deliver on all the cash flow and working capital you need for your business.

While some may consider this method of cash flow financing expensive the alternative is limited or no financing which can be hazardous to (business) health. When you are unable to finance daily operations or to meet any of your term debt obligations unlocking receivables via AR Finance is a true life saver for thousands of businesses in Canada.

Remember also that you are in effect ' trading off' the cost of financing receivables and those receivables financing factoring rates versus your ability to grow your business and generate profits and solid return on investment. Remember also that you could well be eligible to consider 7 Park Avenue Financial = CANADIAN CONFIDENTIAL RECEIVABLE FINANCING Expertise allowing your company to bill and collect its own receivables, no notice required to your clients, which is often the case with old school factoring.



So if you choose not to be ' the bank' for your customers 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 your AR finance needs. It’s your probable solution to everything you wanted to know but were afraid ….!



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 :


http://www.7parkavenuefinancial.com/receivables-finance-factoring-rates-ar-finance.html





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

ABL Lending And Current Asset Based Loan Rates Make Impossible Financing Possible

Impossible Financing Made Easy Via ABL Asset Finance Solutions

OVERVIEW – Information on ABL lending in Canada . Asset based loan rates are becoming more attractive to the Canadian business borrower when it comes to working capital and business credit facilities required to grow, operate, or acquire a business







ABL lending means different things to different business people. So asset based loan rates differ, but in our context we are talking about a working capital credit facility, in effect a ' business line of credit ' that is a strong alternative to traditional Canadian chartered bank facilities. And as thousands of business owners and managers have discovered - they can often make the impossible... possible! Let's dig in.

ABL (' asset based lending’) credit lines secure the assets of your business and turn them into a working capital and cash flow facility. The most common assets financed under ABL include inventories, receivables, and fixed assets - and may also often include real estate.

(When real estate come s into lay in a business credit line it's in effect the business version of a home owner line of credit - the infamous ' HELOC’ that millions of Canadians borrow under.) But we digress, because we're talking ' BUSINESS'!

While public companies seemingly have access to more credit the SME sector in Canada often struggles with raising capital or monetizing assets. Enter ABL lending, which is the strong alternative to bank financing. By the way, the banks offer ABL lending; they're just not that big on TV commercials for this specific business borrowing product. The reasons for that we won’t explore today.

Why do companies consider borrowing under asset based loan rates and facilities? While the predominant reason seems to be the bank credit alternative its also a strong way to increase borrowing power, or financing a merger and acquisition or management buy out via monetizing assets. In some cases it is used to pay down other debt when that makes sense.

We referenced more ' borrowing power '.

That's because 99% of all ABL lending provides stronger margining of receivables and inventory, typically 90% and anywhere form 30-80% respectively. And when the business owner of financial manager throws fixed assets into the borrowing mix increased cash flow ability happens.

While we reference ABL finance as predominantly used in the SME COMMERCIAL FINANCE sector it’s also used by some of the largest successful and well known public and private corporations in Canada. Typically large retail chains use the inventory finance component of ABL as their working capital facility, given they have no receivables as retailers are an ' all cash ' business.

While Asset based non bank financing rates are almost always (but not all the time) higher current rates are coming down and provide even more consideration to consider this type of financing. So while Canadian business financing needs tend to gravitate by instinct to ' the bank’ the business owner and financial manager should not forget that the bridging of assets into cash is also provide by ABL lending.

So if you want impossible financing made ' possible ' when it comes to business credit lines 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 a finance solution that makes sense.





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 ABL Lending 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

Corporate Finance Solutions Financing : Business Funding Solved

Feeling Left Behind On Corporate Finance Solutions ?

OVERVIEW – Information on financing and business funding for Canadian business owners and managers . The implications of corporate finance vary and require an appropriate level of expertise and knowledge



Corporate finance financing solutions require an amount of expertise and knowledge that is sometimes not fully available internally at the business. Let's dig in.

Top experts tell us that having the information and assistance required to get business funding in place allows the owner to:

Manage assets

Decide where and how to raise financing

The type, amount and rate and structure of the financing you require have a significant implication on your business in many ways. Properly finance businesses maximize value of the company. Proper business funding on existing assets allows those assets to deliver on a ' return on investment '.

A good example might be EQUIPMENT FINANCING, allowing Canadian business owners and financial managers to gain the benefit of fixed assets in production and operations, while managing cash outflows at the same time.

If , as a business owner or financing manager you are not monetizing existing assets you in raising cash then you are likely exploring taking on new debt , thereby altering your overall capital and debt to equity structure. That always has operational and borrowing implications.

And that external financing, whether it is traditional or alternative in nature brings risk once improper or too costly debt financing is utilized. Many firms that require cash flow and who have assets consider ASSET BASED LENDING as a way to monetize assets without taking on extra debt.

The key in corporate financing decisions in the SME sector ( or for all firms really ) is ensuring the right type of financing solutions are in place and ensuring that debt solutions can be properly repaid and retired.

What then are the solutions

to business funding challenges? They might include:

A/R Financing

Inventory Finance

Commercial Canadian Chartered Bank Facilities

Non bank asset based lines of credit

Equipment finance

Sale Leasebacks

Purchase Order or Royalty financing

Working Capital Term Loans

Unsecured Cash Flow Loans

Revenue stream financing

Mezzanine Finance



Corporate finance solutions that you undertake will always have an impact on your firm, revolving around key issues such as risk, cash flow, return on investment, lender perception, etc.

Business funding involves the right amount of risk , and one well known expert defined financing risk as delivering both on ' danger' and ' reward'.

If you want to deliver on ' reward’ 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 solving funding challenges .




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 Funding 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

Fax = 905 829 2653

Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing with the intelligent use of experience '































Stan Prokop