YOUR COMPANY IS LOOKING FOR ASSET BASED CREDIT LINE FINANCING!
ASSET BASED LENDING AND ASSET BASED LOAN SOLUTIONS IN CANADA
You've arrived at the right address! Welcome to 7 Park Avenue Financial
Financing & Cash flow are the biggest issues facing business today.
ARE YOU UNAWARE OR DISSATISFIED WITH YOUR CURRENT BUSINESS FINANCING OPTIONS?
CALL NOW - DIRECT LINE - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs
EMAIL - sprokop@7parkavenuefinancial.com
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Oakville, Ontario
L6J 7J8
A proper business line of credit allows your firm to charge ahead when 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 as a battle, and when your business at the impasse and stalled when it comes to growing sales and financing assets, an asset-based line of credit offers one solid solution.
ARE YOU GETTING ALL THE BANK FINANCING YOU NEED?
In Canada, we're well known for ' bank bashing at both the business and consumer level. ‘ (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/ lines of credit, there’s an alternative finance sector out there picking up all the slack, and then some.
UNLOCKING THE POWER OF BUSINESS ASSETS
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. The abl facility originated in the United States years ago, and most businesses in the U.S. actually use 'ABL' more than bank credit! It is a solid way of financing the balance sheet; for financing you need to enhance cash flows and draw funds when you need them.
Why is an ABL loan facility, in effect, a business ' non-bank line of credit ' unfashionable to some? We're not sure; perhaps it's the conservatism in us Canadians that only considers ' banks' as the only solution to business financing challenges.
WHAT IS AN ABL BUSINESS LINE OF CREDIT
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 accounts receivable ( i.e. your sales ), inventories, if applicable, and fixed assets that currently have not lines against them from other lenders such as equipment lessors. A ' ' borrowing base certificate' is established monthly, allowing your company to draw down on margined accounts receivables and inventory. Real estate equity in company-owned property can also be included as part of your credit line.
HOW TO QUALIFY FOR ASSET BASED LENDING
Your firm must maintain up-to-date financial statements and properly aged receivables, payables, inventory lists, etc., to qualify for ABL financing.
WHAT IS THE COST OF ABL
We can already hear our clients the 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, while financing costs are often (not always) higher, these 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.
CONCLUSION
Business line of credit abl facilities may be the solution you are looking for to address business capital needs. 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.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
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