Operating Lines Via A ABL Business Credit Line Financing Facility

YOUR COMPANY IS LOOKING FOR BUSINESS CREDIT FACILITIES!

THE ASSED BASED LOAN REVOLVING FACILITY

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

abl facility asset based lending banks asset based lending rates

An ABL Business Credit Line. Is this type of financing facility the ' new normal ' when it comes to operating lines of credit in Canada. Well perhaps not for everyone, but it sure bears checking out when hundreds, probably thousands of other businesses are utilizing this type of borrowing already... and successfully.

ASSET BASED LENDING VERSUS BANK FINANCING

The ABL (A = Asset B=Based C= Lending) facility is almost always compared to Canadian chartered bank lines of credit. And quite frankly, that’s ok! In actuality, this type of comparison quickly brings out the major difference between these two types of working capital/operating credit solutions.

Why is that? Simply because the nature of chartered bank borrowing is rarely all ' asset based ', while that’s what the ABL is all about. Simple as that.

ABL DOES NOT HAVE THE SAME REQUIREMENTS AS A BANK CREDIT LINE

We suppose you can call it a philosophy of sorts, but the fact of the matter is our strong, great Canadian banks have industry regulations that force them to focus on an all-encompassing type of lending when it comes to business loans and credit facilities. Those other areas we're referring to include heavy emphasis on personal guarantees and credit history of business owners, cash flow coverage, external collateral, key operating ratio metrics, and covenants that some might view as restrictive. We're tired even just going through that list!

ABL LENDERS IN CANADA

The majority of ABL lenders in Canada are in fact non-banks. They are commercial finance companies focusing on 1 thing: Assets! They, therefore, have the ability to finance your business when a bank can.

Two key points need to be made here. One is that banks also offer ABL facilities - it’s just that they seem to be a bit poorly advertised in our humble opinion. Secondly, all of a sudden the thousands of companies that weren’t eligible for Canadian chartered bank financing all of a sudden are welcome applicants for an ABL financing facility! We suppose that we could add a third point that there is a cost differential in ABL facilities (typically higher, but not always, and sometimes lower!).

YOUR FIRM QUALIFIES IF IT HAS SALES AND ASSETS!

So if your company has the assets and sales growth, but not the equity or some of the other bank requirements we have touched on and identified then you are clearly a candidate for the ABL business credit line.

ABL CREDIT LINES ARE NOT TERM LOANS!

Although it's often referred to, or thought of as a ' term loan ' by the business owner or finance manager it's actually simply a monetization of your current and fixed assets " accounts receivable, inventory, equipment, real estate' if applicable. Interest rates are higher in ABL financing solutions but provide much more access to business capital.

We quickly point out that the ABL also has some other superpowers! You can use it to:

Acquire a company

Stage a turnaround

Come out of a restructuring, formal or otherwise.

The higher borrowing base and 'margining power' of such financing allows you to bridge the gap between additional equity and simply waiting for your money from your client base.

ABL SOLUTIONS

CONCLUSION

So our bottom line today? Simply that you may strongly wish to consider maximizing the borrowing power of your assets to facilitate your specific needs: growth, restructuring, inability to borrow at the bank, etc. While the lower limit of such a facility is often 250k there are quite frankly no upper limits to ABL facilities in Canada. Oh yes, and some of our largest and most successful corporations utilize the method of financing - it’s just as we said, somewhat poorly advertised.

If your firm is in ‘MELTDOWN MODE' on business borrowing seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your operating facility needs, bank, or asset based loans!