YOUR COMPANY IS LOOKING FOR AN ABL BUSINESS LINE OF CREDIT 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
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 make 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 business 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 spite 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 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 aren't working speak to a trusted, credible and experienced Canadian business financing advisor about the possible solution to those upcoming or existing challenges.
Click here for the business finance track record of 7 Park Avenue Financial 
Stan Prokop 7 Park Avenue Financial/Copyright/2020
