YOUR COMPANY IS LOOKING FOR AN ABL LENDER FOR ASSET BASED
BUSINESS FINANCING!
WE'RE THE EXPERTS ON ASSET BASED LENDING
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?
Asset-based lending Canada
CALL NOW - DIRECT LINE - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs
Email - Stan Prokop -> sprokop@7parkavenuefinancial.com
Business Financing in Canada. We've always felt that an ABL lender (ABL = ' Asset Based Lending’) is one way for the Canadian business owner and financial manager to get the house... i.e. your company, in order!
HOW DOES THE SME COMPETE WITH LARGE SCALE CORPORATE FINANCING?
Larger corporations, in Canada we often refer to them to as the FP 100, or FP 500 perhaps have access to capital in a number of ways. And if they are public companies relying on equity, all the better of course.
Unfortunately, if your firm is in the other hundreds of thousands of that group you're a victim of the changing tides of access to capital in Canada. Think back to 2008 when it could not have gotten worse. The hurdles to that access to business financing seem... high! That is where the asset-based loan comes in - those cash flow lenders are not the only ones to rule the roost!
In Canada, there is a whole spectrum of business financing available. It's a question of knowing where it’s available, and how you can access it. That’s where the ABL lender comes in - they fulfill one of those huge niches in Canadian finance... Asset Financing. ABL finance is in some ways the ' new normal ' in business credit in Canada, as asset loans are as important as cash flow loans.
DON'T GET CONFUSED IN ASSET FINANCING TERMINOLOGY
The challenge quite often is simply understanding the terminology, and the finance folks in the industry do a great job, probably (we hope!) unintentional of confusing us with various terms in Canadian business finance.
We have found there is a solid roadmap business owners/managers can use to successfully complete an abl loan transaction asset-based business financing. So let’s share some of the steps on that roadmap.
THE ROADMAP TO ABL FINANCING SUCCESS
Many clients we talk to need business financing... yesterday. And that many times is the problem in that they are perceived as somewhat desperate and in dire straits, creating potential negative perceptions around their ability to raise, and repay the financing.
Knowing how you will use asset-based lending is simply a case of ensuring that your ABL lender understands a clear use of funds when it comes to asset based finance. More often than not its cash flow and working capital financing... i.e. your daily operational needs.
In many cases, certain types of finance are simply not suitable for your firm. You can waste a lot of time chasing financing that will never happen, and we’ve met our share of clients doing just that.
ABL IS ALL ABOUT LEVERAGING YOUR ASSETS AND SALES!
The ABL lender has one goal, and when it works you will be in great shape. That goal is to leverage assets. That of course has to be balanced with an appropriate return to the lender, as well as your company’s' ability to generate a positive return on this new capital.
ASSET BASED FINANCING COVERS EVERY BUSINESS LIFE CYCLE - FROM STARTUP TO MATURE CORPORATION
The true beauty of asset based business financing in Canada is that it covers the gamut of business stages: start-up and pre-revenue, emerging growth, growth, and mature.
The asset-based line of credit works great in certain cases - it's optimal when it finances receivables, purchases inventory, etc. It doesn't work when it is used inappropriately for term debt, fixed asset purchases, or product development needs.
The ABL lender is typically non-regulated, they are private firms that compete with banks and finance assets they are comfortable with.
A/R AND INVENTORY ARE KEY ASSETS UNDER THE ABL MODEL
Receivables and inventories and equipment are great ABL assets. These deals have no amortizations, grow with your firm, and are ' evergreen in nature - that is the asset-based financing proposition to your firm. You can even use the ABL model to help finance the purchase of an existing business.
CONCLUSION
When it comes to looking at your financing options with asset-based lenders Canada you need expert advice on what works for your firm and withing your industry. Whether you are looking for an 'abl bank ' or a commercial non-bank commercial lender call us for the solutions you need.
Can ABL get your business financing house in order? It has for hundreds/thousands of firms, so consider speaking to a Canadian business financing advisor who can assist you with finance success.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop 7 Park Avenue Financial/Copyright/2020
