YOUR COMPANY IS LOOKING FOR BUSINESS FINANCE!
ASSET BASED LENDING & ASSET BASED LOAN SOLUTIONS
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
Suite 301
Oakville, Ontario
L6J 7J8
Business credit needs sometimes give owners/managers the feeling they need an ' engineer ' of sorts for financing, such as an asset-based bank line. In their mind, they want financing for now and the future that ' fits right ' and is chock full of the advantages they need to run and grow their business.
CAN ALL YOUR BUSINESS FINANCING NEEDS BE SOLVED BY TRADITIONAL BANKING? ARE ASSET BASED LOANS THE ALTERNATIVE?
Because some or all of the finance solutions you need aren't necessarily available from Canadian chartered banks, one alternate solution is the asset-based ' ABL ' line of credit. It's one solution that puts your firm, the borrower, in the driver's seat when it comes to unlimited capital relative to your growth needs. That's a radical statement of sorts, so let's dig in.
ALTERNATIVE FINANCING / ASSET BASED FINANCING COMPETES WITH TRADITIONAL BANKING
Many clients we meet with initially are very reluctant to step ' outside the box ' when it comes to what they consider to be ' traditional ‘working capital and cash flow needs. However, in case you haven’t noticed, times are changing! Asset financing solutions grew dramatically in the United States, and this method of financing in the U.S. actually surpasses bank credit in volume of loans!
IS TRADITIONAL FINANCING ACCESS LIMITED GROWTH
While traditional bank lines come with the lowest cost in Canadian business financing, they can be limiting when it comes to the limits the bank might place on leverage - or in other cases being unable to address the seasonality and bulges in your business.
REQUIREMENTS TO ACCESS AN ABL ASSET BASED LINES OF CREDIT
The asset-based non-bank ' ABL ' credit lines do come with some obligations on your firm’s part. One of them is the need to report more often, always monthly but sometimes even more on your business's assets. Typically that's simply aged schedules of receivables, inventory, and fixed assets. We would submit that if your company didn't produce these efficiently on an ongoing basis, there are probably other problems lurking on your financials.
EVERY COMMERCIAL BUSINESS NEDS A BUSINESS LINE OF CREDIT
The revolving credit facilities you need are often the most sought-after part of the Canadian business financing puzzle. The asset-based credit line has the potential to solve all your liquidity problems if structured and managed properly.
ENTER THE ABL COMMERCIAL FINANCE SOLUTION!
Companies with higher debt and balance sheet ratios that don't meet bank requirements but still have current assets ( Accounts Receivable & Inventory ) have just discovered that they now have access to all the liquidity they need, albeit often at a higher cost. Real estate equity can also be included in the same line of credit - it's all about assets on the balance sheet!
EXPLAINING THE ASSET BASED LINE OF CREDIT VERSUS TRADITIONAL BANKING
When we explain the ABL financing asset-based solution to clients, it’s a function of focusing on the two different ways to look at a revolving credit line. The banks focus on cash flow, historical, present, and future. The asset-based lender takes an ' alternate' approach instead of focusing on your business's hard assets, monetizing them into one revolving facility. These types of facilities are also widely used in buyouts, acquisitions, and general refinancing of a business. Interest rates are higher on ABL loans, but they provide access to capital not otherwise available in traditional financing.
CONCLUSION
Asset based lending works! If you wish to explore the somewhat ' radical ' power of the asset-based bank line and feel that you need more ' business credit ' and flexible financing, seek out and speak to 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can assist you with your financing needs.
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Stan Prokop
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