Business Credit Line ABL Asset Based Facilities

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ABL Asset Based Facilities Reinvent The Credit Line  :  Get In Charge Of Your Business Credit Line
The Real Benefits Of A Non Bank Business Line Of Credit ?

 

YOUR COMPANY IS LOOKING FOR  BUSINESS FINANCE!

ASSET BASED LENDING AND ASSET BASED FINANCING 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
Suite 301
Oakville, Ontario
L6J 7J8

 

Business credit line needs can often fully be satisfied through an ' ABL ' asset-based credit facilities. They are 'non-traditional' only because the sole ' traditional ' solutions are Canadian chartered bank facilities. Yet they deliver on everything you need and more often than not... more. Let's dig in.

WHY CONSIDER AN ASSET-BASED CREDIT LINE?

When the Canadian business owner / financial manager thinks of revolving credit facilities, they rarely think ' outside the box. ' Hence, they are quite surprised to find out from us that all business assets can be combined into one total borrowing facility that revolves based on day-to-day business needs, seasonality,  ' bulges ' in sales growth and cash flow requirements. Hence the name ' Asset-Based Line of Credit. '

TWO KEY ISSUES IN ABL CREDIT FACILITIES

The two issues that immediately need to be table for focusing on a business credit requirement are  ' facility size ' and the cost. We can clarify and explain the cost issue very quickly - ABL costs more 99% of the time, but the benefit is unlimited access to credit needs based on your sales.  It's common knowledge that business borrowing costs today at the bank level are the lowest in recent history.

 

But  ' cost' should never be the only factor when it comes to business borrowing - so when ABL offers all the capital you need to run /grow your company, we're suggesting you listen.

 

Oh, and by the way, have we forgotten to mention that thousands of companies actually cannot qualify for either any or all of the financing they need at certain critical times. That alone is a good reason to entertain Asset-based lending facilities.

WHO USES ABL?

We are not presenting the ABL solution as the 'be all and end all ' method to finance your credit line needs, but it clearly is a logical alternative to traditional borrowing.  The spectrum of ' ABL ' users is vast, from start-ups to the largest corporations in the world. Naturally, those larger corporations represent the small percentage of applicants that can actually achieve bank or better pricing. 

HOW TO QUALIFY FOR AN ASSET BASED LOAN / LINE OF CREDIT

 

To qualify for ABL, your firm must be able to produce regular financials and report on the current assets in your business in a regular manner - typically monthly, on occasion, even weekly. That typically is not as bad as you think - it’s just about providing regular reports on aged payables, receivables, and inventory lists. We suggest to clients that if you can’t provide those reports, you're in bigger trouble than you think... if not today... tomorrow.

HOW DOES THE ABL FACILITY WORK?

ABL business credit lines provide 90% financing on accounts receivable, 30-70% finance of inventories, and even combines the value of your unencumbered equipment.  Company-owned real estate can also be a part of the credit line! At the end of the day, that means anywhere from 50-100% more borrowing power on an ongoing basis. Remember also that this facility, unlike the typical bank line, grows as your sales grow, and is not fixed, typically associated with a bank credit line.  Asset-based lenders establish a borrowing base certificate for how much funding you can draw down based on sales and assets and their due diligence on your financial reporting.

It's not always about interest rates when financing the balance sheet, but ABL facilities have become very competitive based on the size of transactions and overall credit quality.

CONCLUSION - ASSET-BASED LENDING WORKS!

Asset-based loans are a solid solution for your lines of credit needs. If you're looking to feel ' in charge ' of your working capital and cash flow needs and want to explore the real benefits of ABL asset-based credit lines, seek out and speak to 7 Park Avenue Financial,  a trusted, credible and experienced Canadian business financing advisor who can assist you with your reinvention of credit solutions.

 

 

Click here for the business finance track record of 7 Park Avenue Financial 

 

 

7 Park Avenue Financial/Copyright/2021

' Canadian Business Financing With The Intelligent Use Of Experience '

 STAN PROKOP
7 Park Avenue Financial/Copyright/2024

 

 

 

 

 

Stan Prokop is the founder of 7 Park Avenue Financial and a recognized expert on Canadian Business Financing. Since 2004 Stan has helped hundreds of small, medium and large organizations achieve the financing they need to survive and grow. He has decades of credit and lending experience working for firms such as Hewlett Packard / Cable & Wireless / Ashland Oil