Tweet

Asset Based Lending - Canada's 'New' secret financing strategy

Guest post by: Stan Prokop

Article Overview: The articles reviews asset based lending and its gradual rise to mainstream financing status and an excellent alternative for working capital and cash flow financing.

Asset Based Lending - Canada's 'New' secret financing strategy

Asset based lending strategies continue to gain Canadian momentum in the asset based financing arena.

Once viewed as a very ' alterative ' financing strategy based lending']);"> asset based lending in its truest form is clearly become ' mainstream' in Canada. Many of the negative pre conceptions about cost, client intrusion, etc simply don't exist anymore.

Asset based lending in Canada differs based on transaction size and the methodology around which day to day transaction are handled. As well there are various levels of application and due diligence at the front end of setting up your facility.

When Canadian business owners and financial managers sit down with us and ask us to explain ' based lending']);"> asset based lending ' we cover a fair amount of ground, as there are various types of ' ABL 'facilities. (More and more people simply refer to ' ABL ' as the acronym for asset based lending.

It can't be over emphasized that if you and your finance team/manger, etc doesn't understand the current ABL environment you are strongly encouraged working with an expert who will craft the proper facility. Successfully putting in place an based lending']);"> asset based lending arrangement will potentially differentiate your from your competitors as the immediate availability of greater amounts of capital gives your firm the potential to secure larger contracts and orders and improve relations with key suppliers, etc .

Asset based lending is simply the monetizing of your asset to their maximum cash availability. Those assets are typically accounts receivable, inventory, and purchase orders on hand based on seasonality, large contracts, etc.

Although it usually comes at higher cost than traditional chartered bank financing in Canada your ability to supercharge cash flow is the main driver in your business considering an asset based financing solution.

Receivables, inventory, and contracts on hand pertain to any industry, so based lending']);"> asset based lending is truly available to any industry, notwithstanding the fact that each industry might have its own challenges or unique business model.

Asset based lending is sometimes confusing simply because the term is used in a various of financing jargon - in our context here it is the ' cash flowing ' of receivables, inventory, and , on occasion equipment and real estate . Emphasis is clearly on the current assets of the balance sheet, your aforementioned receivables and inventory.

Your based lending']);"> asset based lending facility is simply a ' replacement ' for a Canadian chartered bank line of credit. It simply provides you with more liquidity, at better terms than are generally offered by traditional banking arrangements. We say better terms but as noted, the costs associated with the facility are higher.

We spend a lot of time with customers showing us how some of the ' perceived 'higher costs are in fact not really that due to the ability of the company to convert assets into cash and repeat their business cycle over and over, generating additional profits based on faster inventory turns and receivable collections . One of the tools we use is the ' DUPONT MODEL ' which will clearly demonstrate to our customer how asset turnover affects profits. It's a great financial tool!

In summary, if your firm has been affected by the liquidity crunch in Canadian business and you need additional working capital to survive and of course prosper consider talking to an asset based financing expert? Unlock asset cash flow and ensure you have long term dependable and unlimited financing in place.

Canadian asset based lending, a true financial alternative.

Related Articles
  The Dirty Little Secret Your Banker Won’t Tell You About Asset Based Lending and Asset Finance
  Reinventing Your Business Funding with Asset Based Lending Companies
  Worth Considering – Why A Canadian ABL Lending Facility & Asset Based Loan Is Unique
  Asset Based Lending - What you wanted to know and were afraid to ask!
  Canadian ABL Lending - True Success In Banking and An Asset Financing Loan
  Looking for Business Financing methods? Tap into asset based lending in Canada Today – 1 2 3 You’re Saved!
  Asset Based Lending & Financing Canada
  Stop Me If You Have Heard This But Isn't Business Credit Still Challenging and what is Asset Based Finance?
  Asset based Lines of Credit – Canada’s newest business financing option!
  Is ABL lending And Banking the Fountain of Youth Of Business Financing ? Financing Via Asset Loan Lenders
  What If ABL Was Your Secret Weapon in Business Financing in Canada?
  Requirements for a Business Line Of Credit in Asset Finance and ABL Lending in Canada .
  Breakthrough Lending Discovery ! How To Triple Access To Business Financing Via An ABL Asset Based Facility
  Keep Your Company Moving With An Asset Based Lending Operating Line Of Credit - Your Competitors Do !
  Asset Based Lines of Credit – Canadian Financing Solutions
  Why an Asset Based Lender Is Your Working Capital Solution
  Why Asset Finance, aka Asset Based Lending is the Ultimate Working Capital Financing Solution to your Business Challenges
  Is Asset Based Lending a Viable Option For Canadian Firms?
  Asset Based Lending Facilities for Canadian Firms
  Smarter & Faster Canadian Business Financing - Why Asset Based Lending Credit Facilities Work!

Article Tags: abl financing, asset based lending, asset based lending canada



Related Forum Posts
Re: How Much Of Ourselves Should We Give Away...? - what a great topic david start here, it reminds me of a movie i watched resently called KUNFU PANDA. The movie is all about keeping secret. there were two secret kept: the secret of dragon scroll and secret of cooking, later the secret was revealed which was no secret kept. the reason am relating this movie with the topic is that, you can give out 90% for free and hold on to 10% secret which will make you have more customer and traffic. I know some marketers both the internet and offline that will give you 100% product for free but whenever they want to sell to you the little one you will be glad to respond because of their gesture. What I would like to say is that giving out most of the product is a great marketing strategy to win more buyers to your future products.
Securities - Lending guru: I assume your securities offering has been registered - since you appear to making a general public solication
Re: Is it worth buying a Dell computer with financing? - [quote="JBunion":3lokpupn]You will always spend more money financing any product over a long term payment plan. The interest payments and total cost sometimes make it even double more than you would pay if you outright purchased it at the beginning.[/quote:3lokpupn] True, but cash flow for many people can be tight and financing is the only option, especially if the computer is needed right away. For instance, I don't have the money to buy my laptop in full right now... but by early March I will. However, I need a new laptop as soon as possible. So what would you advise I do? Finance the computer today, and then pay it off in full in early March? Would that be a good strategy? In that case, wouldn't I only be paying 2-3 months of interest?
Re: SEEKING PRIVATE OR ANGEL INVESTOR - Definitely have a thorough and accurate business plan. In the US, you can get help at SCORE - their website is full of great information and you can check for local chapters. If you would like a book that has all kinds of great information about financing options - this one is very good --- HOW TO GET THE FINANCING FOR YOUR NEW SMALL BUSINESS: INNOVATIVE SOLUTIONS FROM THE EXPERTS WHO DO IT EVERY DAY—WITH CD-ROM This new book will provide you with a road map to securing the financing. The book goes into traditional financing methods and assists the reader in setting up proper financial statements and a proper business plan. It details the differences between debt and equity financing and how and why to use each. Valuation techniques are explained for determining what your business is truly worth. However, the book’s real strength is in explaining alternative and creative methods of financing, such as SBA financing, investor angels, IPOs, limited public offerings and venture capital. Essential resources for finding the detailed information you need are included throughout. Item # 9780910627559 $39.95 Shri
Acquiring Financing - Any suggestions from the members here about tips on how to get financing to start a business or additional financing for expansion etc? Shri


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

How to Sell to the Price Driven Customer

What I Really Want Is...

Why We MUST Reinvent The Wheel

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.