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Do Something Uncomfortable . Try ABL Finance As Your Canadian Asset Based Lending And Financing Alternative!

Guest post by: Stan Prokop

Article Overview: Information on ABL finance in Canada. Reasons why asset based lending is the new paradigm in Canadian business financing .

Do Something Uncomfortable . Try ABL Finance As Your Canadian Asset Based Lending And Financing Alternative!

We can't speak for everyone but isn't it safe to say that either in our personal lives, or in business we're often reluctant to enter into a new situations simply because of the feeling of uncomfortableness. That's one of the reasons why Canadian business owners and financial managers might be reluctant to step outside their zone of comfort when it comes to looking at financing via ABL finance; an based lending']);"> asset based lending arrangement for their new business line of credit facility.



We would maintain it’s hardly a risk, as an asset based line of credit revolving facility is becoming more mainstream and popular everyday.



In some cases it simply not knowing what an initial course of action might be. That's actually quite simple - investigate what ABL, how it works, what are the benefits, what are the costs, and finally get a sense of how and why it differs from bank facilities.



It's clear to most business owners that the Canadian economy is clearly improving over the challenges of recent years. That's why it’s critical that firms such as yours have the ability to secure sufficient funding to support their growth and survival. It has been that access to funding that has been one of the greatest hurdles



It's clear to many Canadian firms that capital is available, it's simply a case

of being able to access funding that in many cases Canadian chartered banks are reluctant to make available. Canadian bank facilities via commercial business lines are credit are clearly the low cost solution and can offer numerous other services such as cash management, forex, etc.



But what if traditional bank lines of credit are not available to your firm? Enter asset based lending! This is where that feeling of ‘uncomfortable 'might be setting in. Why? Simply because it’s different, in that it focuses solely on your asset and your company's ability to turn those assets into cash flow.



Why is ABL finance a better fit in many cases. We'll offer up simply the fact that it supports growth and a number of unique needs your firm might have.



Recent studies suggest that based lending']);"> asset based lending grew over 25% in Canada over the last year or so. The vast majority of this activity is clearly the refinancing of existing bank lines and turning them into an ABL financing arrangement.



In Canada large cap ABL financing is very different from facilities sought by smaller firms. Larger facilities often start in the 5-10 Million dollar ranges and go into the tens and hundreds of millions of dollars. The same type of facility is also available to firms in the SME sector where these working capital faculties start in the 250k+ range. Talk about a broad spectrum.



And that broad spectrum translates into a wide variety of rates and deal structures.



There is a lack of information quite often to the SME borrower who has heard about ABL finance, wants to know more, and might think his or her facility isn’t relevant, if not for size alone. In our opinion the majority of Canadian business owners and financial managers are ' desperate' for quality information on Canadian business financing alternatives.



Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in both understanding and creating an ABL facility to turn your collateral into cash flow, quickly, and efficiently.

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Article Tags: abl finance, asset based lending, financing



Related Forum Posts
$1,000,000 - Hi Evan, Are you talking about US Dollars? If so, that would be approx £500,000 in the UK. The Canadian Dollars differs also from the Australian Dollar. In any case, one needs to solve problems to help people to get money. The more solutions are given to people's needs to solve their problems, the closer one gets. Finally, are we talking about 'Income' or can we talk about 'Asset'? Kindest Regards Beat "Unlock People's Potentials!"
Re: Finance is the primary requirement of business - [quote="rauljoseph":36x8dadn]Finance is very important in a business. It is all about managing the business' money and other assets. Finance includes the study and analysis of processes, financial institutions, markets and instruments that are involved in the transfer of money or anything that has a monetary value among consumers, businesses and government.[/quote:36x8dadn] Good point. I'll just add that if I was going into business for myself and could only have one skill it would be Sales & Marketing. You need to be able to create customers first and foremost. Finance is more of a support function for entrepreneurs.
Finance is the primary requirement of business - Finance is very important in a business. It is all about managing the business' money and other assets. Finance includes the study and analysis of processes, financial institutions, markets and instruments that are involved in the transfer of money or anything that has a monetary value among consumers, businesses and government.
re: restaurant start-up - I'm not sure about government grants for restaurants, but my recommendation would be to approach a lender that offers loans under the Canadian Small Business Financing Loan program where the government will guarantee 85% of the loan. You can borrow up to $250,000 to finance equipment and renovations under this program. Restaurants are very risky business, however some of the Chartered Banks will look at restaurants if there is enough of an initial equity investment and you have a solid business plan (experienced management team, good concept and strategic location).
Securities - Lending guru: I assume your securities offering has been registered - since you appear to making a general public solication


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