YOUR COMPANY IS LOOKING FOR ABL FINANCING VIA AND ASSET
BASED LINE OF CREDIT!
ASSET BASED LENDING ABL !
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
Asset Based Lending harnesses a company's assets to secure necessary funding, empowering businesses with a flexible and timely financial resource.
Unlock the power of your assets—transform your business's financial strategy with Asset Based Lending today!
7 Park Avenue Financial originates business financing solutions for Canadian Businesses – We offer ASSET BASED LENDING solutions that solve the issue of cash flow and working capital – Save time and focus on profits and business opportunities
INTRODUCTION
Asset Based Lending (ABL) is a 'game-changer' for businesses seeking robust financial support, bypassing the constraints typical of traditional bank lending.
By leveraging company assets such as inventory, equipment, and receivables, ABL provides firms with the liquidity they need to grow, manage cash flows, and meet ongoing operational demands.
Asset-based lending remains a crucial financing option today, offering advantages to both lenders and borrowers. Lenders benefit from the security of collateral and historically low loss rates, while borrowers enjoy lower costs and more flexibility compared to other loan types.
Initially seen as a last resort for companies unable to secure loans based on cash flow or enterprise value, asset-based facilities are now widely accepted and commonly utilized in acquisition financing by private equity sponsors.
This financing method not only ensures quicker access to capital compared to conventional loans but also offers flexibility in terms of credit requirements and repayment conditions, making it an indispensable tool for businesses aiming to navigate through financial complexities with ease.
WHAT IS AN ASSET-BASED LENDING FACILITY
Asset-based lending, also called ‘ABL’, incorporates asset-based loans, offering a robust financing solution to companies that have sales and assets. These loans are secured by specific assets such as accounts receivable.
WHAT WORKING CAPITAL IS FINANCED UNDER AN ABL BUSINESS LINE OF CREDIT
All your firm needs concerning qualifying for such an asset-based financing facility is any mix of accounts receivables, inventories, equipment, or real estate.
Asset based financing is simply the utilization of your firm's assets as collateral for a business loan or line of credit. Asset-based lenders offer flexibility and financial solutions through ABL, emphasizing their role in providing lower interest rates and immediate capital needs solutions for companies, especially those without strong credit ratings.
If you’re the financial manager or business owner of any sized business in Canada, it would appear you’re more often than not searching for working capital. The assets in your business can offer that flexibility when they are turned into a business line of credit facility that the financial folks term an ‘ABL’ (asset based lending), that’s asset based lending 101!
ASSET FINANCE SOLUTIONS AS ALTERNATIVES TO BANK CREDIT
The good news is that more and more firms in Canada, every day, discover the flexibility provided by asset-based lending (ABL) as a financing arrangement. ABL offers a variety of financing solutions, including asset-based revolving lines of credit and term loans, which are particularly beneficial for companies seeking more flexible financial solutions compared to traditional bank credit.
Asset-based lending rates will vary with your firm's overall credit profile.
CONCLUSION - THE ASSET-BASED LOAN Financing The Balance Sheet!
Call 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor on how asset-based lending and non-bank business credit lines can fund your daily operations, acquisitions, and growth.
FAQ:FREQUENTLY ASKED QUESTIONS / PEOPLE ALSO ASK / MORE INFORMATION
What benefits does Asset Based Lending offer over traditional bank loans?
Asset Based Lending often provides quicker funding with less stringent credit requirements, offering a lifeline to businesses that may not qualify for traditional loans.
How does Asset Based Lending work?
Businesses leverage assets like inventory, equipment, and receivables as collateral to secure loans, providing capital based on a percentage of the asset's value.
What types of assets can be used as collateral in Asset Based Lending?
Common assets include real estate, inventory, equipment, and accounts receivable. Each has a different valuation method and loan-to-value ratio.
What are the risks associated with Asset Based Lending?
Key risks include potential over-leveraging, asset devaluation, and the possibility of default, which could lead to loss of the collateralized assets.
How can a business qualify for Asset Based Lending?
Qualification typically depends on the type of assets, their value, and the business's ability to manage loans. Financial records and a sound business plan are also crucial.
What is the typical interest rate for Asset Based Loans?
Interest rates vary based on market conditions, the borrower's creditworthiness, and the quality of collateral, but generally are higher than traditional bank loans.
Can startups qualify for Asset Based Lending?
While challenging, startups with valuable assets and strong potential cash flow can qualify for asset-based loans.
How are assets valued in an Asset Based Loan?
Assets are appraised based on current market value, expected depreciation, and potential to generate revenue, among other factors.
Is Asset Based Lending suitable for all industries?
It is particularly beneficial for industries with high amounts of tangible assets, such as manufacturing, wholesale, and retail.
What happens if I default on an Asset Based Loan?
Defaulting can lead to the lender taking possession of the collateralized assets to recover the loan amount.
