We recently did an internet search for the term ‘ business financing ‘ in Canada. Last month in Canada 18,100 searches were performed for that term. WOW! We’re quite sure that asset based lending could satisfy a lot of those Canadian business owners and financial mangers looking for business credit facilities that comes ‘ smarter and faster ‘. How? Let’s take a look.
Asset based lending is business to business lending , providing cash flow and revolving credit facilities for firms of all size in Canada . In truth the facilities work for firms requiring a monthly business credit line in excess of 250k, and ranging upward to tens of millions of dollars. We’re quite sure that covers many of those 18,100 queries made on the internet.
Asset based lending uses your receivables and inventory by the way to provide you with a lending facility against those two assets. Because of the manner in which these types of credit lines are calculated you can be sure that 99.99% per of the time you are going to have access to more cash flow. And that’s what business financing is about, right?
ABL ( asset based lending) business financing is business credit that can be used to grow your business, acquire another business, or simply speaking, fix a lot of the financial challenges that you are experiencing, almost immediately .
A key benefit often overlooked in the approval process is the fact that your firm is now in a position to negotiate better terms and prices for your products and services that you need. Why / because you have ‘ business buying power ‘ Vis a Vis your new found access to more business credit.
So when we look at those 18,100 firms that searched for business financing last month in Canada why didn’t these companies simply call you know who… Canada’s chartered banks?
The quick answer to that is that they probably have tried to arrange additional or new financing with their chartered bank or credit union, but have exhausted all attempts at approval simply because they can’t meet more rigorous bank qualifications. And , unfortunately, in some cases they have even been asked to leave the bank or find themselves in the ‘ special loans’ portfolio of the bank – we hasten to always commiserate with them that we know that’s not a ‘ special ‘ feeling you want to have in business.
In many cases the banks or other private equity type firms will suggest or request that the business owners put up additional personal equity into the business to justify new financing. Asset based lending does not require you to consider that option , simply because you already have the one thing that ABL financing needs to work smart and fast .. Assets!
So how does the ABL lender do it differently then. The short answer is that they place a lot of emphasis on understanding your business, getting regular bi weekly or monthly reports from yourselves on the basics , such as a/r, a/p, inventories, etc. This business financing expertise allows asset based lending to work in pretty well every industry in Canada – its real world working capital finance
If you want your company to be on the growth trail again , without taking on extra debt ( ABL business credit financing is cash flowing your assets, not adding debt to your balance sheet ) speak to a trusted, credible and experienced Canadian business financing advisor – let ‘ smarter and faster’ work for your credit needs.. Today.