Achieve The Impossible With Abl ? How The Asset Based Line Of Credit Facility Creates Financing

Why do we maintain ABL financing achieves the impossible

? For us, it seems pretty simple. It's that just one type of Canadian business financing, the asset based line of credit facility, can successfully address, and answer ' YES ' to the following questions:

Is your firm viewed as high risk by other more traditional institutions such as Canadian chartered banks?

Do you wish to acquire a competitor or another firm?

Do you need interim financing while in the stages of a ' turnaround'?

Are you experiencing ' hyper growth ' without the necessary financing to handle that growth?

Are you considering a bankruptcy/ receivership or in one now?

Doesnt it seems incredible that one unique method of financing can address those 5 issues, or is it just us that's impressed? Hopefully not.

ABL finance has gradually grown in popularity in Canada; we're often surprised why it has not grown faster. The reality is that some of the largest companies in Canada, both public and private now utilize this type of financing. Even more interesting, and somewhat ironic is that Canadian banks have boutique divisions that are also offering this method of finance.

We have often felt though that in the case of the banks there arent to many differences in some of the credit criteria, which is great for pricing and size of the facility, but less so for approval!

So how do asset based financings in fact address the 5 business concerns we profiled earlier. It's actually pretty simple as a concept. In essence it's a line of credit facility that bundles all your assets into one revolving line of credit. We can't over emphasize the word ' assets ' - that's the strength of the financing. In the case of ABL its not about ratios, covenants, outside collateral, high emphasis on personal guarantees... its just about... you guessed it .. 'Assets'!

As the levels of your financing expand you are in a position to borrow against these rising assets due to sales expansion, etc. Naturally it goes without saying that the margining of these assets is what your new found liquidity is all about. For a starter A/R and inventory is margined at typically 90% and 30-70% respectively. That liquidity is further enhanced by allowing you to borrow against equipment and real estate within that same facility.

In Canada facilities such as this typically start at 250k and go to tens of millions of dollars. And they do address all of the 5 situations we have mentioned.

Speak to a trusted, credible and experienced Canadian business financing advisor on how an ABL asset based line of credit facility just might be what you need ... today!

by: sprokop

POST COMMENT

Information On College Credit Cards How To Repair Your Credit Score Loans For Bad Credit Instant Decision: No Need To Worry To Avail Money Being A Bad Creditor Bad Credit Loans Get Money Even With Adverse Credit Swtor Credits ,any Time Determined To Be Able To Low-cost Swtor Breaks Get Payday Loans Bad Credit To Mend Your Credit Ratings & Financial Condition How To Find Payday Cash Loans Or Emergency Loan Companies That Will Help Those With Bad Credit? Where To Find A Lender To Borrow A $15000 Loan With Bad Credit Three Critical Tips For Finding Fair Credit Credit Cards Loans For People On Benefits With Bad Credit: Meet Any Usual & Unusual Necessity Four Crucial Tips For Credit Card Application Short Term Loans No Credit Check: Ideal Loans That Yields Lots Of Benefits Fair Credit Rating Loans- Assistance For Those With Fair Credit Status