Are you totally on top of the newest trend in Canadian business financing these days? Then of course you’re fully aware are knowledgeable on ABL Financing for a business credit revolver loan versus the alternative… a bank line of operating credit.
What’s that ? You’re not? No problem… read on!
No Canadian business owner of financial manager these days disputes with us the challenges of obtaining what everyone seems to call ‘ traditional bank financing. For all the right reasons (probably … hopefully?!) Canadian banks hunkered down and tightened the lending strings a bit after the 2008-2009 financial debacle.
Therefore it’s not hard to determine how various specialized funds and independent finance firms came to a high level of prominence by offering ABL financing. A = Asset B= Based L = Loan .. It’s as simple as that.
Do you recognize any parts of the following story … we think you will. You feel as if you had hit an impasse in expanding your firm. Personal funds have been depleted and your efforts to find that elusive ‘ traditional ‘ financing have failed. Additionally your firm might have some real challenges in perhaps returning to profit after you industry has been out of favor with those people in the glass towers that seem to know everything…
Is there really a viable solution to that business financing challenge, i.e. a real world alternative to a bank line and credit revolver loan? Enter asset based financing and asset based lines of credit!
Depending on the size of your facility and the overall financial condition of your firm the cost of ABL financing will either be lower, competitive, or higher than your current finance arrangements. ‘Thanks a lot ‘ we can hear you say, as that sure wasn’t very informing in nature! But we stand by that comment because of the complexity involved in assessing the size of your financing requirements, the overall credit worthiness of your company, and the mix of financing you need when it comes to ABL financing . The bottom line is simply that every situation is unique and needs to be addressed in that manner.
The essence of our message is hopefully clear – you do have a Canadian business financing alternative, and its a non bank revolving credit revolver , via an independent firm that provides you with very high liquidity rations on key assets such as receivables, inventory, and in many cases fixed assets and a/r.
Do we qualify? is question number 1 or 2 more often and not from clients . The answer in the ABL financing world is that everyone qualifies with only one criteria being required – you have business assets! because that’s what an ABL financing credit revolver is all about . And , as we said, it might be more expensive, and due diligence on your operations and assets might be a bit more rigorous ( in fact it will be for sure – ABL lending focuses on assets , not ratios !).
Whats happening in the Canadian ABL loan marketplace. Lots. Billions of dollars of financing is being accessed everyday by your competitors who are knowledgeable abut this new type of Canadian business financing. And it’s sure cheaper than bringing in additional equity, if in fact that could be arranged.
Interested? Intrigued? Want to know more? Speak to an experienced, trusted, and credible Canadian business financing advisor for the scoop on an ABL loan versus bank line. We guarantee you will be glad you did.