The ABL line of credit in Canada. It's the product of a Canadian business financing tool that is a replacement for what business owners and managers know as the revolving business line of credit. What that is typically offered by ' the bank ' in the case of ABL it's a product offered by commercial finance companies. Unknown to most, it's also available at the bank, but we digress.
Today we're in SPEED DATING mode, from a business perspective!It's that process of sitting down, learning some key information on someone ( in our case ' something ' ), moving on, learning more, and then.. making a decision. Strap yourself in and hang on!, as a lot of info is going to come at you pretty fast.
- The ABL facility is a revolving business line of credit that uses all your business assets to secure the line of credit ' loan ' - itâEUR(TM)s actually not a loan, but a monetization of your assets
- Assets financed in you line of credit are typically receivables and inventory and equipment, but can also include real state, your ' rolling stock ' etc
- Asset based business line of credit are getting more popular everyday they are the bank alternative
- Who uses ABL facilities? Glad you asked -! Start ups, some of the largest corporations in Canada, high growth companies, public firms, private companies, and companies in SPECIAL LOANS at their bank, companies in turnaround mode. Bottom line - we canâEUR(TM)t think of a firm that isnâEUR(TM)t eligible in some manner
- Key advantages of the ABL business credit line include ability to borrow much more - we often see 100% increases in borrowing power. It works if you have business assets and donâEUR(TM)t want to, or canâEUR(TM)t add long term equity capital or debt
- Reporting on your business credit facility is more stringent - so you need to be able to prepare ongoing reports on your receivables, payables, inventories, and monthly financial stats, etc. If you can't do that already we suggest you have some other problems
- Asset based lending typically monetizes receivables at 90%, inventory between 25-75%, and current values of your equipment and other assets - Expect an appraisal when it comes to other assets
That's our business ' speed dating' recap on the ABL business line of credit. It's up to you, the business owner or financial manager to now ' pick your partner ' when it comes to choosing the right type of business line of credit for your firm.
Seek out and speak to a trusted, credible and experienced Canadian business financing advisor, who can assist you with your business credit needs,
Today we're in SPEED DATING mode, from a business perspective!It's that process of sitting down, learning some key information on someone ( in our case ' something ' ), moving on, learning more, and then.. making a decision. Strap yourself in and hang on!, as a lot of info is going to come at you pretty fast.
- The ABL facility is a revolving business line of credit that uses all your business assets to secure the line of credit ' loan ' - itâEUR(TM)s actually not a loan, but a monetization of your assets
- Assets financed in you line of credit are typically receivables and inventory and equipment, but can also include real state, your ' rolling stock ' etc
- Asset based business line of credit are getting more popular everyday they are the bank alternative
- Who uses ABL facilities? Glad you asked -! Start ups, some of the largest corporations in Canada, high growth companies, public firms, private companies, and companies in SPECIAL LOANS at their bank, companies in turnaround mode. Bottom line - we canâEUR(TM)t think of a firm that isnâEUR(TM)t eligible in some manner
- Key advantages of the ABL business credit line include ability to borrow much more - we often see 100% increases in borrowing power. It works if you have business assets and donâEUR(TM)t want to, or canâEUR(TM)t add long term equity capital or debt
- Reporting on your business credit facility is more stringent - so you need to be able to prepare ongoing reports on your receivables, payables, inventories, and monthly financial stats, etc. If you can't do that already we suggest you have some other problems
- Asset based lending typically monetizes receivables at 90%, inventory between 25-75%, and current values of your equipment and other assets - Expect an appraisal when it comes to other assets
That's our business ' speed dating' recap on the ABL business line of credit. It's up to you, the business owner or financial manager to now ' pick your partner ' when it comes to choosing the right type of business line of credit for your firm.
Seek out and speak to a trusted, credible and experienced Canadian business financing advisor, who can assist you with your business credit needs,
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