Wondering how your competitors seem to have all the working capital funding they need and you don’t – the key to this answer could be simply asset-based lenders and asset-based credit lines that offer Canadian companies like yours.
Let’s examine how this relatively new and unique method of financing business can completely change the success of business financing.
The acronym for this type of financing is A B L; simply saying its daily cash flow to provide in relation to current, and sometimes even now so current assets. What do we mean by that? Simply that this facility allows for a margin on receivables, inventory, and in most cases, you should choose fixed assets and real estate. You are probably telling yourself that you can arrange the financing on your own of these fixed assets and real estate – but we are talking about using these assets as collateral for your daily working capital line of credit. So you are not a borrower without bringing debt to your balance sheet, you are simply leveraging your “assets”. (i.e. “A” in ABL!) for daily cash flow and working capital.
And why do we claim that this kind of working capital financing can be the key to business success. Simply because it was probably difficult to get the full amount of business credit you need. In some cases you may have discovered that it is a challenge to get credit lines in any way.
So if your competitors benefit from this type of financing today, who exactly qualifies for it and your company is a candidate. The answer is simply that if your business has a combination of 250k in working capital current assets you are immediately eligible for asset-based credit lines. We will add that companies with smaller assets can continue to monetize these receivables by financing invoices or discounting, but this is not our main purpose today’s information exchange.
So now the offer is already available. But why think about it. Simply because your business may be in one of many special situations – including issues such as the need for increased current operating cash, the desire for a merger or acquisition financing, the inability to obtain stock financing elsewhere, the rapid development towards traditional Canadian chartered bank financing, etc! We are quite sure you have a picture now!
The benefits of this type of business financing must now be quite obvious. It’s about access to working capital and cash flow financing that you haven’t had access to before. Assets that could not be financed are now financially viable, and stock financing, previously limited or unavailable, is now looming on the growth horizon.
Who are these asset lenders and what is the cost of this financing? We’ll leave it one day at a time, but if you want to explore asset-based credit lines for your business (remember that your competitor probably already has), then talk to a trusted, reliable and experienced tempest financial advisor who will help you identify the benefits and the best solution for your current tense business financing needs.