Asset Based Lending Company

Asset based lending companies (ABL’s) play a vital part in financing the economy and are dedicated to the growth and well-being of their clients. They provide their clients with cash by lending on fixed assets, accounts receivable and inventory, and engage in factoring, purchase order financing, real estate and leasing.
Businesses need money to grow. A business cannot survive just because it has a better product, an exclusive market or the best method of distribution. The fuel required for growth is money. Asset Based lending can be used when:

  • Operating cash is tied up in receivables
  • Sales growth is restricted by availability of cash for materials
  • Trade discounts are available but cash is short
 

Call or fill in the form to learn more and get started with our Canadian ABL services!





Private Alternative Financing

Asset Based Lending Services

Asset-based lending companies in Canada often advance funds when traditional sources are not available. They are familiar with various types of businesses and are responsive to client needs. ABL facilities will fund businesses with annual sales less than $500,000 to the multi-millions. The loan credit depends on the type of business and the content and quality of the collateral. The increased cash availability provided by asset-based lender often makes the difference between profitable growth and failure for the undercapitalized business.
As mentioned previously, Express Business Funding offers a number of financing products so your can receive flexible and fast funds to keep up with your business growth, bills, or opportunities.

Receive Competitive Low Rates With EBF

The cost of asset based lending services is influenced by the credit risk and collateral associated with the transaction. When evaluating an asset-based loan, borrowers should assess the cost of financing in the context of the benefits to be received. Compared with other business funding alternatives, this is very cost effective and efficient.
Asset-based lending companies frequently look beyond financial statements to determine how much money they are prepared to advance at and after closing. Therefore, borrowers can take advantage of profit opportunities in the market by being able to plan ahead based upon their cash availability.
ABL’s are proactive rather than reactive and can often restructure debt during tough times to help avoid costly and disruptive refinancing. Over the long haul, the benefits will tend to offset the premiums associated with borrowing from the asset-based financial services industry.

 

Types of Asset-Based Lending Companies

Secured Lending:

Asset-based financing companies provide funds secured by the assets of the borrower. The collateral can include: accounts receivable, inventory, machinery, real estate, patents, trademarks or other assets where value can be determined.
The secured lender may establish a revolving loan where the borrower provides a pool of collateral that the lender translates into operating cash or working capital. The borrower uses the financing to buy more materials, expand marketing, improve productivity or other improvements and sells the resultant product. The sales create receivables that are pledged for cash advances and the payments received on the invoices pay down the loan. These increases and reductions in the loan balance are cyclical, hence the revolving nature of the loan.
Some receivables have less collateral value, for example, progress billing, past due receivables, and receivables subject to “set-off”. Raw materials and finished goods are normally acceptable collateral, but work-in-progress generally is not. Equipment and real estate may also be used as a source of financing.

Traditional & Other Types of Factoring:

The financing institution accepts assignment of the receivable but does not assume the credit risk. The client retains responsibility for managing the receivable portfolio. Generally, the factoring company will finance invoices up to ninety days from delivery of goods or services. Sizeable advances are made to the client when the invoice is generated (e.g. 80%) with the balance held as a reserve, and the factoring company waits to be paid by the customer at maturity. Once the factoring company is paid, the company releases the reserve to the client, less the fee earning for providing the financing.
Express Business Funding offers: Discount, Notification, Non-Notification, Spot, and Purchase Order Factoring services. To learn more please call us and speak to one of our business funding solutions experts.

Inventory Financing and Floor Plan Financing:

Certain industries require significant high-priced finished goods inventory. Examples: automobiles, refrigerators, washing machines, televisions and stereo systems. These are supplied on extended credit terms to retailers. Retailers usually do not purchase this expensive inventory outright; rather a finance company will provide credit to purchase the inventory, secured by the product “on the floor”.

Equipment Financing & Leasing:

Loans are provided for acquisition of new equipment and repaid over a period of time usually in line with 50% of the equipment’s useful life. With Leasing, the lessor purchases the equipment needed to fulfill certain obligations and the equipment remains the property of the lessor even after all the borrowed funds are repaid. For existing equipment, the existing assets are sold to and then leased back from a leasing company to release capital needed for working capital purposes.

 
 
Get In Touch For Fast Funds

As experts in all facets of collateralized lending, our Toronto asset based lending company specializes in financing businesses and business transactions involving a broad range of products and services, both domestically and internationally. We provide a number of solutions to help medium and small businesses obtain necessary funding quickly and at competitive low rates:

  • Factoring Services
  • Supply Chain Financing
  • Reverse Factoring
  • Equipment Financing
  • Inventory Financing
  • Floor Plan Financing
  • Equipment Financing & Leasing
  • Import / Export Trade Financing

GET THE FUNDING YOU NEED IN 24 HOURS!