finance advisor

Your company is facing a variety of challenges – many of them tend to be business financing related. The challenges can be positive in nature, and some might pose serious threats to your business growth or even existence. How asset can based finance aid your firm in allowing you to generate the working capital and cash flow you need to prosper and grow, let alone survive?

Asset based financed helps your firm in both good time and challenging times. The reality is that most business owners and financial managers in Canada currently don’t think we are in ‘good times ‘and business financing continues to be a huge challenge.

Asset based finance comes in a variety of forms – it is commonly in the industry itself referred to as ‘ ABL ‘ financing, and typically your firm would negotiate what is simply or commonly known as an asset based line of credit. The facility provides you with a revolving line of credit very similar to a chartered bank facility – it might also include a significant inventory financing component, and usually address what we could best call special needs or special situations re: turnarounds, growth, distress, etc.

The best candidate for an asset based finance line of credit is a firm that is experiencing strong growth but can’t attract the traditional capital that is used to finance receivables, inventory, plant and equipment, and even in some cases real estate.

An asset based line of credit can best be described as a ‘creative’ financing solution – that is because it takes your balance sheet and finances it to the desired ‘max’ based upon your different asset components. In some cases even intellectual property or patents might be included in the overall financing, although that clearly is not the norm.

Pricing in Canada on asset based lines of credit is all over the map – We tell clients they can expect to pay anywhere near a point or two over prime up to an including 1.5-2% per month. What defines that huge difference in pricing is what our clients are always asking. The answer is that that there are different what we will call ‘ tiers ‘ in ABL lending in Canada, and the overall size and deal quality of your firm will ultimately drive you to an asset based finance partner that more closely matches your needs and your overall ‘ risk profile ‘.

The reality is that asset based finance has somewhat changed the overall face of business financing in Canada and more and more firms, both large and small are gravitating to this form of finance. Deal sizes in Canada vary greatly – we do not encourage clients who have an under 250k/mo need to explore asset based finance because at a certain point the reporting, costs, etc done make sense for neither your firm or the ABL lender.

Asset based lending margins your assets to the extend of their current market value. Inventory financing is a major component of your facility if you require that, and inventory financing in Canada, from traditional sources, is difficult to arrange.

Is there any downside in asset based lending and an ABL working capital facility? Our clients ask. With relative certainty we can say any downside is significantly offset by upside. The facility gives you almost unlimited working capital, and margins assets that might otherwise not be finance able. And don;t forget, this type of facility does not add debt to your balance sheet, you are simply monetizing your hard and in some cases soft assets.

Speak to a trusted, credible and experience advisor in asset based lending who can highlight financing options that make sense for your firm’s survival and growth.

Buying a car is usually the second biggest investment in a persons life, and financing the purchase of a car is commonplace now days, especially if the vehicle in question is of any substantial value. For most people, buying a new or used car of any worth outright for cash simply isn’t possible, and so car finance gives you the option to purchase, and ultimately own a vehicle that you may not otherwise be able to, much like how a mortgage is taken out to pay for a house.

Even if you do have the savings, or means to buy a car out right, it is still sometimes a more sensible option to finance the purchase, as it allows you to release your money bit by bit in a controlled manner, instead of having all of it tied up in a vehicle, that could potentially get stolen, written off or simply depreciate in value considerably.

The car finance industry is massive and if you are considering financing the purchase of a new car, there are a number of things to consider and be aware of, in order to help you get approved car finance. There are a number of different sources to apply for, and obtain car finance, with the obvious one being from the vehicle dealership itself, but you could also obtain finance from the major banks and online financial institutions and companies.

Financing the purchase of a vehicle through the dealership is usually the most convenient option, however there are a few things you should be mindful of before approaching one. Financing through a dealership can often be ‘high pressure’, this is usually because the salesperson will be working on a commission basis so will be pushing for certain add ons and packages that, on the outset, may look worthwhile, but ultimately may end up costing you considerably more. Things like insurances, extended warranties, and extra options for the actual vehicle itself to push the sale value up are all examples of these commission based ad ons, and if you are financing, it can be harder to see the extra amount these things cost as they are effectively ‘hidden’ and divided over the monthly payments, or term of the loan.

Obtaining car finance away from the dealership with a bank or online institution can give you more control without the pressure of the sales push, and, once approved, you then have your budget and know exactly how much you can spend, which again, gives you more control when negotiating a price with a salesperson. However, because the finance has nothing to do with the dealership, or wherever you’re actually purchasing the vehicle from, you may not get as much support and after sales care as you would if you financed the purchase through them.

When applying for vehicle finance, there are a number of different factors that determine whether you get approved, and if you do, what rate you will pay. Interest rates can vary vastly and probably the most influential factor on the interest rate offered to you will be your credit history. Put simply, the better your credit rating, the lower the rate will be, and the worse it is, the higher the amount you pay back to the lender will be, due to an increased rate.

Another major factor impacting on the interest rate of car finance is the term of the loan – i.e the actual time period it will be paid back over. Usually, the shorter the period, the lower the rate, and it increases correspondingly as the term period is extended. Also, if you are wanting to finance the purchase of a used car, you will probably have to pay a higher rate than if you are buying a brand new vehicle, so this is an important factor to consider before buying. Your address and geographic location can also have an influence on the interest rate offered, as can your profession, and work history etc, so when applying for car finance, be prepared to answer a number of questions based around these areas.

Before going to a dealership to purchase and finance a car, it is a good idea to do some research and be aware of current rates and offers from competing companies and banks so that you are not entering into it completely blind, and can bring then up during the application process if necessary, to aid you in any negotiations.

When financing the purchase of a vehicle of any substantial value, you will most likely have to pay a deposit up front, which will represent a minimum percentage of the overall value of the vehicle, and demonstrates your commitment to the lender and the dealership, as well as helping to cover any admin costs etc. It is always advisable to put down as much as you can afford on the deposit, especially if it is an expensive car, as this will help to lower the monthly payments, give you a little breathing space and control, lessen the likely hood of you going into negative equity if you want to get rid of the vehicle, and also increase the likelihood of you getting approved for the car finance in the first place.

This is probably the most important thing to consider when financing the purchase of a valuable vehicle. If, at some point down the line of the agreement, you become unable to continue paying the monthly payments, or if you simply don’t want the car any longer for whatever reason, you want to either effectively be able to hand it back to the dealership without owing anything outstanding, or to sell it yourself privately without having to cover any potentially sizable negative equity before doing so, and it is your initial deposit that can help prevent this from happening in most cases.

It is never a good idea to finance the purchase of a car with a very low, or even nil deposit, as it will likely result in your payments being much greater, and if you want to release or sell the car you could very well still owe the lender more than the current value of the vehicle itself, as many vehicles (especially brand new ones) can depreciate in value considerably and surprisingly quickly after the purchase, so put down as much as you can up front to cover yourself for any such eventualities.

Before committing, you should ensure you are completely aware of the total financed amount as this will properly illustrate to you the amount you are ultimately paying for the car and whether it is actually worth it or not. Generally speaking, you should consider car finance as long as you can obtain a competitive interest rate and sensible terms that will allow you to comfortably afford the monthly payment, and you should also be able to comfortably put a decent deposit down up front that represents a substantial percentage of the overall value, and to finally remember that even if you can comfortably afford the deposit and monthly payments, whether or not the overall financed amount is actually representative of the actual worth of the vehicle you want to own.

#1 Creativity

Arts, rather than arithmetic or science, enable youngsters express themselves more successfully. Your child may be obliged to perform a monologue six times, create a picture depicting a memory, or develop a new rhythm to improve a piece of music as part of an arts programme. Children who have practised creative thinking will find it simpler to do so in the future.

#2 Academic Achievement

The arts do more than only stimulate a child’s imagination. These abilities that children develop as a result of them transfer to academic success. Young people who regularly participate in the arts are four times more likely than youngsters who do not participate to be recognised for academic achievement, to participate in a math and science fair, or to get an award for writing an essay or poetry.

#3 Motor Skill

This is especially true for younger children who are interested in art or music. Simple tasks like holding a paintbrush and scribbling with a crayon aid in the development of fine motor skills in children. Children should be able to draw a circle and use safety scissors by the age of three. Children as young as four years old may be able to draw a square and use scissors to cut straight lines.

#4 Confidence

While mastering a subject certainly enhances a student’s confidence, participating in the arts is something unique. Performing on stage and singing encourages students to step outside of their comfort zone. Their self-esteem will build as they improve and see their own progress.

#5 Visual Education

Drawing, painting, and sculpting in art class aid in the development of visual-spatial ability in young children. Kerry Freedman, Art & Design Director Children demand more knowledge about the world than words and numbers can provide. Art education teaches students how to interpret, analyse, and use visual information, as well as make judgments based on it.

#6 Decision Making

The arts help people enhance their problem-solving and critical thinking skills. How can I express this emotion in my drawings? What should this character’s role be? Making choices and decisions will surely carry over into their schooling and other facets of life, and this is an important skill to have as they mature.

#7 Perseverance

My own experience has taught me that the arts may be challenging. There were countless times when I felt like quitting up while learning and perfecting the flute. I, however, did not. I found after a lot of practise that hard work and perseverance pay dividends. This strategy will surely be useful as they advance in their jobs, when they will almost certainly be asked to continually learn new abilities and work on difficult projects.

#8 Focus

Whether you’re painting, singing, or learning a part in a play, concentration is vital. And, of course, concentration is required for studying and learning in class, as well as later in life when working.

#9 Collaboration

Many disciplines, such as band, choir, and theatre, rely on children’s participation. They must share responsibility and compromise in order to achieve their shared goal. Even if they do not have a solo or main role, youngsters learn that their participation to the ensemble is essential to its success.

#10 Accountability

Children who participate in the arts, like those who cooperate, acquire responsibility for their contributions to the group. When they drop the ball or make a mistake, they realise how important it is to accept responsibility for their actions. Mistakes are an unavoidable part of life, and educating youngsters to accept, correct, and move on can help them as they grow older.