Asset Based Financing in Canada

We Provide More Funds than the Bank

Over 18 Years in Business

Recent Transactions

$250,000

Pressure Washing Company

$350,000

Clerical Staffing Agency

Asset Based Financing Receivable & Inventory

18 Years In business & Over 3,200 Clients Funded

  • $3 Million Minimum Facility
  • Rates at 1% Admin plus Prime Rate
  • High Advance Rates on Receivables
  • Fast Initial Setup with Less Paperwork
  • Inventory Accepted as Collateral
  • Equipment Finance Available
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Asset Based Financing

Asset Base Finance program for the Canadian Companies

Is your business growing faster than your operating capital?
1st Commercial Credit can provide asset based financing even when banks and traditional lending companies find these arrangements too risky.

We provide two types of asset based funding for Canadian based companies. The best and fastest approvals are for a receivable asset based financing arrangement. it is very easy to evaluate and we can offer a very high advance against the receivable face value.

The other type of financing is a combination of receivable assets, inventory assets and fixed equipment assets. We do not provide real-estate asset lending.

The difference between bank financing and asset based lenders

Understanding asset based lending starts with understanding its differences from conventional financing.

Asset Based Financing in Canada
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Banks advance credit based on the value of tangible assets. The bank’s concern is predominately with physical assets such as cash on hand, real-estate, equipment and machinery. They review the company's sales, its credit rating, its credit history, and then they combine these assessments with a complete review of the company's financial statements and its debt-to-equity ratio.

It's common for banks to establish criteria for capital advances based on a company's year-after-year performance. In fact, most banks stick to assessments that are based on three to five year performance intervals. While banks will review the value of a company's inventory and sales, they don't base their entire decision around these assets.

1st Commercial Credit understands the value of the receivables, and can offer much more than a bank, especially when clients get into a concentration of receivables within a single client.

The Pre-Approval Process for Asset Based Financing

Step 1. In order for a client to be approved for asset based financing, the business must have several conditions in order to apply.

Asset Based Finance Inquiry Form

Sales Revenue & Parameters

1st Commercial Credit has various funding programs for businesses averaging monthly sales revenue from $10,000 a month to $10,000,000 a month. The structure of an asset based financing facility will depend on the credit history of the owners, number of accounts, billing cycle, financial status of the applicant, type of industry, master sales agreements, and proof of delivery documentation.

Accounts Receivable Assets

Our funding program must have a core asset of accounts receivable. The business must maintain a recurring invoicing process with the same account debtors and bill under net 60 day terms.

Inventory Assets

We will consider inventory asset financing depending on the clients needs. The borrowing base must stay under 25% of the accounts receivable face value.

Fixed Equipment Asset Finance

1st Commercial Credit can provide the business with Asset Purchase of equipment and refinance the assets at a longer term. This is usually provided by an affiliate lender that specializes in the specific equipment to be financed.

So Why Wait to Set Up Your Account?

Contact Us Today and You Can Enjoy using our funds to grow your business in less than a week

We Attract Clients That:

  • Expand so rapidly that they outgrow their working capital
  • Come from small business start-up ventures
  • Lose bank credit lines due to covenant violations
  • Experience seasonal sales
  • Experience strained cash flow due to a slow turnover in receivables
  • Have a large customer concentration
  • Need export receivable financing, credit protection or purchase order financing
  • Require In-transit inventory finance