ABL Financing is a ' game changer '. Let's take a look at some of the reasons why and the background around the business asset based credit facility.If you're the financial manager or business owner of any sized business in Canada it would appear you're more often than not searching for working capital. The assets in your business can offer that flexibility when they are turned into a business line of credit facility that the financial folks term an ' ABL '.The good news is that more and more firms in Canada, everyday, discover that the flexibility provided by this financing arrangement. When Canadian firms can't find a suitable traditional bank lending arrangement for working capital needs ABL emerges as a solid solution of choice.All your firm needs with respect to qualifying for such a facility is any mix of accounts receivables, inventories, equipment or real estate. A typical ABL facility is a combo of 2 or more of these asset categories. The asset based credit line in fact gives the business increased borrowing flexibility versus a cash flow based solution from, for example, a bank .Why is that? It couldn't be simpler, in that assets such as receivable and inventory are margined at higher values than they are with the Canadian chartered bank offering. Again, its collateral, not ratios and covenants that count when it comes to an asset based credit line.Is there a quick way for the Canadian business owner to rationalize a move to ABL? While no financing methods is always perfect , all the time the appeal of ABL is that it does not really focus on covenants - really the only thing that drives borrowing is the overall liquidity of your assets, whether you are growing or not.Another key positive is that an asset based line of credit can pretty well increase automatically as your business grows - That's because your assets would tend to grow at the same time.We've said no single method of business working capital financing is the panacea of perfection. So business owners should realize that Asset based credit typically involves more month end reporting on those assets.And while most asset based credit lines cost more than bank financing they can, on occasion be actually cheaper.The ABL market in Canada consists of a fragmented bunch of firms, some niche based and Canadian owned, while others are divisions or subsidiaries of U.S. banks and mega corporations. The industry services companies of all size, from start ups to major corporations. It should come as no surprise that some of the largest and well known corporations in Canada and the U.S. use ABL financing so don't feel you are doing missionary work in business financing! ABL is here and it just might be the radical ' game changer ' when it comes to financing your firm.Speak to a trusted, credible and experienced Canadian business financing advisor on how asset based credit lines can fund your daily operations, acquisitions, and growth.