The Reviews Are in - Film Tax Credit Financing Works
Information on how film tax credit financing strategies enhance the overall financial success of film and tv productions in Canada
Whether firms have U.S. or Canadian origins Canadian tax credit financing is a very valuable source of capital for entertainment content that is produced in Canada.
The overall stable financial environment in Canada compared with other sovereign locations help to promote both productions and the resultant tax credit schemes as sponsored by federal and provincial governments.
The bottom line is that tax credits from an overall perspective are both improving and increasing in the Canadian environment.
The Canadian tax credit environment is somewhat different from U.S. and other European countries which focus on pre-production, future values of the production, and the ancillary revenues associated with DVD, cable, television, etc.
Therefore in Canada tax credit film financing is not necessarily related to the projects ability to repay any lender with future cash flows generated from success of the project.
In Canada, based on the current tax credit structure of federal and provincial governments the financing of tax credit sis not dependent on commercial success. Naturally the ability to predict ‘commercial success ‘is in fact impossible, as evidenced by thousands of productions in entertainment history.
So how do Canadian productions get assistance with working capital and cash for for productions that have uncertainty of success?
The answer is simply to finance film, multimedia, digital and gaming tax credits via an independent third party, which in Canada’s case is either a Chartered bank or and independent finance firm .
The whole area of why government is involved in such an area is for another discussion, but clearly appears to be because of the potential for employment.
If a production is able to obtain ‘Gap financing ‘then that is an alternative to tax credit financing. Simply explain Gap financing is a cash flow or mezzanine loan on territories and rights.
Film tax credit financing in Canada is a very valuable cash flow and working capital component of the industry. The financing is very ‘boutique’ in nature, with a limited number of players. We recommend you discuss or consult your film tax credit financing needs with an experienced advisor in this area.
7 Park Avenue Financial :
2910 South Sheridan Way
Office = 905 829 2653
Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations .
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.
Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.