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Thanks for dropping in for some hopefully great business info and on occasion some hopefully not too sarcastic comments on the state of Business Financing in Canada and what we are doing about it !

In 2004 I founded 7 PARK AVENUE FINANCIAL. At that time I had spent all my working life, at that time - Over 30 years in Commercial credit and lending and Canadian business financing. I believe the commercial lending landscape has drastically changed in Canada. I believe a void exists for business owners and finance managers for companies, large and small who want service, creativity, and alternatives.

Every day we strive to consistently deliver business financing that you feel meets the needs of your business. If you believe as we do that financing solutions and alternatives exist for your firm we want to talk to you. Our purpose is simple: we want to deliver the best business finance solutions for your company.



Sunday, October 17, 2010

How Film Financiers Can Monetize and Cash Flow Your Film tax incentive

Everyone else seems to know about them and are taking advantage of them, so why aren’t you? We are of course referring to the film tax incentive for film financiers in Canada.

There isn’t a day when we don’t read about film tax credits in the U.S. being under consideration for downsizing, or in some cases total elimination. That seems to be the trend in the U.K. also. So whats the good news? Welcome to Canada! The Canadian government has not only stepped up to the bar to maintain the credits and decry their benefits, they in fact have enhanced the credits for additional significant increases, primarily in the production credit area as well as digital animation.


We strongly feel that without the film tax credit incentive many productions info fact would not get made or completed, certainly those that are independent in nature, and non studio affiliated come to mind . Hollywood North is of course the generic industry term for the film, televison and digital animation industry. This typically seems to refer to projects being filmed or produced in Vancouver, Toronto and Montreal. But to show you how powerful the tax credits area, producers, owners and director can actually enhance their budgets by filming and production projects outside of these major centres - and, guess what, at that point the tax credits actually increase.

Film financiers and the industry in general seem to strong recognize the film tax incentives. It’s not hard to see the popularity of these tax credits, given that budgets seem to be increasing, and access to capital was somewhat demolished in the 2008-2009 global recessions which hit every industry, not just entertainment of course.

Project owners always have the same challenge; we are referring primarily to independent productions, not major studios which have much more access to capital. The challenge is always the same, raise some equity , work hard to ' sell' or ' pitch' your projects to distribution and pre sale entities, and then wrestle down that final gap via bank and tax credit financing .

The monetizing or cash flowing of your film tax incentive credit can be a key part in the successful financing and completion of your project. In Canada the production tax credits in the past primarily focused on the labour component, but now all sorts of other eligible expenses can be claimed. This only means one thing, a larger tax credit, and more working capital if you monetize of cash flow your credit.

In Canada your film tax incentive credit can be financed either on final certification or completion. However, if you have a credible project with a solid finance plan and a track record you can actually obtain accrual financing to significantly cash flow your project during production. Most conservative finance people would suggest your use the cash on your tax credit to successfully complete your production, more aggressive owners of projects often use the funds to start the next great project t - that’s your call .

Successfully cash flowing and monetizing your tax credit enhances the overall potential return on investment in your project. Speak to a trusted , credible and experienced film tax credit financing advisor to help recoup and enhance the investment and ultimate 's 'saleability ' of your project .

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