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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, March 6, 2011

Can You Afford Not To Use Film Tax Credits When Financing a Film In Canada - An Investor Primer


Whether it’s a 1 Million dollar independent production, or a 10 Million (or more) project how can you possibly overlook financing a film via film tax credits in the Canadian marketplace? It's no secret if you are ' in the know ' that the utilization of tax credit financing for Canadian film, television and animation projects is often a ' make it , or break it ' component of ultimate success for the financing of your project

The financing of film, TV and digital media productions has radically changed going back to the 1970's. There is even a school of thought that the independent or ‘indie’ projects are in effect impossible to finance. We'll admit that the challenge is significant , but we don’t buy into the ' indie movies are dead' school of thought , especially when you can utilize Canadian film tax credits for a huge ( often 30- 45%) of your production budget . And your ability to arrange independent financing for the tax credit just adds cash flow and working capital to your venture.

The other components of the producers total finance plan of course involve other elements such as foreign pre sales, completion bonds, and the debt and equity component of your project.

So is there a fool proof method to arrange, certify and finance tax credits in Canada in order to appease and satisfy your project investors. In Canada there is only a very small handful of banks which participate in film financing - therefore access to the key players and being able to satisfy their financial requirements is critical.

In Canada there are a number of film tax credits that are spread over Canada's ten provinces. The reality is that sometimes the nature of your project makes it more sensible to focus on a specific province based on your filming or production needs.

The Canadian government, similar to other world geographies, takes a bullish stance on the film, TV an animation industry. Their focus is jobs, tax revenue, and nationalism. Your focus is on getting your project financed.

Let's assume you have a solid finance plan, you have arranged the various components of your equity and debt... how can you now take advantage of financing a film via the tax credit component. It's simple if you have a solid team and advisor in place. By selling and or assigning your tax credits to an independent finance firm or bank you can monetize the credits for cash flow and working capital.

Solid detail in your production budget, a qualified opinion by a film tax accountant, and your experience in completing a project allow you to now monetize your tax credit either on completion of your project, or, if you prefer, on an accrual basis as you start spending on the production.


Financing film tax credits is done by structuring what in effect is a bridge loan based on the collateral of the tax credit . Your ability to provide investors with a solid return on investment through the utilization of effective film tax credits and their financing will only enhance your reputation and chances of project success . Speak to a trusted, credible an experienced Canadian business financing advisor on the proper benefit and utilization of tax credit in successful film, TV an animation financing.

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http://www.7parkavenuefinancial.com/film_tax_credits_investors_financing_a_film.html

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