WELCOME !

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.



Showing posts with label tax credit financing. Show all posts
Showing posts with label tax credit financing. Show all posts

Saturday, January 28, 2023

Best Sr&ed Loan Tax Credit Financing Sred Finance Solutions !





YOUR COMPANY IS LOOKING FOR  BUSINESS FINANCE SOLUTIONS!

Alarm Clock Ringing On Your SR&ED Claim?  It’s Time To Cash Flow It!

You've arrived at the right address! Welcome to 7 Park Avenue Financial

Financing & Cash flow are the  biggest issues facing businesses today

ARE YOU UNAWARE OR   DISSATISFIED WITH YOUR CURRENT  BUSINESS  FINANCING OPTIONS?

CALL NOW - DIRECT LINE - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs

 

7 Park Avenue FinancIal
South Sheridan Executive Centre
2910 South Sheridan Way
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769


Email = sprokop@7parkavenuefinancial.com

 

 

 

Maximize Your Return ON SR&ED Tax Credit Financing 

 

 

 ' SRED '  Financing in Canada is all about using tax credit financing for the right reasons. Maximizing Canada's  r&d program via a SR ED loan is all about reaping the program's final benefit -  ' Cash '  Let's dig in!

 

It's important to view financing your SR&ED credit in the sr ed claim process as an option that's your choice as a business owner/financial manager. It's simply one more way to assist in both the R&D portion of your business as well as your business's general financial health. Simply speaking, being eligible for the program makes you eligible for the financing.

 

 

 

WHAT IS SR&ED / ‘SRED ‘ FINANCING

  

 

SR&ED Financing is your firm's ability to take advantage of the  SR&ED (Scientific Research and Experimental Development) program to support research in Canada. This  Canadian federal tax incentive program provides refundable tax credits to Canadian companies, with the program being administered by  Canada Revenue Agency (  CRA) -

 

The program allows  Canadian businesses to innovate and focus on business growth with the help of financial support for businesses that focus on R&D .  The program requires that basic research done be in the areas of applied research and experimental development in any of Canada's industries - Common industries utilizing e program include technology, natural sciences, and engineering.

 

 

 

UNCOVER THE UNTAPPED POTENTIAL OF  SR&ED TAX CREDIT FINANCING FOR INNOVATION 

 

Sr&ed  financing for small businesses includes larger corporations as well, and even non-profit organizations can participate and utilize these tax credits and cash refunds for their sr ed project that allows them to fund their businesses and pursue additional r&d activity.   SR&ED financing solutions are a valuable alternative to companies having to consider raising more business capital because it is non-dilutive and allows owners to maintain current ownership. Many early-stage and pre-revenue companies use Sred financing to help increase current ownership valuation.

 

 

Sred is termed non-dilutive funding as the financing of your credits are short-term financing that does not dilute the ownership of your business. Financing is in the form of a bridge loan and does not require owners to give up additional ownership of the company at a critical stage when the full business potential has not been realized and the business owner wants to retain ownership of the company.

 

 

 

TAKING ADVANTAGE OF THE SR&ED TAX CREDIT HELPS REDUCE THE CASH BURN RATE  AND OPTIMIZE CASH FLOW

 


Your company cash burn rate is the amount of cash your firm uses as well as the speed in which that cash is consumed - A large number of firms utilizing the SR&ED tax credit program spend significant dollars over a long period of time before positive cash flow and strong revenue are achieved. That negative cash flow is a concern for all business owners and is even more of a challenge when cash is limited and they can't access traditional capital. The ability of a company to achieve a trend to more positive cash flow is a key benefit of companies that utilize SR&ED loan financing! Your business model continues sustainable!

 

 

HOW DO SR&ED TAX CREDITS WORK  - HOW SRED CREDITS CAN HELP FINANCE YOUR BUSINESS



The SR&ED program is formally called the Scientific Research and Experimental Development program and it provides tax incentives to Canadian firms doing r&d. Businesses claim credits for a portion of the qualified expenditures related to the r&d work they faced in technical challenges.



The tax credits are for items such as salaries/ wages and items such as materials of payments made to subcontractors under their research work as long as those contractors are at arm's length of the business. Provinces and the federal government combine these refundable tax credits which can vary based on the provincial portion of the claim.



Companies can claim Sred credits by filing at ear end under form T6661 from CRA -  That form is filed with the firm's annual financial statements. The company must demonstrate the r&d done is technological in nature and is focused on the advancement of knowledge and capabilities around products and processes.  Claims are accompanied by detailed reports about expenses and work done.



 

 
WHAT ARE SR&ED CONSULTANTS  &  WHAT ARE SRED CONSULTANTS? 

 

SR&ED Consultants help businesses to successfully navigate the government Sr&ed program to allow a business to successfully claim investment tax credits for r&d.  Do you need to use a sr&ed consultant?  These consultants have the technical knowledge and help identify projects that are eligible for the sred program as well as actually prepare and file sr&ed claims on behalf of the company.

 

In many cases, they assist clients with any potential audit of the claim as well as provide ideas and advise on how to maximize the incentive provided under the program for work in scientific and technological uncertainty and in demonstrating how the company furthered technical knowledge. They will help demonstrate your hypothesis using consistent scientific methods including if your effort did involve formulating testing and modifying that hypothesis and if the adopted procedure was consistent.

 

Was a hypothesis formulated specifically to reduce or eliminate uncertainty? Was the procedure used consistent with the scientific method, including formulating, testing, and modifying the hypothesis?



 

Refundable SR&ED credits are of course for privately owned companies in Canada. They, along with their counterpart, film credits are administered by CRA - Canada Revenue Agency.

 

Financing your SRED claim is all about cash flowing your refund - many businesses that utilize the program are at various stages of what we can call their ' life cycle '. In fact, many firms that choose to monetize their claim are in a start-up or very early stages of development.  It's at these times that cash flow and working capital are most important.

 

What then are the typical uses of cash when financing your R&D claim for Canadian controlled private corporations? Typically they include:

 

Funding additional research - many companies have an ongoing R&D program annually.

 

Utilizing the funding to move their R&D into new markets - aka Revenues!

 

General working capital needs - payroll, supplier commitments

 

Financing growth via new orders/contracts, etc

 

If you have those needs that is when you should use sred financing!

 

Some clients we meet often speak of the additional time commitment required to prepare the claim. Naturally, a lot of that time commitment can be eliminated by both having documentation in place, and even more importantly ' tying your horse ' to the right SR&ED consultant - it's these folks that prepare the claims for this industry.  A good consultant will maximize your claim.

 

Utilizing the right consultant adds legitimacy to your claim - and categorically speeds up the process both in writing your claim and ensuring it moves through the govt processes at  'warp speed.' Businesses will appreciate that not all govt programs move at warp speed!!

 

By the way, if you're looking for proof of the benefits of the program you need only understand that thousands of firms just like yours (including your competitors) reap almost 3 Billion dollars a year in refunds for their work in overcoming technical challenges in their industry.

 

A  SR ED loan is all about needing, and getting your money now. It's your chance to beat the ' waiting game ' as refunds can take anywhere from  3-12 months depending on the complexity, size and filing time of your refund claim. In fact, the entire finance process can take only a couple of weeks to receive funding when you're working with the right firm

 

 

EXAMPLE OF A SRED LOAN FINANCING  

 

SRED Finance typically monetizes 75% of your total claim. For example, a 400k claim will net you 300 k in loan proceeds. That's how much you can borrow against SR&ED claims when you qualify for sr&ed financing.

 

Really the simple way to look at it is to view the SR ED claim tax refund as an account receivable of your business - and you're simply borrowing against that asset. By the way, the financing costs of an SR&ED loan are built into one final balloon payment at the end of the loan - this is a bridge loan with no monthly payments.Your loan is paid back when your company received the refund.

 

KEY POINT -   Accrued sr ed claims can be financed before you file your year-end claim - Talk about accelerating cash flow financing!  Many firms we work with choose to take advantage of ongoing regular financing as they spend on r&d in advance of filing - an example might be every quarter.

 

 

How long does it take to process a sr&ed financing claim - Spoiler alert -  a couple of weeks!

 

KEY TAKEAWAY - CLAIMING AND FINANCING YOUR SR&ED TAX CREDIT

 

Businesses in Canada can file and claim for the  Investment Tax Credit (ITC)  for r&d they are performing under Canada's Scientific Research and Experimental Development (SR&ED) program.

 

Companies  claiming the Sred credit must identify eligible activities and expenditures and be able to provide a detailed record of work and expenses via the approval process

 

Claims are filed on Revenue Canada's T6661 form which claims the refundable credit - Claims must include documentation that supports the claim such as receipts  for material costs  and records of payroll to employees or outside third-party contractors

 

Companies claiming SR&ED should understand claims may be audited and verified to determine claim eligibility around work and records


 

 

 
CONCLUSION  - GET THE MONEY YOU DESERVE BY TAKING ADVANTAGE OF SR&ED

 

SR&ED Tax Credit Financing for small businesses is a great tool for financing research and development. Let 7 Park Avenue Financial help you in navigating the sr&ed tax credit finance process. Sred funding is a great tool to help fund startups. Government tax credit financing solutions for businesses allow you to monetize your refundable tax credit and maintain good cash management. No minimum filing history is required - first-time applicants are welcome!

 

If you're looking to ' think differently ' on your SR&ED refund and want to consider the benefits of financing that claim today speak to 7 Park Avenue Financial,  a trusted, credible and experienced Canadian business financing advisor who can assist you with your cash flow needs. We'll show you how Sred finance solutions are achieved in a fast, flexible, and low cost manner!

 

FAQ: FREQUENTLY ASKED QUESTIONS /PEOPLE ALSO ASK?MORE INFORMATION

 

How much Can You Get From Sred?


The actual amount a company can claim under the SR&ED program will vary depending on each

business's project and the refundable tax credit is a combination of federal and provincial tax
incentives around the eligible expenses under the program. Depending on the province where the r&d is done different credits are applied - any investment tax credit under the program can be claimed by a private Canadian-controlled corporation, known as a  CCPC.


Is Sred a government grant?


The Scientific Research and Experimental Development (SR&ED) program is not grant per se, it is a tax incentive via an investment tax credit - The program allows Canadian businesses to invest in R&D in every aspect of the Canadian economy - small businesses and even large corporations can access the program to get financial assistance to conduct research and development in Canada. The key benefit of the program is it allows businesses to claim a refund for a portion of r&d that has been spent under eligible guidelines.

 


IS  SRED AN INVESTMENT TAX CREDIT


The SR&ED) program is an investment tax credit and allows companies in every part of the Canadian economy to conduct r&d and claim tax credits for a large portion of expenses related to the research and development they conduct.

 

This incentive allows a company to reduce taxes and recoup a large portion of items such as wages and salaries and materials and other expenses related to the research. The percentage claim varies but can typically be in the 35% range. Software development is a large part of Sr ed claims.

 

Qualifying expenditures also include payments to third-party contractors and overhead costs related to the research in scientific or technological advancement. Companies are required to maintain complete details around the r&d, utilizing manuals as an example. Typically sr&ed consultants that the company engages to prepare a claim will ensure expenses incurred that are not eligible will not be submitted with the claim.

 

What is the digital media tax credit?


Canadian game developers are eligible for the digital media tax credit in Canada. The program provides tax incentives to businesses developing and producing digital media - examples include video games, mobile applications and animation. The government's goal is to encourage the development of innovation in entertainment while allowing businesses to offset costs in the development of these products - Similar to SR&ED the Canada Revenue Agency administers these tax credits.

 

What is equity financing?

 

Equity financing allows a company to raise business capital via the issuance of shares of ownership in the business. Shareholders receiving ownership participate in the success of the company which is proportional to their share of ownership.

 

Financing equity can be achieved through a variety of sources including initial public offerings, known as IPO's. New equity financing dilutes the ownership of existing shareholders of the business and allows new shareholders to have a say in the business decisions and direction of the company. SR ED funding is an example of non-dilutive financing and monetizing federal credit.




What are Government Funded Programs

 

Government-funded programs in Canada include the Canada Small  Business Financing Program which helps businesses access term loans and working capital and asset financing.  This program, along with the SR&ED program are the two most popular government-funded programs for business.



What technology grants are available?    

 

Numerous technology grants are available to Canadian businesses, including the Scientific Research and Experimental Development (SR&ED) Tax Credit -



The IRAP program, formally known as the Industrial Research Assistance Program is another popular program used by businesses to develop and commercialize the technology in areas such as clean tech. The IRAP program is a good example of non-dilutive financing as grants are non-repayable in a firm's efforts to develop and commercialize the technology.

 

The NSERC (Natural Sciences and Engineering Research Council)  program funds research in science and engineering

 

 

What is alternative lending?

 

Alternative lending is a form of financing that is an alternative to traditional banking. Different type of financing is available to Canadian businesses, including factoring, short-term working capital loans, asset-based lending solutions, and financing refundable tax credits.

Alternative financing solutions are a viable option for many businesses including smaller firms and startup businesses. Borrowers must consider the terms and requirements for different alternative finance solutions.

 

How much money is in the ERC program

 

The ERC program is the acronym for ' EXCELLENT RESEARCH CANADA ' - The program provides early funding to early career researchers from provincial governments in Canada. Applicants must submit research proposals to secure funding and in order to determine if eligibility criteria are met under the program.
 


 



 

Click here for the business finance track record of 7 Park Avenue Financial

Wednesday, September 26, 2018

The Only SR&ED Funding Guide You Need For Your SRED Loan on Your R&D Tax Credit














Although Canada's Sr&Ed program seems to be going thru some changes in terms of application and adjudication of your claim the good news is that the ability to finance your SRED (SR&ED) claim is as straightforward as ever. Let's explore some key basics around what you need to know to finance your claim and get a head start advantage on your ability to reclaim SRED funds.


Put very simply, if you have filed a SRED claim there are a number of reasons to consider financing that claim for immediate cash. It's a simple case of staying ahead of the game and monetizing your R&D tax credit now to accelerate working capital.
There is no industry that is unable to finance a SRED claim - the program of course covers a wide variety of industries in Canada - many claims we see from clients are in the software and technology area, but virtually every industry has the ability to capture a SRED government grant that is of course, non - repayable.

We should state however that SRED claims that are prepared by proper technical advisors tend to be easier and quicker to finance - that is simply because with that experience and credibility comes the assurance to your lender that your claim has a high probability of being approved in entirety or for the most part.

That brings us to a critical point around the financing of the SRED claim, which is often our client's most typical starting question - 'Our Company has a SRED claim - how much can we get for it today?" SRED loans typically start out at 70% ltv. Ltv is an acronym of course in finance for loan to value, so we are simply stating that you can immediately borrow and receive in the range of 70% for your SRED claim. Naturally that 30% gap still remains with your firm to its credit, it's simply that you don't receive SRED loans for that remaining 30% which acts as a solid buffer to cover the probability that your claim might be adjusted by Canada Revenue Agency - it also covers off the financing costs.


A popular misconception around SRED financing is that it is a loan - that is not the case in the technical manner that we as business owners view loans. A term loan, or short term loan for that matter adds debt to your balance sheet, and you make payments on a loan of course. SR&ED financing of your R&D tax credit is simply the monetizing of your SRED claim, with the claim as collateral - so your firm is incurring no additional debt. Also, the beauty of a properly constructed SRED financing is that no payments are made for the duration of the financing - The financing costs are netted out against your final cheque that you receive from Ottawa and your province. (SRED funds usually have two components, the federal and the provincial portion.)

Sr&Ed financing is efficient and can happen very quickly - as a business owner you should view the entire process in the same manner as you would any other application for financing - example - leasing some equipment, etc.

The key aspects of a SRED application are a copy of your SRED claim, a copy of your tax filing that you of course made at the same time as you filed you R&D tax credit, and typical information on your company, i.e. your financial statements. If for some reason you have made the decision to finance that claim after you have had your technical audit you are eligible for even a greater advance that our aforementioned 70%- however typically clients come to us when they have just filed a claim, or in some cases, are in the process of filing.

Financing of your SRED loan takes a couple of weeks from start to finish, in our experience. So your strategy to finance your claim and receive cash for it can often be enhanced by planning early, which is always a good thing in any aspect of business finance.

Speak to a trusted, credible, and experienced financial advisor in SR&ED TAX credit finance to determine how easy it is to monetize that claim and turn that non repayable government grant into cash flow that will accelerate your growth and profits.



7 Park Avenue Financial :

South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8


Direct Line
= 416 319 5769

Office = 905 829 2653

Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com



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 .



' Canadian Business Financing With The Intelligent Use Of Experience '
ABOUT THE AUTHOR
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.



















Article Source: http://EzineArticles.com/4989373



Article Source: http://EzineArticles.com/expert/Stan_Prokop/432698

Thursday, June 29, 2017

SR&ED Finance Loans Ensure Your Cash Flow Refund Arrives…Immediately !











Grab Some Popcorn ! Showing You Why Sr&ED ( aka cash today ) Financing Makes R&D capital investment ‘ efficient ‘ !


OVERVIEW – Information on sr&ed financing loans in Canada. The Sr&ed finance solution accelerates the cash flow recovery of your r&d capital investment









SRED Financing allows immediate cash flow and working capital advantage of our SR&ED tax credit claim. This program is, bar none the best tax incentive program in Canada. Other than being taxable as income the refund you receive from the government is a non repayable grant. Could it get any better? Let's dig in!

Looking for some irony? Top experts tell us that 70% of companies in Canada that are eligible for the program do not even apply, let alone receive their funds!! It clearly is a source of untapped cash flow and working capital for your Canadian business that should be maximized to the hilt.

The other 30% of Canadian firms who use the program utilize it around their efforts to develop new products and services, building prototypes, and solving technological challenges.

So your Canadian controlled private company utilizes and files Sred filings. Did you know your claim can be financing immediately after you file it, literally the same day.

Specialists that work as 'SR&ED consultants are experts in preparing your claim and in Canada your sred claim can be prepared at typical accounting costs or on contingency fee basis with no risk to your firm.

The expertise of your consultant is critical as Ottawa is getting more ' stringent ‘. For the record over 24,000 firms, some of whom might be your competitors, filed last year. Total refunds: 3.5 Billion dollars! The lesson learned? Ensure you're eligible for SRED, and start your process early.

However most Canadian business owners and their Sred consultants do not know that your claim can be financing, either during the preparation of your claim, (yes, before your file, if you qualify!) or immediately on filing of your claim.

Generally with this type of financing you receive immediately approximately 70% of the value of your claim. The other 30% still comes back you of course, but it’s simply a bit of a buffer to cover financing costs and any risk that a portion of the claim will be disallowed or clawed back .

The SR ED financing process? Simple - not complicated. Complete a basic business financing application, ensuring proper back up is in place and valid. That includes info on your company, the Sr Ed claim itself, your previous Sr Ed claims if you have filed previously etc.

The reality is that SR ED financing can be completed within 2-3 weeks of starting the process. The beauty of this type of financing is that no payments are made on the sred loan. In effect you can say that you have factored or discounted the Sr Ed claim. Refunds are for any purpose: reduction of payables, investments in new equipment, additional staff, etc. Bottom line = any general worthwhile corporate purpose.

Know your SRED loan financing options. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can help you fund your sr&ed.



7 Park Avenue Financial :






http://www.7parkavenuefinancial.com


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 .







7 Park Avenue Financial

South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8




Direct Line = 416 319 5769

Office = 905 829 2653




Email = sprokop@7parkavenuefinancial.com



' Canadian Business Financing With The Intelligent Use Of Experience '


ABOUT THE AUTHOR
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.






Sunday, June 25, 2017

SR&ED Financing In Canada : Your Fast Route To Cash Flow Independence In SRED











Can SR&ED Claims Be Financed? Yes they can ! Here's how to get a SR&ED Loan against your refundable sred credit


Information on financing SR&ED claims in Canada. Canada's SRED program provides for refundable tax credits - Financing these claims accelerates... cash flow! Here's why and how






Sr&ed financing, simply speaking, accelerates one of the greatest government programs still currently in existence at both the federal and provincial level.

The formal name for the program is Scientific Research and Experimental Development program. Most people call it simply the SRED (SR &ED) program; we have also heard many people pronounce it as 'SHRED 'also! Even better news? Claims are financeable, so let's dig in.

We put Canadian businesses into two categories when we discuss the program - those that don't know about the program period, and those that know about the program but are not aware that their claims can be financed.

SR ED financing is an excellent source of short term cash flow, and allows a company to reap the benefits, in cash of funds that they have put into R&D.

It is probably useful to do a short overview - let's call it a SR ED primer!

The program is administered at the federal and provincial levels of the Canadian government. It is very important to note that the SR ED grant (yes it's non-repayable) is for Canadian private firms only - it does not apply to public corporations the program is applicable literally to almost every type of firm and industry in Canada. A company files its claim at the same time it files its year end tax return.

In our experience the majority, we feel almost 95%+ of claims are prepared by an independent third party. They have expertise, credibility, and have a strong knowledge of the program and the government requirements. We would further point out that if a claim is not prepared by a qualified third party then there may be an issue in financing the claim - not always, but sometimes.

Claims can be expensive to process and prepare, and in general the industry has evolved into two types of costs associated with the claim. What are those two cost scenarios?

1. Customer pays a third party in full for time and preparation involved in the claim. The customer reaps the full benefits of the claim when it is processed

2. Customer signs an agreement on a contingency basis, and pays the preparer of the SR ED a portion of the claim when it is approved - bottom line he has no cash outlay and the SR ED consultant is at risk re time and preparation involved in the claim.

Let's now focus on financing of the claim. The financing of the claim is somewhat of a boutique industry in Canada, and requires specialized knowledge around the quality and collateralization of the claim. The Canadian banks, as a rule, with only minor exceptions, do not make SR ED loans.

Claims are financed at approximated 70% of loan to value. What do we mean by that? We mean that loans on SR ED are made to 70% of their combined federal and provincial amount. Example - Customer files a claim for $ 300.000.00. The SR ED loan would be for 70% of that amount: = $210,000.00.

Claims can be financed relatively quickly when working with a qualified financing expert in this area. It certainly is possible to complete a transaction in a couple of weeks, from initial discussions.

Naturally some level of due diligence is required on the firm, and we point out that many firms are in fact total start ups and are filing their claim for the first time. An additional financing note is that first time claims are scrutinized more closely as the customer at that point does not have a track record in this area. Track records help the financing.

Looking to cash flow your SRED? Seek out and speak to a trusted, credible and experienced Canadian business financing advisor, who can assist you with your funding needs in this niche area of Canadian business finance,






http://www.7parkavenuefinancial.com


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 .





7 Park Avenue Financial

South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line
= 416 319 5769

Office = 905 829 2653



Email
= sprokop@7parkavenuefinancial.com

' Canadian Business Financing With The Intelligent Use Of Experience '


ABOUT THE AUTHOR

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.













Monday, April 10, 2017

Tax Credit Financing In Canada : Maximized









Information on tax credit financing in Canada. The ability to finance SR&ED and film and digital tax credits is a cash flow acceleration tool



Tax Credit Financing in Canada is a great alternative financing solution for Canadian firms who wish to maximize their Government tax credits. These tax credits typically arise out of the SR &ED (Scientific Research & Experimental Development) program, (commonly called SR ED) as well as various film tax credit programs that are Canadian based.



When you finance a tax credit such as SR ED you are in effect generating cash flow and working capital for your company and of course recovering monies that have already been spent! As most business owners pleasantly discover when they determine they are eligible for SR ED or film tax credits, these funds are non repayable, in effect they are grants .



The acronyms for these programs are SR & ED, FTC, and OIDMTC.



Customers that we work with typically generate financings through us after they have filed their claims. With respect to the SR &ED financings these claims are filed at the same time you file your corporate tax returns. Typically we can generate and successfully complete these financings within 14 days, sometimes it takes longer due to the complexity of the claim and other financial issues your company might be facing. It is critical there are no CRA tax arrears; otherwise your claim will be offset against the arrears. In cases where the tax arrears exist, and are smaller than your claim, we can arrange to pay Ottawa and provide you with the full financing benefits of whets left in your claim.



Canadian business owners and financial managers typically use these funds for short term working capital purposes.



In some instances, particularly in the film tax credit financing area your project can receive funds under the film tax credit financing prior to filing the final claim, provided your project can confirm eligibility. In these instances it is recommended that you can successfully prove you have filed and been approved successfully in previous years.



In cases where your corporate SR & ED claim is a first time claim there is a bit more due diligence put into the quality of the claim and your overall financial position, but categorically these claims can be filed and financing originated on a first time claim. Most companies use the services of well known SR &ED preparers, which accentuate the positive nature of your claim.



With respect to SR &ED claims that are financed, typical financing is generated at 70% loan to value. That of course simply means that you receive, on financing approval, approximately 70% of the total provincial and federal claim as working capital. These funds are repaid in entirety when you claim is adjudicated, approval, and funded by the government, so you are not paying ‘ monthly payments ‘ – you simply receive the working capital injection which is offset on final approval .



Canadian companies who are interested in tax credit financing and film credit financing should speak to an experienced advisor in this area who can assist them in the financing of the claim. It’s a great Canadian alternative financing strategy!



Stan Prokop - founder of 7 Park Avenue Financial
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 13 years - Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing. Info & Contact Details :
http://www.7parkavenuefinancial.com


7 Park Avenue Financial

South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8


Direct Line = 416 319 5769

Office
= 905 829 2653


Email
= sprokop@7parkavenuefinancial.com


' Canadian Business Financing with the intelligent use of experience '


ABOUT THE AUTHOR
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.





Monday, April 18, 2016

Tax Credit Financing In Canada: Refundable Tax Credit SR&ED Loans & SRED Funding Delivers On The Cash Promise














Can SR&ED Tax Credit Financing Make Your R&D Journey Happier ?

We Think So And Here's Why

Information on tax credit financing in Canada. SR&ED loans can play a valuable part in refundable tax credit finance . Here's information on why businesses committed to R&D Capital Investment should consider SRED Funding





Not everyone Canadian business owner or financial manager takes advantage of the Canadian Governments SR & ED (Scientific Research & Experimental Development) tax credit program. It's clearly in our opinion of the best and truly legitimate and valuable programs that a government provides for its business entrepreneurs in Canada.

Many, when they hear of the program for the first, are amazed that they can receive significant funds, that are non - repayable (yes that's non -repayable!) for their ongoing investment in research, product development, business processes, etc.

And, those that do take advantage of the program dutifully wait many months, in some cases a year or so or more for their cheques from the provincial and federal government.

Why not borrow against these funds and utilize those funds for much needed working capital and cash flow to further fuel the growth of your firm.

SR & ED financing is still relatively unknown in Canada - it is clearly a very specialized type of financing, somewhat 'boutique' let us say, in nature.

The government, via the program, wants to provide funds to Canadian business so they can continue to further their research and development and provide Canadian firms with a lead in technology and business.

So lets get back to the financing of the SR ED, aka ' SHRED ', aka 'SR &ED'. SR ED Loans are typically for approximately 70% of your combined federal and provincial claim. The claim can be financed as soon as you have formally filed the claim with the government, which is at the same time you do your year end tax filing.

SR ED applications can be filed for the last two years, so on occasion your firm might in fact have a significant receivable generated by virtue of that filing you have done. Our observation is that some companies actually book that receivable in their financial statements for the full amount of the claim. Some companies take the conservative approach and only record the cash coming in when it is received from the government.

So, you as a business owner or financial manager of a Canadian company are asking yourself the obviously - if I book the SR ED as an account receivable, will my bank provide financing for it. Our experience is generally 'no 'they will not. Canadian chartered banks, being somewhat more conservative in nature, recognize the SR ED claim may or may not be approved. So if there is any risk in your financial structure as viewed by the bank they will not advance funds.

The private sector of Canadian finance is in fact doing the SR ED financing. Claims are financed on the basis of your firms overall financial status, although we add that even pre revenue companies or companies that are losing money can still obtain SR ED financing.

Every Canadian firm that files a SR ED claim should consider financing the claim if they feel the additional cash flow and working capital will assist their company in continued growth and success. Talk to an expert and use this alternative financing as a great way to boost cash flow.


Stan Prokop - founder of 7 Park Avenue Financial
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing. Info & Contact Details :

http://www.7parkavenuefinancial.com


7 Park Avenue Financial

South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8


Direct Line = 416 319 5769

Office
= 905 829 2653


Email
= sprokop@7parkavenuefinancial.com


' Canadian Business Financing with the intelligent use of experience '


ABOUT THE AUTHOR

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.



Monday, January 18, 2016

SRED Tax Credit Financing In Canada & Funding Your SR ED Claim






Special Delivery On Your SR&ED Refund : SRED Loan Financing







OVERVIEW – Information on sr ed tax credit financing in Canada. SR ED Financing is a viable way of funding your SR&ED refund and monetizing that asset today








SRED Financing allows firms that have an r&d program to connect today to the cash flow refund they were waiting for - it's as simple as that . Monetizing that refundable tax credit is, via a SR&ED loan, is a process, as is , of course the whole process of preparing and applying for maximum refund. Let's dig in.


Not all Canadian business owners and financial managers are aware of one of the greatest government programs still currently in existence at both the federal and provincial level. The formal name for the program is Scientific Research and Experimental Development program. Most people call it simply the SRED (SR &ED) program; we have also heard many people pronounce it as 'SHRED 'also!

We put Canadian businesses into two categories when we discuss the program - those that don't know about the program period, and those that know about the program but are not aware that their claims can be financed.

SR ED financing is an excellent source of short term cash flow, and allows a company to reap the benefits, in cash of funds that they have put into R&D.

It is probably useful to do a short overview - let's call it a SR ED primer!
The program is administered at the federal and provincial levels of the Canadian government. It is very important to note that the SR ED grant (yes it's non-repayable) is for Canadian private firms only - it does not apply to public corporations the program is applicable literally to almost every type of firm and industry in Canada. A company files it's claim at the same time it files it's year end tax return.

In our experience the majority, we feel almost 95%+ of claims are prepared by an independent third party. They have expertise, credibility, and have a strong knowledge of the program and the government requirements. We would further point out that if a claim is not prepared by a qualified third party then there may be an issue in financing the claim - not always, but sometimes.

Claims can be expensive to process and prepare, and in general the industry has evolved into two types of costs associated with the claim. What are those two cost scenarios?

1. Customer pays a third party in full for time and preparation involved in the claim. The customer reaps the full benefits of the claim when it is processed

2. Customer signs an agreement on a contingency basis, and pays the preparer of the SR ED a portion of the claim when it is approved - bottom line he has no cash outlay and the SR ED consultant is at risk re time and preparation involved in the claim.

Let's now focus on financing of the claim. The financing of the claim is somewhat of a boutique industry in Canada, and requires specialized knowledge around the quality and collateralization of the claim. The Canadian banks, as a rule, with only minor exceptions, do not make SR ED loans.

Claims are financed at approximated 70% of loan to value. What do we mean by that? We mean that loans on SR ED are made to 70% of their combined federal and provincial amount. Example - Customer files a claim for $ 300.000.00. The SR ED loan would be for 70% of that amount: = $210,000.00.

Claims can be financed relatively quickly when working with a qualified financing expert in this area. It certainly is possible to complete a transaction in a couple of weeks, from initial discussions.

Naturally some level of due diligence is required on the firm, and we point out that many firms are in fact total start ups and are filing their claim for the first time. An additional financing note is that first time claims are scrutinized more closely as the customer at that point does not have a track record in this area. Track records help the financing.

Seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with the ' special delivery' process on your SR&ED refund.




Stan Prokop
- founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com


Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing. Info & Contact Details :
http://www.7parkavenuefinancial.com


7 Park Avenue Financial

South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line
= 416 319 5769

Office = 905 829 2653


Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing with the intelligent use of experience '



ABOUT THE AUTHOR

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.