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.



Friday, February 18, 2011

Let Canadian Film Tax Credit Financing In Ontario And BC Finance Your Productions!


It's no mystery to us, that’s for sure. Canadian and U.S. content owners and producers are taking the 'flight to safety' , using Canadian film tax credit financing for Ontario , BC, and quite frankly all Canadian geographies for their financing needs .

Why that flight to safety? Why is Canada so under consideration these days when it comes to the film tax credit? (Film, television and digital animation) Well, just this week we caught three separate headlines out of U.S. states such as Michigan hinting strongly that tax credits will be pulled back, repealed, diminished, etc. Bottom line, less!

That certainly isn't the case in Canada, where a proper filing and certification of your claim (that is key) can net you anywhere for 30- 45% of your total production budget expenses. Help us understand, but isn’t that amount of assistance very valuable in allowing you to obtain the balance of your financing, through debt, equity, pre sales, product exposure, distribution, etc,.

The tax credit, furthermore, can be cash flowed to help monetize your project for working capital and cash flow as you go through your production spend.

Canada, similar to other geographies such as Australia, firmly seems to believe the payback in revenues, taxes, and general economic activity justifies the investments being made in your project.

Co - productions, when they qualify are eligible for the same sort of financing and assist you in attracting and finalizing the additional finance you need to complete your project.

When you finance the tax credit naturally the credit itself is the collateral for the loan - it’s in effect a bridge loan to get you the funding you need now or at the completion of your project. You do have the choice to simply wait for your non repayable cheque, but most independent producers prefer the pay me now to pay me later approach!

From a structuring viewpoint the tax credits sit kind of in the middle of your equity and senior financing, although if you borrow against the credit the credit it must be collateralized properly.

So how does payment work on a Canadian film tax credit financing for your Ontario and BC productions? Payments are great, generally there are none! That is to say that your advance on the tax credit - typically anywhere from 50-70% (sometimes more) is simply netted against your final cheque from the government, less the financing costs. Almost always no additional collateral is required, although the promise to pay of your Special Purpose Vehicle for the project is of course required.

Use Canadian film tax credit financing to enhance your overall profit potential on your project - don't give up additional equity or future profits you don't need to. Speak to a trusted, credible and experienced Canadian business financing adviser who can steer you through the film tax credit funding process, quickly, efficiently, adding profit potential to your venture.

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Stan Prokop is founder 7 Park Avenue Financial ; see

http://www.7parkavenuefinancial.com

Originating financing for Canadian companies,specializing: working capital, cash flow, and asset based financing , the 6 year old firm has completed in excess of 45 Million $ of financing for companies . For info / free consultation on Canadian business financing / contact details see:

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





1 comment:

  1. Dear Stan , i know the Tax Cedit bit sounds a bit too comfortable but its Not so for those getting Started , also for those who belong to Countries which do not have Co Production Treaties ,although Canada has the Largest No of Treaties " 53 " i have had the benefit of contact with Bruce Fleximan of ,President, Intl financial Centre BC and also with Richard Brownsey of BC Film , but for Indians its still along way , even though a Co Production Treaty is Underway , i believe. So i guess it remains Only for US Based Filmmakers. Best. Sudhanshu

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