Financing Tax Pigs ! ? Your SRED ( SR&ED Tax Credits ) Tax Credit Claims Are Still 100% Financeable!

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SR&ED Bridge Loans Still Make Sense And Here’s Why

Information on the financing of the sred tax credit in Canada. SR&ED claims for your tax credits are still 100% financeable – here is why and how!

Ouch! Make that a double ouch! Tax pigs? That was the assessment of one of Canada's leading economics and business professors when it came to Canadian firms who line up (we assume he meant at the trough?!?!) to get their fare share of what he called ' tax preferences' in Canada.



The thrust of the article, which appeared in one of the two leading business newspapers in Canada, was that Canada is losing billions, yes that’s billions with a capital B... to a long list of tax programs from which it derives little benefit.



Those programs include labour funds, the Atlantic tax credit , film tax credits, accelerated deprecation credits ( that’s a new one for us), flow through share credits, GST preferences, and finally SRED ( SR&ED ) tax credit claims .



We won't weigh in on the authors premise, which was pretty well to put these programs on the ' chopping block ‘in order to get government spending in line.



We thought that perhaps we should seek an honest politician for some clarity on the issue , but in the interest of time vis a vis the ' honest politician' oxymoron our point is simply that if certain government tax credit programs such as SRED and film exist , and you qualify and file for them .. Then you can finance them.



The financing of these credits brings valuable cash flow and working capital into the thousands of firms who do in fact qualify for the program.



Let's look at the SRED program. This is the Scientific Research and Experimental Development Tax Credit Program which is a federal incentive. It's administered by both CRA and your respective province and has encouraged over the years thousands of Canadian companies to work on r&d. Private , ie non public firms can earn approximately up to 35% on the first 3 Million they spend on projects that qualify, and 20% on amount in excess.



Canadian business currently uses this SRED credit for claims on wages, material, equipment, and certain overhead allocations.



The question has therefore become, is all this SR&ED tax credit work legitimate, as almost 4 Billion per annum is spent annually in non refundable tax credits for Canadian firms. Over 24,000 firms have applied annually for the credits.



Upcoming federal budgets will soon tell the tale of where SRED is going in Canada.



The bottom line is that if you have a SRED (SR&ED) tax credit there is financing available on the credit. Your credit is monetized either at time of filing, or in some cases in an accrual financing plan as you spend. Claims typically are financed at 70% of SRED value, the other 30% is in essence a buffer.



TAX Credit financing can typically be completed in 14-21 days, with the essential collateral behind the financing of course being the SRED itself



Canadian firms who use the program can claim up tot the last two years of R&D, and the claims are typically prepared by professionals simply known as ' SRED CONSULTANTS.



So, is your firm a tax pig? Seems a bit harsh, and we're still looking for that honest politician find out where SRED tax credit is going in Canada. In the meantime, if you have a claim, and want to monetize it consider talking to a trusted, credible and experienced Canadian business financing advisor for funding your claim.

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.

Stan Prokop

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

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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.

Stan Prokop

SRED Credit Financing In Canada : Moving Cash Flow Success From ‘ Slim Chance’ To Success Via Tax Credit Loans: SR ED Loan 101

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Need A Better R&D Capital Investment Strategy? Consider SR&ED Loans As A Faster Cash Recovery Alternative

OVERVIEW – Information on sred credit financing in Canada. A Sred Loan Accelerates Your R&D Capital Investment ! Here’s Why Tax Credit Loans Make Sense

SRED Credit financing in Canada continues to be a strategic way in which your firm can stay competitive and at the same time take advantage of the cash flow financing benefits that come with a SR&ED loan. We're examining why tax credit loans work! Let's dig in.

While pretty well everyone agrees the Canadian R&D capital refundable tax credit is one of Canada's best programs for maximizing research and development incentives it's unclear that the advantages of a SR&ED are fully understood.


Not only is the program applicable to almost every industry in Canada, but at the same time business owners and financial managers can compound the power of this program by financing your claim via a Sred loan. The key benefit of that loan? Cash for your SR ED claim now!

Let’s recap some of the key aspects of the program as they relate to your ability to monetize ‘your tax credit into real cash flow and working capital now. Also, let’s recap and focus on some current issues in your ability to access and maximize your SRED claim.

If you aren’t filing a Sred claim you certainly can’t finance one. The Canadian government, both federally and provincially reimburse billions of dollars annually to Canadian business in all industries. A few industries seem more tailors made than others for SRED claims, example: Software and information technology.

The SR&ED program certainly doesn't discriminate on any one industry .Your firm can be a commercial bakery, a sign company, a biotech firm, a software development company, or an industrial manufacturer. Bottom line? Every industry is eligible in some manner.

Your claim of course needs to be prepared by a knowledgeable third party. In Canada this essentially is an accountant who is proficient in SRED or a third party commonly called a 'SRED consultant’. Typically, but not always, the consultant you engage will be a specialist in your industry. That's a plus of course but the reality is that even if your firm is preparing your own claim (rare but possible) it can still be financed, although the claim will be subject to some form of due diligence no doubt.

Recently changes in the entire SR&ED process can both help and hinder your firm in maximizing your total sred credit. Naturally the larger the claims the more amount of cash that you can finance under a tax credit financing.

Canada Revenue Agency has clearly focused on streamlining the program - forms are found online at the government website, and in some cases have dramatically been simplified. For example, the new online from limits the overall technical description of our claim to only 1400 words.

In general almost 75% of claims are not fully audited, and are therefore approved and somewhat fast tracked for refund.

How do some of the new forms and rules affect your ability to finance your claim? When it comes to financing your sred claim it is critical to work with an experienced, credible, and trusted third party. Claims are generally financed at 70% of their overall value. Therefore your ability to have your claim fully document, prepared by a credible third party, and fast tracked into the ‘non audit ‘75% of all claim range is a solid sred financing strategy .

We referenced that claims are financed at 70%. That simply means that the larger your claim you can receive immediately, on financing approval .70 cents on the dollar for your claim. You of course still receive the rest of the claim, less financing costs, when your claim is approved and funded by Ottawa.

The SR&ED Loan application process? It couldn't be simpler. A basic application, which is of course supported by your actual technical claim. The sred loan is collateralized by your claim. Our own goal in a completed financing is typically a few weeks start to finish.

If you are filing sred claims in Canada you are among the 15% of businesses that are eligible for this refundable tax credit. Consider compounding the power of the program by financing your claim and accelerating cash flow. Why not compound the power of that government benefit. Cash via tax credit loans can be used for any corporate purpose - including accelerating next year’s research spend!

In summary, that ' slim chance ' of a prompt cash refund can be significantly enhanced via SR&ED financing done efficiently and promptly. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your refundable tax credit funding needs.



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.


Stan Prokop

How To Finance Tax Credit Loans In Canada . SR ED Financing Via A ‘ SRED ‘ Bridge Loan.. Works!

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Everything You Should Know About Financing SR&ED Claims in Canada – More Exciting Than The History Of The Pencil!

OVERVIEW – Information on tax credit loans in Canada. SR&ED bridge loans monetize your refundable ‘ SRED’ tax credits , ensuring instant cash flow for your R&D Capital investment

Tax credit loans, especially a SRED loan under Canada's SR&ED program are arguably one of the best uses (maybe 'the best ‘? ) of the Canadian SR&ED program administered by Ottawa and the provinces. It's a solid way to more quickly recover on your firms r&d investment. Let's dig in.

Our view on SRED loans is pretty simple - it's a way to ' supercharge' your SR ED claim - generating an instant ' cash back '! The reality is that if you have filed a SR ED claim now you can immediately convert that claim into cash flow and working capital now for your business.
To us that's even more exciting than say... the history of the pencil! (In the mid-16th century, a storm uprooted a tree in England's Lake District. Clinging to the tree's roots was a shiny black substance - graphite! We don't know how much truth there is to that story, but we do know that just a few decades later, the site had been transformed into the first commercial graphite mine.

It's also not a secret why thousands of Canadian businesses utilize the program - it allows firms to stay competitive in today's ultra competitive environment - it's not secret everyone’s going global as an example.

In talking to clients we get two constant questions in the area of ' SR&ED"

" Why should we financing our SR ED claim
" How do we finance that claim?

Your firm’s ability to utilize a SRED bridge loan to inject working capital into your business is clearly the key advantage. Remember also that financing your claim is not the process of taking on more debt; you are simply cash flowing or monetizing that SR ED receivable now, in an effort to use that capital to continue and grow your business. Many firms we work with consider their SR ED claim as the largest receivable they will have that year.

We hear ' timing is everything'. If you have filed a first time SR ED claims it certainly would not be out of line to say that you might have to wait close to a year for your funds. Remember of course those funds are non - repayable. So if you have cash coming a year from now why, and its non repayable, why wouldn't you consider financing your claim and putting that cash to work now.

How do businesses typically use the proceed of their Sred loans? Most common uses include, but are not limited to:

" Reduce payables
" Purchase new equipment
" Invest in marketing
" Start your new Sr ed process for the next fiscal year

The reality is that its company's funds use them as you would another other injection of working capital. AKA ' any general corporate purpose'!

How are claims financed? The process, with an expert in tow, is simple. It involves a basic business application, the usual due diligence around any type of financing (info on your company, owners, etc) and the documentations that collateralized the SR ED into an asset to be financed.

To say that sred financing is a boutique and niche industry would be an understatement. Would you consider entering into a new business without the benefit of working with an expert? We don't think so, so seek out a trusted, credible and experienced advisor in your area to maximize your Sr Ed loan.
Finance loan amounts are typically in the 70% range of your total federal and provincial claim. Sr Ed is a national program and your sred claims can be financed in any province in Canada.

In summary, business owners should avail themselves of the SR ED program. They should also consider financing their claim which allows them to inject working capital immediately into their firm. Speak to an experienced credible advisor in the area and maximize the benefits of this great Canadian program.


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.


Stan Prokop

Film & Sr Ed Tax Credit Financing In Canada : Making Sense Of Tax Credit Loans

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Exactly What It Means To Finance Tax Credits In Canada :

Good News On Your Film & Sr&ed Credits!

Information on tax credit loans in Canada. Film tax credit financing and SR&ED finance funding can play a key role in your cash flow needs. Here's your why and how !

Film Tax Credit Financing in Canada is a niche alternative financing sector that is growing in popularity. Similar to SR & ED tax credits, film tax credits can be financed.


Various programs are available under different provincial and federal legislation. The Canadian film industry, as well as related Digital and Multimedia industries, seem to be on a healthy rebound which we can attribute to a recovering economy, and a faltering industry in the U.S., again, economically related.


There are a number or very specific programs that can be financed to generate, or recover, funding for your projects. Along with the aforementioned SR &ED program, there is the Ontario Film and Tax Credit, a similar B.C. program, etc.


In many instances our firm can originate financing on an interim basis, in order that your project does not have to wait for funding after completion and final claim finalization and adjudication. Much of the financing that is done in the SR ED, film tax, and Digital and Multimedia areas is a very boutique and specialize financing. However. If you clearly qualify for these programs your claim can be financed. Traditional institutions, such as the Canadian chartered banks do not really play a major role in these types of tax credit financings.


Naturally the benefit of financing such a claim is simply the recovery of funds, almost all of which are ‘ non- repayable ‘ ‘ grants’ that will assist Canadian firms in the completion of their projects and for general working capital purposes . If your firm has significant or major contracts with either the government or a corporate client you require financing to complete the project in a timely and proper manner.


Tax credit financings, in our experience typically take approximately 2-4 weeks to complete. We strong recommend that firms work with a trusted and experienced advisor in this area to ensure they maximize the benefits of such a financing with respect to a solid rate, term and structure based on the unique nature of their claim.


Financing of these programs encourages continued innovation, and more and more funds are available for the film, multimedia, and digital sectors of Canada. Again, we stress the importance of working with qualified parties who can maximize financing benefits and assist you with your working capital needs.


‘Cash flowing’ your project either during or after production has a significant appeal to players in this Canadian industry sector. Naturally there has to be a reasonable investment of time in key areas related to the financing. In order to finance a claim properly entities should be incorporated as a Canadian taxable corporation and should have made the appropriate corporate filings. Naturally your project has to be certified, which can be done through various entities such as Cavco. Financing and documentations is clearly strongly associated with proper and up to date filings and certifications.


Accounting systems and processes typically might not be the forte of firms in the digital, multimedia and SR &ED sector – however it is important that owners and financial managers in t these industries ensure all costs are properly accounted for and documented in their financial statements and tax filings. Filings should be up to date with all federal and provincial bodies with respect to tax returns, and of course your application will be reviewed and audited by the proper authorities.


In summary, Canadian digital, multimedia, film and SR &ED expenses can be financed to maximize your firm or projects working capital. Ensure you are certified and eligible, focus on good accounting and information systems re your claim, and work with a trusted and credible advisor with financing experience in this area. It’s all about the 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.


Stan Prokop

SRED And Film Production Tax Credit Loans : Let Financing Be The Way Out

Don’t Let The Cash In Your SR&ED And Film/Animation Tax Credits Keep You Up At Night

OVERVIEW – Information on tax credit loans in Canada, Financing Sred and FILM production tax credits alleviate the waiting game when it comes to cash flow, working capital and investment recovery






Tax credit loans around the gov’t SR&ED program in Canada, as well as the similar credits available in the film/TV and animation industry in Canada have a lot of business owners and executives being kept up at night. Your ability to access the cash in federal tax credit programs should not be a worry, concern, or mystery that some might think it is. Let's dig in.

Some might question why we are grouping two different tax credit programs together for our discussion. Our answer is simple - both credits are financeable, they are financed in somewhat of a similar manner, the financing in both cases alleviates the waiting for the government cheques, and again in both cases SRED credits as well as Media credits provide valuable cash flow and working capital to current and future projects in either R&D and Media.


We think we can be further forgiven on that issue simply because it’s very possible to actually file SR&ED claims in film, animation being a good example of that.

Whether Canadian taxpayers like it or not these two programs provide Billions of dollars every year to claimants of SRED or Media Credits. In the film industry that has garnered Canada the reputation of Hollywood North,

and in SR&ED Canadian firms strive for innovation and market leadership in their industry and niches.

Let's take a look at the SR&ED program as it relates to preparation and financing of claims. It's important to ensure your claim is eligible, and both the government and the financier of your claim wants to minimize questions and fast track approval. Here the role of the SR&ED consultant is key. More often than not the consultant that prepares your claim has specific industry expertise and understands your field of endeavor.

When it comes to the financing of your claim we point out to clients that it's sometimes more challenging to finance your claim if it is prepared by yourself. Financiers like to get a strong sense of eligibility and chances of full approval. Many clients we meet have utilized the same consultant for years and actually have good dialogue with CRA auditors on an annual basis. That's a good thing!


In the Media/Transmedia industry (film, television and digital animation) federal and provincial programs focus heavily on providing tax credit incentives based on amount spent on productions which in turn generates taxes, employment, etc.

Again, similar to our R&D credits a combination of federal and provincial credits in Production, Service and Digital Media are available to Canadian productions and co-productions with qualified U.S. and international partners. These credits can often fund 40-50 % of a budget based on the point system that your Tax Credit Accountant calculates and presents.

Again, drawing to our similarity of these two major refundable tax credits both are financed in a very similar manner. Financings are structured as bridge loans, almost always with no payments being made during the term of the loan. A typical financing is 70% of the total value of your SRED or Media tax credit, the combo of federal and provincial claim. You receive the other 30%, less financing costs when your claim is funded by the government - the proverbial ' the chq is in the mail'.

If you're looking to maximize or replenish working capital, start on new projects, or recoup owner investment consider monetizing your tax credit in these two exciting areas of Canadian business.

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 your needs around tax credit loans for SR&ED or Media. Finally, no more being kept up at night - financing your investments is a logical way out.



Stan Prokop - 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 90 Million $ of financing for Canadian corporations . Info /Contact :

7 Park Avenue Financial = Tax Credit Loan Financing Expertise In Canada




Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?

CONTACT:

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

Fax = 905 829 2653

Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing with the intelligent use of experience '

Stan Prokop