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

Film Tax Credit Sources Let You Beat The Challenge Of Film TV And Digital Production Success. Financing Credits Works

Lights ! Camera ! Financing!



OVERVIEW – Information on film tax credit sources in Canada. Financing federal and provincial tax credits is a key part of successful Transmedia finance




Film Tax credit sources allow Canadian producers of film, TV and digital media content to fast track their productions. Having said that it's never easy in that world to beat the clock when it comes to completing the financing of projects in those 3 genres. But, as we maintain, financing those tax credits is a key part of any successful project these days. Let's dig in.

Whether the individual tax payer likes it or not Canadian provincial government, as well as the ' feds ‘are quite committed to subsidizing Canadian media via tax credits. Participants in the industry love it when the different provinces that compete for your production square off and try to ' one up ' each other when it comes to the generosity of these funds.

Just the credits for your labor costs alone are generous on their own, often totaling 35-40 per cent depending on what province you are shooting or producing in. Quebec’s is actually at 45% when it comes to labor.

While many pundits feel this all is just one example of a type of ' corporate welfare ' we can only suggest to clients that they make the most of current legislation and funding. We do recognize that there are a lot of taxes and jobs and economic activity around this quite thriving industry.

The concept of film (and TV and digital media) tax credits is quite simple. You receive cheques for a percent of your expenditures on your project. It's as simple as that. Canadian tax credits as a percentage of your expenditures are among the most generous in the world, and coupled with the stability of Canada’s financial system as well as our diverse geographies and talent pool simply make a case that Canada has... you guessed it.. earned the name Hollywood North.


Film tax credit sources address just one part of the overall ' capital cycle ' of any production. The other components of course include the owner equity component, debt, pre-sales, Print and Advertising, etc. Times always change in the world of financing and in film, TV and media finance these days ' crowd funding' is the hot new kid on the block, an alternative to the previously mentioned equity component.

The other new trend is ' slate ' financing, allowing producers to generate financing for multiple projects.

In Canada there are a small handful of bank financing sources for film tax credits. Another alternative is commercial finance entities that are generally faster when it comes to addressing your financing need. They have ' niche' experience in your industry.

Tax credits are generally financed at 70% loan to value, are typically structured as ' bridge loans' with no payments made until your tax credit is monetized by the government. Key to successful tax credit financing is your ability to have a credible team around your production, including strong tax credit accounting expertise to ensure you qualify for maximum financing.

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in financing the value in your tax credit.



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 - has completed in excess of 80 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 re: Canadian business financing & contact details :


7 Park Avenue Financial = Film Tax Credit Financing Source Expertise

Have A Question Or 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
Phone = 905 829 2653
Fax = 905 829 2653
Email = sprokop@7parkavenuefinancial.com













Stan Prokop

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

SRED 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 fair 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.





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 7 years - has completed in excess of 80 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 re: Canadian business financing & contact details :

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

Discuss Among Yourselves - Financing SR ED ( SR&ED) Tax Credits Turns Your Claim Into Business Cash Flow Loan - SRED Claims Finance

Financing Your SR&ED Claim Is Still A Great Cash Strategy


Information on SRED ( SR&ED ) tax credit financing in Canada . A SR ED loan or the financing/discounting of your SRED Credits and claims monetizes your claim into valuable working capital .





So, the excitement continues to build, SR ED tax credits are a large part of the focus on what the government of Canada should be doing to help Canadian firms with their research and development. SR&ED claims total in the billions of dollars and have come to the attention of a lot of players in the private and government sectors. It's a pretty basic discussion, revolving around the question ' Is the SRED tax credit still working for government and business.

Let's highlight some of those issues, and key info on the program, but, most importantly, lets re enforce one key point - if you have a SR&ED claim you can still finance it , all the turmoil around the program notwithstanding ! And we'll show you how.

We hate weighing in on all those debates on the program, quite simply ours is to finance! But we guess it’s important that some of the key issues should be highlighted, and of course any major changes to the program will in fact probably affect how claims are financed.

So what the problem? Simply speaking it's that prudent people want to ensure that the tax system and the innovation around things such as tax credits work.

A lot of the discussion seems to revolve around what happens after Canadian business owners file their SRED claim. Simply speaking, the discussion is all about ' commercialization ' of the work and funds that go into those SR&ED credit claims. Currently the actual credits are primarily only available to private companies and there seems to be some discussion about moving the program into the public company sector. That seems to make sense because it would seem some early stage companies actually don’t go public via an IPO or RTO simply because of the fact they would lose their valuable SR ED claim status, and the non repayable cash flow that come from that program.

A number of current factors make the up calculation of the total combined provincial and federal tax credit SRED claim. Under the current guidelines companies can receive up to 1/2 to 3/4 of all they spend on key documentable Sred.

So it’s an interesting time for the SR ED tax credit. To the many hundreds of sred consultants out there who prepare claims we can only imagine where their heads are at these days.

But as we said, the one constant of SR&ED is that you can still continue to cash flow and monetize your claim via a SRED Loan. In fact the industry has gotten more creative and many financings are now done prior to the actual filing of the claim. This concept is called accrual financing and it simply means you recoup your expenses as you spend. Now that’s a true financing benefit for firm who can use the SR ED claim cash flow to survive and grow. (And we guess hopefully commercialize their products also!)

The financing couldn’t be simpler. be prepared to document your SR&ED work through your consultant or internal team. Claims are typically financed at 70% of total value, and no payments are made during the loan outstanding period.

Consider talking to a trusted, credible and experienced Canadian business financing advisor on monetizing your tax credit for critical cash flow.





AUTHOR - STAN PROKOP

7 PARK AVENUE FINANCIAL

CANADIAN BUSINESS FINANCING !

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

Are SRED ( SR&ED ) Tax Credits Dead ? We Hope Not! SRED Financing For Your SR ED Credit Claims Is Alive & Well !

SRED Loans and Financing for SR&ED Claims – Financing Today For Your Filed or Unfiled Claim!

Information on the financing of sred tax credit( sr&ed) claims in Canada. A bridge or factoring loan on your sred credits makes working capital and cash flow sense.




Sweating bullets. Always a favorite expression for some serious worrying. That surely must be the case for thousands of Canadian firms and the industry consultants who file SRED (SR&ED) claims in Canada for their non refundable tax credit monies for their R&D processes.

We're not going to weigh in on whether these tax credits are justified, not justified, or who screwed things up, but we will say one thing - Your Sred financing is still alive and well. In fact in some ways it just got better, and we'll talk about that also.

Thousands of Canadian firms receive a total of billions of dollars every year from the Government of Canada for their research and development costs. A large portion of their total costs in several categories of R&D, i.e. labor, comes back to them in the form of a refundable cheque.

Naturally getting monies back for your SRED claim is a huge and positive issue for thousands and firms who are either start up, pre revenue, or who simply... you guessed it... need the cash. Many of our clients actually book the claim they file as a receivable, in effect non refundable monies coming back into their company .The claim is, of course, a combination of funds from both the federal and provincial government. Sred claims are separate from other grants and schemes such as IRAP, etc.

So, getting back to the one thing we want to emphasize today, and that’s ' cash flow '! Naturally it’s a free country and if you want to wait to get your funds back from the government by all means do that. But consider also that you have another option, which is to finance your claim. In Canada SRED claims of almost any size can be financed. While larger claims make more economic sense claims generally in the 80k and higher range certainly are financeable.

So how does the financing work? You should consider this as quite a ' normal ' business financing. (Is any business financing normal these days?!) . The basic application involves info on your firm such as your financial, projections, etc, info on the owners, and copies of the actual claim itself.

SRED claims have tended to be prepared by a group of people in Canada who term themselves SRED consultants. They work on either a contingency basis or a fee basis. We've been watching the SRED battle from a distance and some people are making the claim that the sred consultants themselves have become a part of the problem in the industry.

Let’s use 2 Billion dollars an example. If the federal government gave out 2 Billion dollars it’s the SRED consultants who worked on contingency that receive anywhere from 15- 30% of all these funds as fees. That makes a case for not a lot of value for the country from a pure R&D perspective. Anyway, we promised not to weigh in on that one, so we won’t.

What we are saying is that if your claim is properly prepared, by either yourself or a qualified sred consultant then it’s financeable.

SRED Financing claims are financed at, in general 70% loan to value. We spoke of new developments in the industry as far as financing the sred credit .The good news is that most claims are now financeable as your spend, prior to filing, This is called Accrual sred finance, and gives you cash flow reimbursement as you spend .

Is there a bottom line today? As always, there is. It’s simply that we kind of hope the sred program stays around for all those legitimate firms and consultants who see the true value of the program. And consider financing your tax credit for increased working capital and cash flow. Speak to a trusted, credible and experienced Canadian business financing advisor on Sred Tax Credit finance today.





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 7 years - has completed in excess of 80 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 re: Canadian business financing & contact details :



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