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 film tax credit incentives. Show all posts
Showing posts with label film tax credit incentives. Show all posts

Tuesday, January 26, 2021

SR&ED Claims Financing In Canada | Film Tax Credits

SR ED Claims Financing Film Tax Credit Incentives |7 Park Avenue Financial







Just How Good Is SR&ED Program Claims Financing And Bridge Loans For Movie Tax Credits?


SR&ED Claims financing and the finance of film tax incentives in Canada eliminate the ' victim' part of these two solid government programs.  The        ' victim' part arises when a lot of work and effort and by Canadian business people leads them to ' waiting ' for their claims to be finalized and funded. Let's dig in.

 

CANADA'S 2 MOST POPULAR REFUNDABLE TAX CREDITS FOR FINANCING CONSIDERATION

 

Let's examine some key benefits in financing tax credits under 2 of the most popular programs in Canada -

 

SR&ED (Scientific Research and Experimental Development)

 

Film/Digital/Television Tax Incentives

 

 

CANADA'S SCIENTIFIC RESEARCH AND EXPERIMENTAL DEVELOPMENT PROGRAM - AKA  ' SR&ED"! 

 

Similar to programs in the U.S. the Canadian government funds research via R&D  sr ed tax credits. Here's one case where the ' little guy' often benefits more than larger and sometimes publicly traded companies in Canada. Private ( i.e. not publicly traded ) firms receive billions of dollars of funding in Canada for recovering a large percentage of the monies they spend on salaries, contractor cost and overhead as these relate directly to research.

 

WHY WAIT FOR CASH REFUND UNDER THE SRED PROGRAM - FINANCE YOUR CLAIM

 

While the thousands of firms that receive funding might find their claims a little smaller these days (example: equipment purchases related to R&D no longer qualify) the ' cashback ' benefit of the combined federal/provincial program can't be denied.

 

PREPARING YOUR CLAIM WITH YOUR SR&ED CONSULTANT 

 

Prior to considering SR ED claims financing a tremendous amount of work, and some risk goes into claim preparation for the Canada Revenue Agency. From software firms to mfg companies all across Canada third parties known as ' SRED Consultants ' prepare and file claims. The majority of claims prepared seem to be on a contingency basis, with the SR&ED consultants bearing the risk in time and costs in your claim preparation. In return for that, they typically take a fee of 15-30% of the total claim. Naturally, business owners also have the choice of simply paying for a qualified SR&ED practitioner on a straight fee for service basis.

 

While the government has clearly made things easier for claimants, i.e.

 

 

IT'S EASIER TO FINANCE YOUR SR ED CLAIM  THESE DAYS! 

 

Self-assessment tools to help guarantee approval success

 

Simplified and shortened online application

 

none of that takes the ' waiting' out of your cash refund.

 

FILM TAX CREDITS/ DIGITAL MEDIA TAX CREDITS : KEY ELEMENTS OF FINANCING YOUR PROJECTS

 

Media credits in movies, TV and animation, also under the auspices of federal and provincial programs, take a lot of the risk out of the task of financing projects. Traditional bank type financing is difficult to achieve for smaller independent producers. The complex web of financing a project involves a lot of moving parts:

 

Pre-selling your project

 

Consideration co-producers to complete funding

 

Owner Equity

 

Product placement/sponsors

 

'GAP' financing (a ' bridge' between production and future sales potential)

 

UTILIZE A GOOD FILM TAX CREDIT ACCOUNTANT

 

Have we forgotten anything?  We sure have! It’s the generous film tax credit incentives that monetize a large part of the costs of production of any project. In many cases of 40-50% of a qualified budget can become a tax credit refund to owners. Claims are best prepared by experienced film tax credit accountants - specialized folks who maximize claims.

 

While some might argue there is little in common between producing an animated film versus striving for improvements in software, biotech, mfg, or robotics the one constant is the finance ability of either of these two programs.

 

 

 HOW TO CASH FLOW YOUR REFUNDABLE SR&ED PROGRAM  AND FILM TAX CREDIT CLAIM 

 

While owners can choose to wait for months, perhaps up to a year for recouping funds under either program they also have the option to ' cash flow' their tax credits. 

 

Tax credit loans for SRED R&D TAX CREDIT CANADA  and Media credits are financed very similarly. Bridge loans will advance typically 70% of the combined value of the federal and provincial claim. No payments are made during the loan period. When the government approves and funds your credit you receive the balance of the claim, less financing costs that are typically priced at ' mezzanine ' type rates.

 

CONCLUSION 

 

If you feel you can benefit from the immediate financing of film tax credit incentives and SR ED projects seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in claim finance under the tax incentive program.

 

P.S. Yes, it's true;   claims can also be financed prior to formal submission to government of Canada bodies.

 



7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8


Direct Line = 416 319 5769



Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com

Click Here For 7 PARK AVENUE FINANCIAL website !




7 Park Avenue Financial provides value-added financing consultation for small and medium-sized businesses in the areas of cash flow, working capital, and debt financing.



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. He is an experienced

business financing consultant

.

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 financing 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.


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








7 Park Avenue Financial/Copyright/2021

Sunday, February 9, 2014

SR ED Claims Financing In Canada. Don’t Be A Victim Of The Waiting Game in SRED And Film Tax Credit Incentives





Just How Good Is Movie tax credits , SR&ED Program Claims Financing Via Bridge Loans ?


OVERVIEW – Information on financing s red claims and film tax credit incentives . These credits , financed properly and in a timely fashion can provide valuable cash flow
and working capital to business owners in industry and project owners in media ( film/tv/animation)




SR&ED Claims financing and the finance of film tax incentives in Canada eliminate the ' victim' part of these two solid government programs. The' victim' part arises when a lot of work and effort and by Canadian business people leads them to ' waiting '
for their claims to be finalized and funded.
Let's dig in.











Let's examine some key benefits in financing tax credits under 2 of the most popular programs in Canada -

SR&ED (Scientific Research and Experimental Development)

Film/Digital/Television Tax Incentives



Similar to programs in the U.S. the Canadian government funds research via R&D tax credits. Here's one case where the ' little guy' often benefits more than larger and sometimes publicly traded companies in Canada. Private ( i.e. not publicly traded ) firms receive billions of dollars of funding in Canada for recovering a large percentage of the monies they spend on salaries, contractor cost and overhead as these relate directly to research.

While the thousands of firms that receive funding might find their claims a little smaller these days (example: equipment purchases related to R&D no longer qualify) the ' cash back ' benefit of the combined federal/provincial program can't be denied.

Prior to considering SR ED claims financing a tremendous amount of work, and some risk goes into claim preparation . From software firms to mfg companies all across Canada third parties known as ' SRED Consultants ' prepare and file claims. The majority of claims prepared seem to be on a contingency basis, with the SR&ED consultants bearing the risk in time and costs in your claim preparation. In return for that they typically take a fee of 15-30% of the total claim. Naturally business owners also have the choice of simply paying for a qualified SR&ED practitioner on a straight fee for service basis.

While the government has clearly made things easier for claimants, i.e.

Self assessment tools to help guarantee approval success

Simplified and shortened online application

none of that takes the ' waiting' out of your cash refund.

FILM TAX CREDITS:


Media credits in movies, TV and animation, also under the auspices of federal and provincial programs, take a lot of the risk out of the task of financing projects. Traditional bank type financing is difficult to achieve for smaller independent producers. The complex web of financing a project involves a lot of moving parts:

Pre-selling your project

Consideration co-producers to complete funding

Owner Equity

Product placement/sponsors

'GAP' financing (a ' bridge' between production and future sales potential)




Have we forgotten anything?








We sure have! It’s the generous film tax credit incentives that monetize a large part of the costs of production of any project. In many cases of 40-50% of a qualified budget can become a tax credit refund to owners. Claims are best prepared by experienced film tax credit accountants - specialized folks who maximize claims.

While some might argue there is little in common between producing an animated film versus striving for improvements in software, biotech, mfg, or robotics the one constant is the finance ability of either of these two programs.

While owners can choose to wait for months , perhaps up to a year for recouping funds under either program they also have the option to ' cash flow' their tax credits .

Tax credit loans for SR ED and Media are financed very similarly. Bridge loans will advance typically 70% of the combined value of the federal and prov. claim. No payments are made during the loan period. When the government approves and funds your credit you receive the balance of the claim, less financing costs that are typically priced at ' mezzanine ' type rates.

If you feel you can benefit from the immediate financing of film tax credit incentives and SR ED projects seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in claim finance.


P.S.
Yes, it's true; claims can also be financed prior to formal submission to government bodies.




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 = SR&ED And Media Tax Credit Financing Expertise




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 '