Canadian Film Tax Credit Financing

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Film Tax credit financing for film, animation, and digital media productions continues to be a sought after financing by Canadian entrepreneurs.

Canadian entrepreneurs are fortunate in that a number of recent changes have been made to enhance the overall viability of Film and Television credits in Canada.

Using Ontario as an example in March 2010 the government enacted legislation that increased Ontario Computer Animation credits. Therefore financing of such projects simply brings in additional capital. As an example labour expenditures which are qualified and vetted increase to 100% for arms length employees who don't have incorporation status - for example 'freelancers'.

In the animation and visual effects area there was a government focus to remove the requirement that effects had to ' primarily ' be completed with digital technologies.

How can these film tax, TV, and digital media credits be financed. Financing these tax credits is a very boutique business in Canada. Entrepreneurs and their advisors are cautioned and advised to work with credible, experienced specialists in this niche financing area.

The film tax credit financing (as well as animation, TV, etc) is essentially a bridge loan when your production entity has a financing need.. The amount financed can be a combination of federal and provincial claims, and it generally recommended that the total value of our claim be in the 200, 00.00$ range, which would be a combination of both the federal and provincial portions of your credit.

We meet with many firms who also have needs for other types of financing, which would include separate SR ED (SR&ED) credits, equipment financing, etc. It would sometime make prudent sense to consider a financing that satisfied the complete needs of the company or production.

The hottest new sectors of financing in this area are the popular animation, virtual reality and of course gaming areas of consumer entertainment.

Naturally to be able to finance a claim it must be reviewed and processed by the appropriate tax credit office, for example the Ontario ' OMDC ' tax credits & Financing Programs Dept '.

In our work with clients we advise that it typically takes 2-3 weeks, sometimes longer to finance a tax credit. This process should not be daunting for the entrepreneur or your production company, as it mirrors any other financing business might undertake- for example an application form, due diligence, legal documentation of the financing, etc.

We would point out though that the main emphasis on the financeability of your claim is the actual tax credit itself, as in many cases the product has not 'gone to market 'so to speak.

Financing your film, multimedia, and TV tax credits is a great way to access bridge capital and allow our entity to immediately access funds, as opposed to waiting for funds until post production and commercialization.

Talk to a film tax credit financing expert and you are on the way to a unique method of financing your productions.

STAN PROKOP
PRESIDENT
7 PARK AVENUE FINANCIAL
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




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



















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


Article Source: http://EzineArticles.com/4013999

Effective Sr&ed Tax Credit Financing : Using A SR ED Loan For The Right Reasons

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Should You Cash Flow Your SR&ED Tax Credit ? Only If You Want The Funds Today!

OVERVIEW – Information on sr&ed tax credit financing and why a sr ed loan can increase working capital and cash flow and is an effective use of the government sr&ed program which provides billions of dollars of non repayable cash to Canadian firms.

SR&ED Tax credit financing is all about making the most out of a good thing. That good thing is of course the SRED tax credit program that refunds your R&D capital investment. It's important you contemplate that type of loan for the right reasons - that's just solid business sense. Let's dig in.

We're covering off exactly what you need to know about maximizing your participation in what’s known as the Canadian governments Scientific Research and Experimental Development offering; in the layman's world call it the SR ED, or SR&ED program. Leave it to the government to use that formal terminology and acronyms.

Whether you have never heard of the program at all, or are a first time claimant for your share, or , if you are one of the lucky ones and have been filing for years for your share of the 3 Billion dollar pie you are clearly in line to hear some great news .

What is that news? It's simply that for the right reasons your ability to cash flow, monetize, borrow against, factor, whatever you want to call it , your sred tax credit can be an effective way of increasing your working capital and cash flow .

Frankly it's really simple. Your company is eligible for a refund on expenditures that have been verified under the program for R&D expenditures. Thousands, and we mean thousands of businesses, many of them your competitors, are receiving cheques from the government, that are non repayable for your investment in R&D processes, products and services.

If you are not missing out on filing your claims are you missing out on effective sred tax credit financing. You just might be. We strongly believe that utilizing a sr ed loan for the right reasons . That reason - staying ahead of the cash flow game!

Let's examine why effective sred tax credit financing via a sr&ed loan makes sense. The main condition? Your firm needs cash flow and working capital for payables reduction, further investment, equipment, and general operating expenses! Who doesn’t?

Monetizing your sred tax credit is simply borrowing against a rebate that is coming to you from the federal and provincial government via your sred claim. Is there anyone in the room that disputes funds today are better than funds tomorrow? We don't believe you will argue with us on that.

If you are part of the program, or considering the sr&ed program from a participation point of view you should consider financing your claim after it's completed. In actuality you can finance it immediately after it's filed, or in many cases, as you are expending funds! By the way, you can also fund your tax credit before it's filed!

SR&ED financing is simply the monetizing of that account receivable (that's really what your sred claim has now become) to use the cash for any worthwhile corporate purpose. A sr ed loan for the right reasons allows you to increase cash flow , and simply stay more competitive - which you probably already are given you are investing in r&d type work .

Effective sred tax credit financing works best when it’s done quickly and efficiently at competitive rates - no payments are made by your firm and the proceeds of your sr ed loan are netted against the final cheque your firm is due .

Remember, you've got choices - you can play the waiting game and wait 3, 6, or 12 months for your sr&ed cheque. By all means do - but remember your competitor got their cheque today by effective use of a sr&Ed tax credit finance strategy. That's something to think about.

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who's an expert in refundable tax credit finance.

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.

Stan Prokop

SR&ED Financing Helps Eliminate Your Innovation Rut ! SR ED Refundable Tax Credit Loans In Canada

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The Harsh Truth About R&D Capital Investment In Canada ! A large part of your investment is refundable!

Information on SR&ED Loans In Canada. Financing  SR ED credits monetizes and cash flows your R&D capital investment. Here's why and how to finance  refundable tax credits

Sr&ed Factoring, or in effect the financing of your Canadian SRED claim is a unique and innovation method of financing your tax credit. For many Canadian business owners and financial managers the amount that their company has invested in research and development of innovative products and services represents a significant amount of their budgets.

Naturally Canadian business appreciates the amount of funds that the Canadian government refunds as non-repayable cash grant for your firms investment into product and technology advancement.

When we meet with customers who wish to finance, (factor) their SR&ED claim it's all about timing. They want to get the immediate benefit of that cash flow and working capital back into their firm. The financing of the claim is the way to do that - it's a case of immediately receiving the cash refund for your claim as opposed to having to wait anywhere from several months to a year to get the refund. And if your firm is filing a SrEd claim for the allowable period of two years prior well that cash flow and working capital has now doubled and provides a significant amount of cash flow if you finance the claim today.

As we have stated the whole scenario of financing a Sr&Ed Tax credit is essentially the process of factoring, or 'discounting the claim '. We would point out that the whole process is applicable to film tax credits also, which a growing and robust industry is given that the government has heightened its grants in many areas of film tax credit financing.

So whats involved in monetizing your SR&ED claim? And perhaps as important, what amount of funds can you get today for the claim. We have stated the claim is discounted or factored - business factor because they need immediate access to cash when current assets such as accounts receivable cannot provide cash flow in a manner that allows your firm to have the working capital it needs. In some cases the factoring of receivables or a SR&ED claim may be one options for cash flow generation, however in a great deal of the cases it in fact is the only option. That is because Canadian banks are reluctant to finance SR&ED claims because of the partial uncertainty in the final approval of the claim, and the reality is that many Canadian small and medium companies currently are challenged in obtaining all the business financing they need.

How much can I get? Is the typical question asked by Canadian business when financing their SR&ED claim? The answer is typically 70% now, and generally financing is structured along the lines of no principal or interest payments on the SRED loan financing until the government approves and funds the claim. At that point your firm gets the additional 30% of the claim, less financing costs associated with the claim which vary based on size of claim, overall financial situation of your firm, etc.

We want to clearly point out that no company should be deterred from financing a claim because they are in a pre- revenue state, or if they have other financial problems or challenges, as the essential security of your SR&ED itself is the prime collateral for the financing.

Talk to an expert in SR&ED financing and determine if you're a solid candidate for immediate cash flow and working capital via this great Canadian government 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

Article Source: http://EzineArticles.com/4007082



Here's a recent article published in the National Post on the important of innovation and r&d investments

TORONTO — Finance Minister Bill Morneau is calling on the country’s businesses to put more money into research and development.

In a speech to Toronto’s business community Friday, Morneau touted the benefits of R&D investment.

“The public sector needs to work together with the private sector to create the conditions for success for all,” he said. “But I’ll say here, that we need to do more. Business investment in research and development is absolutely paramount to our success and I’m calling on you, as well as business leaders across the country, to work with us as we take on this challenge.”

The speech follows the unveiling of the federal budget last month, which included billions in new stimulus spending and new funding for R&D. The latter was part of what the Liberals are calling their Innovation Agenda.

New spending on innovation will include $2 billion to expand research at universities, $800 million to develop regional clusters and $95 million annually for research grant councils.

Earlier in the week, Morneau spoke at Waterloo, Ont., a city he highlighted as a model that Canada can build on. Waterloo is known for its strong concentration of technology companies and is often compared in Canada’s media to Silicon Valley.

“We’re working with stakeholders to identify and build on regional strengths in the country,” Morneau said in his speech, part of a breakfast event put on by the Canadian Club of Toronto and the Empire of Canada..

In addition to R&D, Morneau talked about the importance of infrastructure funding. He told the audience that Toronto was eligible for a portion of the $3.4 billion in new spending on transportation. The Liberals have already said that $1.49 billion in spending will go toward Ontario’s transportation needs. SOURCE - NATIONAL POST - APRIL 2016




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