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 sr ed funding. Show all posts
Showing posts with label sr ed funding. Show all posts

Tuesday, December 6, 2016

SRED Loan At The Speed Of Light? SR ED Funding Via A R&D Capital Tax Credit Loan Speeds Up Cash Flow : Avoid The SR&ED Waiting Game









SR&ED FUNDING - 5 Key SRED Loan Basics For Cash Flow Success!



OVERVIEW – Information on SR&ED Loans in Canada. A tax credit r&d capital recovery loan is a great way to monetize your refundable tax credit and enhance and accelerate cash flow on your research investments














A SR ED funding loan has been a key advantage of business owners & financial mgrs. who take advantage of Canada's SR&ED program. The prompt receipt of your R&D capital tax credit is quite often a key part of your overall cash flow strategy. While it’s not quite the ‘speed of light ‘
it’s still quicker than almost all other loans in business. We're covering off some key SR&ED financing basics - let's dig in.

The program is by far the best program in Canada that incorporates a non repayable grant for your firms R& D work. Many clients hear about ' government grants and loans ' and ultimately realize these are not as available as one would think - however SRED is everything you hoped for... and more.

The true power of the SR&ED PROGRAM comes when you accelerate your claim and turn it into immediate cash. Most of our clients, as sophisticated as they might be in their sred filings actually also haven't heard that in certain cases your sred can be considered for financing. In fact the majority of claims are prepared by third parties called ' SR&ED Consultants ' who in many cases focus only on claim prep not claim financing.

Even more important is that claims can also be finance PRIOR to filing - That whole process is called SR&ED accrual financing.

What then are your ' must knows' when it comes to SR ED funding?


1.
SRED is highly specialized - seek and work with a trusted, credible an experienced consultant to prepare your claim, as well as a credible business financing advisor to fund your claim immediately.

2.
The only thing you need to know about financing a claim is that you must have a claim! It is a simple business financing application with supporting back up on your Sr&Ed - your actual refund is the key collateral in the claim.

3.
SRED's are financed at 70% of your total claim value

4. You can finance a claim as soon as it is filed; starting earlier simply accelerates the process. And remember, you can opt to finance prior to filing under accrual filing. It kind of like a SR ED line of credit.

5. We refer to a SRED ' loan ' - the reality is that no additional debt is added to your balance sheet, because the loan is offset by the asset, the claim itself! You are simply monetizing, or ' cash flowing ' your claim.

As you can see by now the whole process of a SR&ED Finance is simply the financing or' factoring 'of your claim. You are selling your right in the receivable now in lieu of cash that you will receive from the government many months from now, in some cases close to a year.

A quick recap /primer?


5 key basics.
As we noted Sr&Ed funding is specialized. Work with an expert for two reasons - maximizing the value and finance rate on your transaction, as well as ensuring the whole process goes smoothly. You should not view the sred loan process any differently than you would any other financing, you apply, you provide supporting back up, and you receive your funds after the normal sort of due diligence. The collateral, if we can call it that, is the SR&ED claim itself.

With respect to # 2 simply focus on the fact that you should consider financing the claim if it will generate a reasonable amount of working capital and cash flow that you need today. To be honest most claims that are financed are in the 100k ++ range, but smaller claims can be effectively financed

Point #3 had us referring to loan to value - you can expect to receive an immediate advance on approx 70% of your claim - that the combo of the federal and provincial component. The balance is a holdback - it’s still your money, but final financing costs, plus any adjustments the government makes to your claim are accounted for in that 30% buffer that is held back by the lender.

"When can be obtaining our funds "is really the meaning of our 4th point. The entire process takes approx 2-3 weeks as it covers your application, review of your sred, normal financial due diligence, and the clarification of any issues raised by your firm or the sred finance firm . And the good news here is that again the term ' sred funding loan' is a misnomer, you don't make any payments, and finance charges simply accrue and are deducted from the final accounting of the claim. That covers our 5th point of course.

Bottom line - if you're a user of the SR&ED program consider a sred funding to solve that challenge of cash flow/working capital tied up in your R&D capital investments.



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.



Saturday, January 1, 2011

How Much Will Sred Tax Credit Financing Cost You and why Sr ed Funding Makes Sense

Does a sred tax credit financing make sense for your firm, and whats the cost of sr&Ed funding in Canada? Well, we'd like to show you some solid reasons to consider a sr&ed loan - we'll let you make that decision , our role is to inform – yours is to decide!


If you are filing sred tax credit claims in Canada you also have the option to finance those claims, when completed, or in some cases, in advance! More about that advance scenario later.

Not every Canadian business owner and financial manager knows they can finance a sred claim - we meet with clients all the time who are surprised their tax credit can actually be financed and monetized into real cash flow, immediately. Naturally we are even more surprised when we run into firms that don’t even know about the program , or , more astonishingly, consider it ' troublesome' to file for a non repayable tax credit . Are we missing something, or is that akin to saying ' no thanks' to some free money.

If you do an internet search on the term ' government grants and loans ' you will see that there are thousands of inquiries around that term. In our humble opinion the two best ' government ' related programs in Canadian business financing are the Scientific Research and Experimental Development program, aka SRED! The other program is the government guaranteed subsidized Loan program, commonly known as the BIL program. More about that one on another day.

Filing your sred claim with the assistance of a firm or accountant or industry specialist is a large part of maximizing your claim. They know the positioning and guidelines around a proper submission, and its all about that fine line of maximizing your claim but ensuring it meets all the criteria. In the last year or so the government has actually streamlined the whole process around submissions, and the jury is still out as to whether Canadian business owners filing for sred tax credits consider this a good or bad thing.

Anyway, sred tax credit financing is available if you have a claim. And we are not talking via the bank, which generally doesn’t consider this a finance vehicle, but rather independent finance firms and Canadian business financing advisors who specialize in sr&Ed funding.

Clients are always very focused on their questions - we can close our eyes and rhyme them off - ' how much does it cost' ' whats involved' and ' how much can I get '.

Claims are generally financed at 70% of the value and the balance is simply held back as a buffer. The whole process can be completed in a week or two with your firm’s co operation, sr&Ed funding is structured very uniquely. You receive funding and don’t make any payments on this financing; it’s a kind of bridge loan. The financing charges are in the 2% per month range - sometimes less, and sometimes more and you can use the funds for any general corporate purpose. With a good track record your claim can be financed during the year as you spend funds , so it is kind of an accrual scenario .

Does sr&Ed funding makes sense? It does it you can use the cash from your non repayable grant to grow your business, increase profits, continue the battle against the competition, and increase your firms cash flow and working capital. The opportunity cost of not doing anything with your claim might just be too great!

Speak to a trusted, credible and experienced Canadian business financing advisor around tax credit financing that might just make great sense for your firm.

-


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 6 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

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