SRED Tax Credit Financing : Making The Case For SR ED Loans & Recovery Of Your R&D Capital Investment

SR&ED Tax Credit Financing - 2 Things You Must Know

OVERVIEW – Information on Sred tax credit financing in Canada. Utilizing SR ED bridge loans is a cash flow effective way of speeding up recovery of your r&d capital investment

SRED Tax credit financing, even just the concept of SR ED loans to monetize your R&D capital investment can be a confusing scenario for Canadian businesses who take advantage of the most popular of Govt refund credits. So we're officially forgiving those who don't know the basics - and we'll fix that with some solid tips and info. Let's dig in.

Looking for a breath of fresh air in the SR&ED world? When it comes to financing and monetizing your claim 2 simple facts remain and we'll simplify that as follows:

1. If you have a sred claim it’s financeable for cash and working capital now

2.To finance a claim you need to have filed a claim, but not always!!


Your ability to monetize or cash flow a claim is in fact a superior way of generating additional working capital and cash flow now based on the value of your filing. We will add one technical point here, in that claims are generally financed at 70% LTV. LTV means ' loan to value ‘, so we are simply saying that for every one hundred thousand dollars of sred claim filing you can generate seventy thousand dollars via a short term sred bridge loan .

We can expand on that point a bit to ensure you are well informed. After filing a claim it is clear you are in a ‘waiting mode ' for your claim to be analyzed, potentially audited, and then of course waiting for the proverbial government cheque - shall we say ' it's in the mail ‘!

With Ottawa backing your non repayable cheque you of course have the assurance funds will come, but you just don't know when!

We recommend that if you have filed a claim that you investigate the ability to finance that claim now.

Why wouldn't you consider a financing option to accelerate cash flow and start using those funds now?

Uses of funds under SR&ED financing are totally within your control. We see clients utilize SR&ED loans to further invest in even more R&D, i.e. next years claim! or you can choose to reduce payables, invest in additional equipment or business assets, etc.

In a small handful of cases we meet with firms who have a tax liability to Ottawa or the province re source deductions, HST, etc. If you work with a trusted, credible, and experienced Sr&Ed finance advisor you can structure your financing to ensure that you're past due remittances are taken care of during the sred financing process. No firm wants to be in the governments bad books re past due government super priority issues.

The actual SR&ED financing process should be treated by yourself as any other business financing - we try and actually make the case its easier in some cases, because the actual asset behind the sred loan is the sred claim itself, so even if you think your firm might not qualify for financing for other forms of traditional borrowing your probably qualify for the sred - why?? Because you have a sred claim as an asset that's verifiable!


Given that billions of dollars are refunded under the SR&ED refundable tax credit you want to ensure you're getting your share - no argument about that. SR&ED loans simply speed up that process. Yes you can wait for funds, which may take a couple months or the better part of a year - if you can’t wait consider financing your Sr&Ed claim via a short term sred loan which is collateralized against your filing.

We strongly recommend you have a professional filing prepared, by your accountant or sred consultant (there are many) - this will significantly positively impact your ability to finance your claim.

Looking for a great cash flow and working capital strategy around that R&D capital investment - Monetize your tax credit. No new debt is on your balance sheet, as it is offset by your sred asset that is in fact a monetizable account receivable. Seek out and speak to a trusted credible and experienced Canadian business financing advisor who can assist you with your claim financing.



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 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

SRED Tax Credit Loans & The Govt Business Loan In Canada

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Which Of These Two Govt Programs Provides Great Business Financing Possibilities ? Answer : Both Of Them

OVERVIEW – Information on the financing benefits of the Govt Business Loan and bridge finance via SRED Tax Credit Loans

Govt business loan funding in Canada as well as the ability to access SRED tax credit loans are two excellent ways to help fund your company. While many clients we speak to are looking for the proverbial ' grant ' the concept of ' free money ' isn't really available- instead the alternatives we have mentioned are great ways to raise capital/cash flow. Let's dig in.

For companies seeking SME COMMERCIAL FINANCE solutions these programs stand head and shoulders above - they fund over 12 Billion dollars each year when we take into account both programs.

While many may consider anything to do with govt as ' overwhelming ' the reality is that both programs are straight forward. For the Govt Small Business Loan, aka the ' SBL ' it's available to all new or established firms with revenues under five Million dollars. We note also that the program does not apply to publicly listed companies.

How can you qualify for the program, and, more importantly, do you qualify? Customers need to review the classes of assets that can be financed. The true power of the program is that the rates are only 3% over prime, currently in the 5% range. Terms of repayment are 5-10 years, and, are you ready; a full personal guarantee of payment is not required!

How do firms such as yours, or your competitors! use this type of loan financing .Typically these programs are used by companies to acquire assets, improve their business, purchase or develop software, and even in some cases buy real estate.

We note that even business real estate can be financed, with limited guarantees and great rates and terms.

If business principals feel they are adequately prepared to source out this programs financing power we strongly recommend that they begin this process. However, not everyone has the time, financial skills or acumen, and the ability or comfort level to complete this financing.

Those people should seek out the aid of a trusted advisor and business financing expert in order to maximize their participation in the program.

Still looking for that ' free money '? Does it exist? Again, not really. But would you like to receive a check from the government for any processes, research or innovation that your firm has developed? If so you want to maximize your participation in the governments SR ED tax credit program.

Looking for a faster option for your SR ED claim? Once your firm or your SR&ED consultant has filed and prepared the claim your refund can be financed, generating immediate cash flow via a bridge loan. Claims that are financed are structured as bridge loans - no monthly payments are made for the period of the loan, and typical loan to values are 70% of your claim.

If you're looking to explore the finance possibilities around the Cdn govt small business loan or SR&ED tax credit financing seek out and speak to a trusted credible and experienced Canadian business financing advisor who can assist you with cash flow & capital solutions that make sense.


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 Financing In Canada : Taking Advantage Of Tax Credit Finance Via SR ED Bridge Loans

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Canada’s SR&ED Program : Get it While You Still Can! By the Way Did We Mention SR&ED Credits are Financeable for Cash Flow Now?

OVERVIEW – Information on SR&ED loans in Canada. SRED Financing offers cash flow bridge loans on your firms r&d capital investment. Tax credit finance is a solid cash flow solution to recovering valuable working capital outlays

SR&ED credits help replenish the investment thousands of Canadian firms make with R&D capital. The refundable tax credit in this sometimes misunderstood program is also financeable, accelerating and replenishing cash flow.

But the program (The Scientific Research & Experimental Development Program) is under attack. Looking for proof? The Aug 9/206 Globe &Mail story is a good example. The article (‘Gargantuan Tax Credit Doesn't Pass The Test For Evidence Based Policy) offered up 3 essential reasons the program does not work.

1. Canada's R&D capital investment is weak and declining
2. No evidence that the majority of firms are benefitting from spillover imagined benefits
3. The program is driven by bureaucracy not growth and innovation imagined benefits

The bottom line?

We'll let the pros debate the program and may the best man or woman win. We'll continue to originate and offer financing under the program

SRED financing in Canada is somewhat of an under used working capital and cash flow financing solution in Canada. Let’s explore the key basics of what SR&ED is and how Canadian firms can maximize the benefit of the program. SR&ED Bridge Loans turn that government non repayable tax credit into cash flow sooner than you had anticipated.

Most Canadian small and medium large businesses finance their day to day working capital via bank credit lines or non bank alternative financing facilities, such as asset based lending, factoring and receivable discounting. If your firm has such facilities in place, for example with a Canadian chartered bank then you are receiving probably 75% of your receivables and perhaps 50% of your inventory as eligible financing.

Did you know that your SR ED can also be in this working capital category? Let’s cover off how that is, and how it can work to your cash flow advantage! Unfortunately it's probably uniform across the board that SR ED credits aren't financed by Canadian banks. So alternative financing solutions have taken up the slack.

The basic strategy around SR & ED financing is the securing of a separate financing facility outside of your current financing arrangement. Therefore you are in essence creating a separate short term financing facility around the SR & ED claim that you have just filed.

In normal circumstances companies that file SR ED claims particularly on a first time basis can wait well close to a year to receive their funds from the federal and provincial governments. Remember the great benefit of these funds, which is they are not repayable . How long will the government commit to this solid, proven program? We're not sure but over 3.5 Billion dollars is shelled out annually to firms just like yours.

So what have we found discovered so far? SR &ED claims a great way to recoup a large per cent age of all the funds you have invested in research and development and experimentation during the past year. In fact you can claim up to 2 years of work.

The Canadian SR ED program is Canadian government’s way of assisting firms who are moving forward with innovative products and services. To be eligible to file a claim your firm must be a private Canadian owned company , have prepared and filed a proper SR ED claim in conjunction with your annual tax filing . We would point out that if your company has arrears with Canada Revenue Agency these arrears will be set off against monies due to yourself under the claim.

Also, if cash flow and working capital are at the top of your importance list your claim can be financed with the assistance of an experienced and credible SR &ED financier. This is truly a boutique industry in Canada and business owners and financial managers are urged to seek out trusted and credible advisors in this niche financing area.

Under the concept of SR ED financing your SR ED is security for a working capital loan – funds are advanced to approximate 70% of your filed claim. If properly structured you would not make any payments under this cash flow infusion, and would repay the principal amount of the SR ED financing when your claim is authorized and approved. In effect you’re are factoring or discounting the SR ED claim.

In summary, Canadian firms eligible to file a SR ED should do so. Get it while it lasts! What firm would not want to receive a cash non repayable grant from our friends in Ottawa! If you can wait for the money, great, if you wish to arrange interim financing for your claim enlists the services of a trusted and credible SR ED financier. In a matter of a couple of weeks (why wait a year?) your working capital and cash flow will be augmented via your SR ED financing bridge loan. That’s a good thing, and a great Canadian alternative financing strategy.

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your cash flow and working capital 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

Canadian Film Tax Credit Financing : Refundable Tax Credits Finance Solutions

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Push Buttom Film Tv & Animation Loans For Refundable Tax Credits

Information on Canadian film tax credit financing . Refundable tax credits finance solutions are a key part of your overall strategy to successfully complete projects in movies , television and animation/transmedia. Welcome to HOLLYWOOD North finance

Canadian film tax credit financing . Clearly there is no secret path to financing a film, TV or animation project anywhere... Canada included... Ontario... BC... where ever. But one sure fire method of successfully completing a project is in fact your ability to monetize the tax credit.


Refundable tax credit programs in Canada revolve around 2 solid offerings from the Canadian government . In addition to film/tv/animation and transmedia tax credits there is also the SR&ED program which is a refund on research and development by privately owned Canadian companies. While we're focusing here on ' film ' it's important for entreprenuers, owners and financial managers to know that billions of dollars are also available under the SR ED program annually,


With respect from some of the sagas' and stories we hear the financing of projects in any of the above mentioned genres they could well qualify for a script of their own!


Producers and owners of successful projects already know that there are some key elements to the financing of any project. In a way they are not dissimilar to the financing of any business...your owner equity. Debt of some form, and in our case also, the monetization of a tax credit.


Financing of entertainment projects in our 3 genres could not be any ' hotter ‘than in the current Canadian timeframe of 2016 .


If properly structured and qualified your Canadian film tax credit financing in provinces such as Ontario, BC (British Columbia) and Quebec and cover anywhere from 30-50 per cent of your entire project budget. When revenue, distribution, pre-sales and other targets are a challenge the tax credit, when properly submitted and eligible becomes pretty well the more straightforward method of financing projects.


Tax credits are often referred to as ' soft dollars'. The one thing we've always found interesting about tax credit finance is that they don't really rely on the overall success of the project from a public acceptance point of view. When applying for and financing the film/TV/animation tax credit it’s very simply about meeting the technical criteria of the credit program itself.


It's therefore all about ' the spend' and the quality of the spend. And once you've qualified you then are in a position to monetize the tax credit - it becomes the collateral for extra cash flow. While in most cases that cash flow and working capital helps you on the current project it could of course be used for your next (hopefully successful!) production.


Tax credits are typically financed at a ' discount ' and a general norm might be in the 70% range - of course this varies per quality of the project and the experience and stability of the ownership team.


For successful eligibility and financing of Canadian film tax credit financing you require the services of a qualified tax credit accountant; that being a bit of a niche area of accounting. And with respect to the financing you need to be able to demonstrate that the credit can properly be assigned and that there are clear chains of title around your project.


Do you have to finance your film, TV and animation / transmedia tax credits? Absolutely, positively not. You can simply use the non repayable funds for any general corporate purpose. But if you, as a producer are challenged by successful project financing then the ONTARIO, BC AND QUEBEC tax credits can be a solid part of your overall financing plan. Those three provinces dominate the Canadian landscape when it comes to film tax credits . The more common nickname - Hollywood North!


Speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success today on how you can successfully obtain.. and if you choose monetize and cash flow film refundable tax credits.



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

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