Tax Credit Financing And SRED Finance In Canada :Thinking Differently Via A SR ED Loan

Alarm Clock Ringing OnYour SR&ED Claim? It’s Time To Cash Flow It

OVERVIEW – Information on tax credit financing in Canada. A SR&ED loan has Canadian firms thinking differently on their r&d capital investment. SRED finance works by maximizing the cash flow timing around your claim . Here is how and why

SRED Financing in Canada is all about using tax credit financing for the right reasons. Maximizing Canada's r&d program via a SR ED loan is all about reaping the final benefit of the program - ' Cash ' Let's dig in .

It's important to view financing your SR&ED credit as an option that's your choice as a business owner/financial manager. It's simply one more way to assist in both the R&D portion of your business as well as your general financial health. Simply speaking, being eligible for the program makes you eligible for the financing.

Refundable SR&ED credits are of course for privately owner companies in Canada. They, along with their counterpart, film tax credits are administered by CRA - Canada Revenue Agency.

Financing your SRED claim is all about cash flowing your refund - many businesses that utilize the program are at various stages of what we can call their ' life cycle '. In fact many firms that choose to monetize their claim are in start up or very early stages of development. It's at these times that cash flow and working capital are most important.

What then are the typical uses of cash when financing your R&D claim? Typically they include:

Funding additional research - many companies have an ongoing R&D program annually

Utilizing the funding to move their R&D into new markets - aka Revenues!

General working capital needs - payroll, supplier commitments

Financing growth via new orders/contracts, etc

Some clients we meet often speak of the additional time commitment required to prepare the claim. Naturally a lot of that time commitment can be eliminated by both having documentation in place, and even more importantly ' tying your horse '

to the right SR&ED consultant - it's these folks that prepare the claims for this industry. Naturally a good consultant will maximize your claim.

Utilizing the right consultant adds legitimacy to your claim - and categorically speeds up the process both in writing your claim and ensuring it moves through the govt processes at 'warp speed ' .

Businesses will appreciate that not all govt programs move at warp speed!!







By the way, if you're looking for proof of the benefits of the program you need only understand that thousands of firms just like yours (including your competitors) reap almost 3 Billion dollars a year in refunds.

A SR ED loan is all about needing, and getting your money now. It's your chance to beat the ' waiting game ' as refunds can take anywhere from 3-12 months depending on the complexity, size and filing time of your refund claim. In fact the entire finance process, when you're working with the right firm can take only a couple weeks to receive funding.

SRED Finance typically monetizes 70% of your total claim. For example a 200k claim will net you 140k in loan proceeds. Really the simply way to look at it is to view the SR ED claim as an account receivable of your business - and you're simply borrowing against that asset . By the way the financing costs of a SR&ED loan are built into one final balloon payment at the end of the loan - this is a bridge loan with no monthly payments.

If you're looking to ' think differently ' on your SR&ED refund and want to consider the benefits of financing that claim today seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with your cash flow needs.



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 . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN SR&ED TAX CREDIT FINANCING EXPERTISE



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

Tax Credit Financing In Canada : Investigating SRED Finance Loans

The Art Of Making Waiting Go Away Via SR&ED Tax Credit Financing In Canada

OVERVIEW – Information on tax credit financing in Canada for the SR&ED program . SRED finance loans maximize and cash flow the benefits of a SR ED claim – here is why and how

Tax credit financing in Canada SRED finance loans is all about making ' waiting' go away. There's really only one reason to finance a SR&ED tax credit, and that’s to utilize the cash today that you ordinarily would wait much longer for.

Let's dig in.

There is a basic structure around the whole SR&ED credit process, and the majority of that evolves into the basics of financing your claim. It goes without saying that new claimants (many companies file successful refundable tax credits under the SRED program every year) want to ensure they are eligible to file.

There's a time and cost investment to file a claim that maximizes your refund, so eligibility is key. Recently the govt instituted a ' pre claim ' process allowing businesses to get a comfortable sense they qualify. By the way, top experts tell us that only about 1/3 of claims eligible are in fact filed! Information technology projects are a huge part of SRED - a lot of software development is funded under the program - and therefore financeable.

The vast majority of companies engage ' SR&ED Consultants ' to prepare claims, which are then filed in conjunction with your corporate tax return. ( By the way , although most firms tend to finance their ' refundable credits' after they file them recent trends in financing innovation and creativity allow you to fund your claim prior to filing - or , at the opposite end of the spectrum - you can start to fund next years claim .. today!

When it comes to preparation of the claims that's where the expertise of the consultant you utilize helps to maximize the total refund - based on formulas under the program for allowable expenses of applicable salaries, contractor fees, materials, use of your premises, etc. Naturally the larger claim = more financing available!

Going ' solo ' in business is never a good feeling as it sometimes denotes risk - but the reality of tax credit financing is that you're in good company with the 20,000 or so firms that file r&d expenses annually - receiving close to 4 Billion dollars or more in cash refunds . As we said, you should only finance your refund if you require business funds - and who doesn't?

Remember also that many businesses filing SR&ED claims are start ups or early stage revenue firms - you still get a cash refund if you arent generating profits in your business.

When it comes to the financing of a SR&ED credit the documentation couldn’t be more simple - a copy of the claim, info on who prepared it , some basic data on your firm, and any recent financial statements, forecasts, etc .

Claims are typically financed at 70% loan to value and the uniqueness of financing a refundable tax credit allows the transaction to be structured as a ' bridge loan ' with no payments. The transaction is closed off when the govt confirms and funds the claim, therefore closing out the loan. Bottom line - you only pay to finance funds for a short period of time.

If you're interested in specializing in the ' art of making waiting go away' consider seeking out and speaking to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with investigating SRED finance loans.





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 :


http://www.7parkavenuefinancial.com/sred-finance-loans-tax-credit-financing.html


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



Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing With The Intelligent Use Of Experience '

Stan Prokop

Sred Program Claims : Become Master Of Your Domain When It Comes To Tax Credit Financing

Financing Your R&D Claim In Canada – The Why – The How !

OVERVIEW – Information on financing SRED ( SR&ED) program claims in Canada. SR&ED tax credit financing makes more sense than you think!






Financing Sred Program claims in Canada is big business. Why should the business owner/ financial manager consider tax credit financing under Canada's SR&ED program? Let's dig in.

Several billion dollars of Canadian govt funds are given each year to the several thousand firms in Canada that participate in innovation and technology via their funded research.

Numerous misconceptions exist around the program - issues such as ' who is eligible ' ... 'are start ups eligible ' ... 'does a company have to be profitable to claim SRED ', etc. By the way, even if your firm is unincorporated you could still apply for SRED funding! ; Although the majority of claims submitted and that are financed tend to be for legal Canadian entities.

The reality is that even companies that are in the pre-revenue, or in the early stages of gaining sales traction can still apply, and no, you don't have to be profitable yet. And the amount to be claimed? It varies by province because it’s a combo of federal and provincial monies, but as a broad rule typical SR&ED claims amount to approx. 40% of your total spend in R & D innovation and process improvements.

The key to achieving SRED approval is of course a ' quality ' claim.

Many first time claimants we talk to sometimes struggle with preparation of their claim. Here's where the word ' expert' truly has meaning , as SR&ED claims are, more often than not, prepared by external consultants ( 'SR&ED Consultants/Engineers ' ) who have experience and expertise ( hopefully!?) in your industry.

In the last couple years a ' crackdown' of sorts has occurred around these consultants, with questions being raised about the fees they charge, which are often on a contingency basis ., and the aggressiveness of claims that are filed . Since we're addressing SRED tax credit financing you can assume that who prepares your claim and the quality of that claim is one of several important factors that play a role in financing.

Companies claiming SR&ED credits typically, and correctly so, view their filed claim as a ‘Receivable’. Naturally it's a government receivable, the one issue being of course that until your claim is audited and approved it's not 100% clear that it will is 100% approved! So many firms book that receivable, some book a more conservative amount, and then the ' waiting game' begins!

The financing of your SR & ED claim alleviates of course the ' waiting' for the financial and technical audits that come from the program. We'll never fully understand why, but banks are more than reluctant to finance these claims, and when they do so, as we have pointed out in the past, it’s in the context of their entire relationship with your firm, including external collateral they hold.

Enter SR and Ed financing. The finance process around your claim is very straight forward, a simple business application and accompanying data is all you need to get started. Innovation exists even in financing! , so claimants will be surprised to know that recent trends in SR&ED bridge loan financing allow firms to receive financing prior to their claim being filed, which was not always the case.

So yes, you can wait 3, 4, 6, even 12 months sometimes to receive your SR and ED claim funding chq, but if your firm requires or can use the additional working capital and cash flow now seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
with tax credit financing for SRED Program claims expertise.




Stan Prokop - 7 Park Avenue Financial :

http://www.7parkavenuefinancial.com

Business financing for Canadian companies , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded in 2004 - Completed in excess of 90 Million $$ of financing for Canadian corporations .

Info re: Canadian business financing & contact details :

7 Park Avenue Financial = Canadian SR&ED Tax Credit Finance 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


Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing with the intelligent use of experience '

Stan Prokop

The SR ED Bridge Loan . Missing Out On A Key Benefit Of Your Tax Credit Claim ? It’s The Financing

Stop Dumbing Down On The SR&ED Bridge Loan Process And Benefits

OVERVIEW – Information on the SR&ED bridge loan in Canada. Tax credit financing of your SR ED claim provides valuable cash flow financing

for your research achievements








The SR&ED Bridge Loan allows Canadian business owners and financial managers to achieve... immediately... the one key benefit of their tax credit claim under the govt's ' SRED ' ( Scientific Research And Experimental Development) program . That benefit? The Cash! Let's dig in.


We suppose our favourite saying this week is ' Dumbing Down ‘...all sorts of connotations, but essentially its evidence of ' lacking intelligence' and ' good judgement’ we’re told. But armed with some basic yet key info around SRED Financing there is certainly no need in our opinion do ' dumb down’ when it comes to financing your tax credit.

Getting back to basics, we are quite sure there is still a large contingent of Canadian business that does not know that financing to claimants under the program is even available. It is, and the cash flow and working capital you secure via your collateralized claim allows you to continue your R&D under the program and replace valuable cash resources that have been spent on that whole process.

The key benefit of financing a SR&ED credit is simply beating the time factor. While the processing of your claim can take months, sometimes much longer (first time claimants are often audited) your ability to cash flow your claim is really what it's all about in SR&ED financing.

Historically the entire program has been around for close to 30 years now in various forms. In the 1990's popularity exploded, with Billions of dollars issued every year under the program. Top experts agree that it’s the largest ' support' program for private companies, partnerships, and even sole individuals who are working on new products, processes, etc to stay competitive and grow their business.

It's interesting to note that in the 2011 time frame the entire program came under massive review... was streamlined to a certain degree, and brought the role of the SRED consultant front and center. It's this group that typically business owners turn to prepare claims.

Govt stats show that over 75% of all tax credit claims under the program are in fact in the SME sector. That is where cash flow is king, so financing your claim emerges as a solid benefit.

And the process? Claims are typically financed in the 70% LTV range (loan to value)... meaning that a 200k claim , as an example provides a 140-150k range financing . Having your claim prepared and by a knowledgeable consultant is a solid key factor in financing approval.

The true beauty of tax credit financing under the program is that no payments are made for the duration of the financing... hence the term ' BRIDGE LOAN '. When the government processes your claim you are advances the remaining 30% of the tax credit, less financing costs.

99.9% of tax credits financed under the program are done by non bank entities... and rates are typically mezzanine in nature. It all comes back to the ability to achieve instant cash flow under the financing of the credit.

By the way .. Innovation has crept into SR&ED financing , and most claims can even be financed while the research and expenses are still in process. It’s a concept known as ' Accrual financing’ of our tax credit.

So if you're utilizing the program (your competitors probably are) there's no need to ' dumb down' when it comes to financing your claim. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor with a track record of tax credit finance success. Accelerating your claim is what it's all about.




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 = SR&ED Bridge Loan Financing Expertise In Canada


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

Email = sprokop@7parkavenuefinancial.com

Stan Prokop

Tax Credit Financing In Canada . Authenticated SR&ED ( SRED ) And Film Credit Finance

Lights Camera Action Cut! What? You Can Finance Canadian SR&ED & Film Tax Credits? !





Tax credit financing in Canada. Whether its SRED (SR&ED) credits or film, animation or television credits the financing of these generous credits in Canada provides valuable working capital and cash flow financing for companies or projects. We're focusing on the most financeable types of tax credits - ' FILM ' and ' SRED". Let's dig in.

Let’s first take a look at the R&D (sred) credit program as it pertains to financing. While no business owner or financial manager would disagree that an investment in research is important to competitive growth in any company they're the first to agree that it can be an expensive and cash consuming investment in your firm’s future.

And while Canadian business financing of any type is a challenge, spending money on R&D simply accentuates that challenge. And since your firm’s research is rarely capitalized on your balance sheet (and if it is your lenders discount the asset!) obtaining financing for your SRED claims simply makes total sense!

Financing your SR&ED claims could not be simpler. And the good news that we continue to share with clients is that more innovative products are coming on board all the time - including what we could term SRED LINES OF CREDIT, also sometimes called Accrual Sred Finance.

Let's briefly examine the simple mechanics of financing your SR&ED tax credit. After your claim is prepared (typically by your own firm or a SRED ' Consultant’) it is filed along with your corporate tax return. The minute that happens it is immediately eligible for financing. Typically banks in Canada do not finance these credits directly, although they might for a well heeled firm that has a strong bank relationship in place.

Non bank SRED FINANCING works as follows - your claim is financed to a maximum of 70% loan to value. Simply speaking on a 200k claim you are eligible for 140k of immediate funding. The financing of your tax credit is best described as a bridge loan - no payments are made for the duration of the claim, and when it’s approved by the government you obtain the balance of the funds, less financing costs that accrued during the loan period. Simple as that.

As we noted, more innovative sred credit lines, or sred accrual finance allow you to receive funding as you spend prior to your final filing of your claim . Talk about ongoing working capital and cash flow that all of a sudden make that investment in research much more palatable to your firm.

Remember also that financing tax credits in Canada is a solid alternative to additional equity or taking on more debt.

We're thinking that your Canadian business doesnt make a lot of movies, TV shows, or animation projects? However, if you're a producer or owner of projects in the media and entertainment industry tax credit financing is of course for yourself. It’s our 2nd major category of tax credits financed, in addition to those SRED credits.

In Canada, aka ' HOLLYWOOD NORTH ‘, there's intense competition among the provinces to finance film, animation and TV tax credits. Although it’s a highly specialized form of tax credit it only takes a legitimate project, a good tax credit accountant (they prepare and itemize your claim) and you're able to access the same level of funding we've already spoken of, in a similar manner.

Provinces such as British Columbia, Ontario and Quebec garner most of the tax credit action, and although there are some differences in amounts qualifying suffice to say that these media credits are very generous, and very financeable. Canada as a country recognizes that providing these credits generates billions in income and significant employment in the industry.

Foreign producers, primarily U.S. based, can also access these credits for productions done in Canada as long as they qualify under a simply point system for what is known as co-ventures. Points accrue for having a Canadian producer, how much you spend, etc.

Our bottom line? Pretty obvious. Financing tax credits makes sense and helps cash flow companies and projects. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your tax credit finance needs.




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 :

http://www.7parkavenuefinancial.com/tax-credit-financing-film-sred-credits.html





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

OMG ! Tax Credit Financing Is Alive And Well For SRED And Film And Animation Video Incentive Credits In Canada. Yes You Can!

Is That Weird Or What – You Can Finance Tax Credits In Canada?!


OVERVIEW – Information on tax credit financing in Canada . Sred ( SR&ED) film, tv and video animation credits can all be financed / monetized for cash flow and working capital .



You're forgiven. Simple as that. For what ? For not knowing that tax credits can be financed in Canada ; and we're talking about two specific ones, the SRED ( aka SR&ED) non refundable tax incentive, as well as film , TV and animation FX credits .

Tax credit financing is simple relatively unheard of unless you're familiar with the industry , or even better, have a need for cash flow and working capital for your company or specific project .

Some have called it a lucky break, whatever you choose to call it monetizing tax credits in Canada can help you access capital needed.

As we said we're focusing on two key types of tax credits - one related broadly to the film and TV industry, and the other related to Canadian research and tax credits.

Let's focus on the former first. The Canadian government, on a combined federal and provincial level spends hundreds of millions on what they term as incentives for the film, TV and animation industry. As the borders broaden for these genres some refer to them as ' transmedia'.

While it's no secret that government budget cutbacks are pretty well everywhere these days to the surprise of most the film / television production tax credits remain strongly in place. In Canada these credits are a combined credit at both the federal and provincial levels. Generally speaking all provinces have a program in place; the reality is that British Columbia, Ontario and Quebec seem to have the brunt of the action when it comes to actual content filming, production, etc.

From the governments perspective Canada reaps economic benefit from the industry, i.e. employment, taxation, cultural attributes, etc. And if you're an American production shooting or producing in Canada you are still eligible for the tax credits, as well as the financing. At the end of the day we can simply say that the larger the production the larger the tax credit and available cash flow if you choose the financing route.

While the rules for qualifying for and calculating tax credits might be considered complex by some (not if you have a good tax credit accountant) the actual financing of these claims is a lot simpler. Being able to provide both a realistic budget , as well as domiciling your project in a special purpose entity , as well as being able to validate your actual spend via payrolls, purchases, etc is key to the financing of your claims.

Financing of film, TV and animation credits (animation credits seem to be the fasted growing part of the industry) is typically done on a ' bridge loan' type basis. Approximately 70% of your claim is advanced to your project, based on the tax credit, once you have filed. The balance is paid to your firm on receipt of your federal and provincial funds, less the financing costs which vary depending on size of claim, quality of your project / mgmt team, etc.

Let's move on to our second type of tax credit financing we're covering today, that's the SRED program.

Again, billions have been committed to the program, and despite some radical updates to the program we can safely reiterate that your SR&ED tax credits can be financed also. Claims are financed in relatively the same manner, it 70% loan to value, and no payments are made during the course of the ' bridge loan '. The most interesting part of SR&ED financing is that some newer finance innovations are in place - including the ability to finance next years claim before you have filed. And in some cases an actual business line of credit can be set up allowing you to draw funds for your spend . That's creativity!

And the requirements for a SRED financing? It's not rocket science, unlike some of the actual research itself. You need to demonstrate you can produce business financials, your claim should be prepared by a qualified SRED consultant, and you need to be in a position to allow the claim to be collateralized if in fact some other financing party to your company is claiming security on the SRED. That’s usually achieved by a simple postponement of claim in favor of your SRED finance firm.

So our bottom line today - whether you're part of Hollywood North, or in the lab or on the shop floor you have access to a very powerful tax credit financing that is both creative , flexible, and provides capital for your company or project .

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your SRED or film/tv/video tax credit financing needs .

7 PARK AVENUE FINANCIAL
CANADIAN TAX CREDIT FINANCING EXPERTISE


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 :


http://www.7parkavenuefinancial.com/tax-credit-financing-sred-film-video-credits-tv.html














Stan Prokop

Financing Your SR ED Tax Credit in Canada

Not everyone Canadian business owner or financial manager takes advantage of the Canadian Governments SR & ED (Scientific Research & Experimental Development) tax credit program. It’s clearly in our opinion of the best and truly legitimate and valuable programs that a government provides for its business entrepreneurs in Canada.

7 PARK AVENUE FINANCIAL
CANADIAN SR ED FINANCE


Many, when they hear of the program for the first, are amazed that they can receive significant funds, that are non – repayable (yes that’s non -repayable!) for their ongoing investment in research, product development, business processes, etc.

And, those that do take advantage of the program dutifully wait many months, in some cases a year or so or more for their cheques from the provincial and federal government.

Why not borrow against these funds and utilize those funds for much needed working capital and cash flow to further fuel the growth of your firm.

SR & ED financing is still relatively unknown in Canada – it is clearly a very specialized type of financing, somewhat ’boutique’ let us say, in nature.

The government, via the program, wants to provide funds to Canadian business so they can continue to further their research and development and provide Canadian firms with a lead in technology and business.

So lets get back to the financing of the SR ED, aka ‘ SHRED ‘, aka ‘SR &ED’. SR ED Loans are typically for approximately 70% of your combined federal and provincial claim. The claim can be financed as soon as you have formally filed the claim with the government, which is at the same time you do your year end tax filing.

SR ED applications can be filed for the last two years, so on occasion your firm might in fact have a significant receivable generated by virtue of that filing you have done. Our observation is that some companies actually book that receivable in their financial statements for the full amount of the claim. Some companies take the conservative approach and only record the cash coming in when it is received from the government.

So, you as a business owner or financial manager of a Canadian company are asking yourself the obviously – if I book the SR ED as an account receivable, will my bank provide financing for it. Our experience is generally ‘no ‘they will not. Canadian chartered banks, being somewhat more conservative in nature, recognize the SR ED claim may or may not be approved. So if there is any risk in your financial structure as viewed by the bank they will not advance funds.

The private sector of Canadian finance is in fact doing the SR ED financing. Claims are financed on the basis of your firms overall financial status, although we add that even pre revenue companies or companies that are losing money can still obtain SR ED financing.

Every Canadian firm that files a SR ED claim should consider financing the claim if they feel the additional cash flow and working capital will assist their company in continued growth and success. Talk to an expert and use this alternative financing as a great way to boost cash flow.




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/Contact_Us.html

Using Film Tax Incentives For Television, Animation and Film Finance in Canada

Most of the players here in Canada as well as in the U.S. seem to agree that the film, television and digital animation business has bounced back nicely in Canada. Film tax incentives in film finance (we’re of course talking about television and animation projects also) continue to play a strategic role in the challenge of cobbling together a full and successful finance package for projects.

The financing of your project seems the opposite of the glamour and dare we say it ' sexiness ' of the film and TV industry. The challenge clearly is to maximize financing while minimizing risk to investors and owners and Canadian tax credit incentives do just that. When these tax c credits are financed, or ' monetized ' they in fact supercharge the working capital and cash flow of your production.

Many parts of a project financing have what the financial analysts call ' unpredictable revenue streams ' via foreign sales, DVD sales, and of coruse the box office itself.

Why not therefore make some of those ' unpredictable' future cash flows very predictable with money from federal and provincial governments in Canada. As you are certified and approved for your projects your ability to finance the credits in the private sector simply enhances your productions chance of overall success.

Financing your tax credits in Canada essentially has you putting together a hybrid of equity, debt and tax credit financing which, done properly, allow your project to success from a financial perspective. (We won’t get into the entertainment or public acceptance merit of your projects!)

Whether you are a car manufacturer or a film producer, director, owner it’s all about ROI, return on investment. Leveraging your project from a tax credit incentive simply enhances ROI.

Canadian entertainment projects in film, TV and digital animation are very much ' blossoming ‘.
Even though the Canadian dollar has grown stronger the enhanced credits that have come into place in the last year or so simply are driving U.S. and foreign productions into Canada. Even Bollywood is looking at Canada!

Maybe Canada is a little boring and conservative when it comes to many other countries but being a stable country with a diverse filming geography and strong financial system offsets that Canadian ' boring ' personna quite well!

Single productions cannot apply for both the domestic film/tv credit and the production services tax credit - you are required to choose one or the other assuming you qualify. In many cases applications are being streamlined and even filed online in Canada.

Speak to a trusted, credible and experience film fax advisor to maximize the financing of your tax credits - they should no doubt enhance project success.

--------

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 45 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details:
http://www.7parkavenuefinancial.com/film_tax_incentives_film_finance_tax_credit.html