Business Financing: Maximizing Cash Flow Via Alternative Loans & Tax Credits

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Business Financing: Maximizing Cash Flow Via Alternative Loans & Tax Credits

The Hidden Gems Of Canadian Business Financing

Business Financing Loans And Financing Tax Credits For Cash Flow

Business financing success in Canada might well come from finding some of what we call the ' hidden gems ' of loans and other financing options. Even the govt via tax credits under the SR&ED program or gov't guaranteed loans might well become your best friend when it comes to business finance success. Let's dig in.

 

TWO GOVERNMENT SPONSORED BUSINESS FINANCE PROGRAMS YOU NEED TO KNOW ABOUT

Two of Canada’s government-sponsored business finance assistance programs are the farthest thing from handouts you can imagine. Canada's SR ED Tax Credit program for R&D is a solid tool for recovering your R&D capital via refundable tax credit financing.In many cases anywhere from 30-40% of your entire research budget can be recaptured via a refundable tax credit for a loan amount your require.

CAN THE REFUNDABLE SR ED TAX CREDIT CLAIM BE FINANCED?

 Even better news is that this tax credit can be financed via a bridge loan while you wait for your refund to be approved and arrive. It’s no secret that many of the thousands of firms who received billions in refunds every year take advantage of SR&ED loan financing.

THE ' SBL ' GOVERNMENT LOAN PROGRAM

 One other ' hidden gem ' for start-up and early growth companies requiring SME COMMERCIAL FINANCE solutions is the govt sponsored Guaranteed Small Business Loan. It's very accessible and is geared toward financing 3 asset categories - equipment, leasehold improvements, and finally real estate. While not often used to finance real estate thousands of firms do in fact finance their fixed asset and leasehold needs via this program. One of the main ' users' of the program is entrepreneurs wishing to start or purchase a franchise business.

The Govt small business loan is NOT a handout. It's not a grant. But what it is provides a flexible term loan with great interest rates and flexible terms and amortizations. It even can be repaid without penalty - which even other traditional financing methods don’t allow.

What are the approval criteria for SR&ED loans and the Government SBL loan that we've described? In the case of the SR ED tax  program, you simply need to file your claim with your yearend financials. Claims are typically 'written up ' via SRED consultants who specialize in maximizing your claim under the program. Naturally, your R&D capital investment spend under the program must be well documented when it comes to actual expenditures and monies paid/spent.

As far as the Govt SBL loan is concerned very typical lending criteria apply. Business owners must have reasonable personal credit and be able to provide a business plan and cash flow that assumes some realistic repayment of your loan. Invoices or quotes from suppliers on leaseholds and equipment you intend to finance also helps. The interest rate on the program is very attractive and competitive and comparable to main street financing rates given the nature of the program.

ARE THERE OTHER SOURCES OF ALTERNATIVE FINANCING FOR CANADIAN BUSINESS?

Our two ' hidden gems’ , the SR&ED program and Canada Govt Guaranteed business loans can be complemented with numerous other finance solutions. Those include financing under:

ALTERNATIVE FINANCING SOLUTIONS

A/R financing
Inventory Loans
Equipment Leasing
Non bank asset based credit lines
P O financing
etc.!

Business Financing  Loans Cash Flow Tax Credits: If you're focused on understanding all the finance solutions and business credit available to your company seek out and speak to a trusted, credible and experienced Canadian business financing advisor.


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


Stan Prokop 7 Park Avenue Financial/Copyright/2020

business financing cash flow loans

The SR&ED Bridge Loan – The ‘ Hushed Truth ‘ On ( SR ED )SRED Tax Credit Financing Loans In Canada

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SR&ED ( SRED ) Finance is… Alive and Kicking!

Information on the SR&ED bridge loan in Canada. SRED Tax credit financing is a valuable way to enhance cash flow. SR&ED loans were and are available during recent program changes

The SR&ED bridge loan in Canada. Did it almost become a hushed secret at a timer when the very existence of the SRED tax credit seemed in doubt?


The real secret of SRED loans in Canada is that they were available for your tax credit prior to the current budget, and, guess what. ? .... They remain in place today for your tax credit financing strategy!


Most Canadian business owners who utilize the SR&ED program in Canada were keenly aware that the very existence of the tax credit seemed in doubt in 2012 - That concern is long since gone!!!


Well, the dust has settled and if we had to say there was a general consensus we would have to say that in general there's a status quo around the program. Many firms who felt they would do ' better' or ' worse ' under the new changes are finding that it’s a case of ' it depends ' - so it could have been a lot worse.


Thousands of Canadian businesses received Billions of dollars every year under the program, the formal name of course being Scientific Research & Experimental Development. Hence SR&ED. Your firm’s ability to demonstrate you have improved a process or processes, or come up with new technology or software qualified you for Sred.


We’re e not ( fortunately ?) accountants , we're financiers, so we'll let you talk to your SRED consultant or advisor on the various rates changes that took place, some up, some down , under the program . We would note that the biggest change seems to be the fact that capital expenditures don't qualify under the program, but salaries and materials and portions of your overhead still qualify.


We'd love to take a poll one day on how many Canadian firms know that SR&ED Tax Credit Financing exists in Canada. We'd venture to say is clearly the majority, not the minority. So if we had to reveal that ' hushed secret ' on this major Canadian tax credit incentive it's simply ' Hey, you've got an options on your SR&ED tax credit .. You can wait for months, or much longer for you refund cheq. . OR ... you can finance your claim.


If you do have a claim that's prepared by an experienced and credible SRED consultant that claim can easily be financed. The basic rules around that are as follows - The SR ED bridge loan gives you approximately 70% of the face value of your claim. No payments are made during the loan period - at final approval and payment of your claim by Ottawa and the province you receive your remaining 30%, less financing costs, a simple application and you ability to provide the SRED tax credit as collateral is all that’s required.


So is SRED dead? It looks like it isn’t. We can hear the sigh of relief among all those SR&ED consultants who provide the majority of the writes ups on claims in Canada.


And, don’t forget. SRED tax credit financing loans are here today, they were here yesterday, and they will be here tomorrow.


Speak to a trusted, credible and experienced Canadian business financing advisor on help for SR ED bridge loans for working capital and cash flow for your Canadian firm.






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

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 .

' 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

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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 $20O,OOO.OO 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.


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

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 .



' 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

Business Finance Solutions Include Government Loans & SRED Tax Credits

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Here’s 2 Government Backed Financing Strategies Your Business Might Consider Tapping !

OVERVIEW – Information on government loans and SR&ED tax credits as valuable components of any business financing strategy for early stage and start up businesses in Canada

Business finance solutions in Canada include the Canadian Small Business Government Loan as well as the SR&ED tax credit program. Should you ' tap into ' these two programs (probably about 15,000 other firms do already!) and how is that done? Let's dig in.

Although business owners and financial managers in Canada are sometimes reluctant to take on debt (or in fact anything associated with the wheels of government) the reality is that thousands of companies utilize our two aforementioned programs to tap Billions of $ of capital every year.

The govt SBL program is one of the best initiatives the Cdn government takes in ensuring a certain amount of capital is available to many predominantly younger and growing firms. By the way, this definitely includes start ups, as they and other firms in the small and medium enterprise chunk of the economy generally power Canadian economic success.

It's important to realize that only 3 asset categories are financeable under the program:

Equipment/fixed assets/technology/application software

Leasehold improvements

Real Estate

Depending on which asset category or categories you are applying for the loan can be as much as $1,000,000.00. Want some more good news? Owners are on the hook for only 10% as a personal guarantee component of the loan, the govt guarantees the balance. In case you think we're just gushing over such a great program we probably are as other strong selling point of the program include:

No prepayment penalty

Competitive rates

Terms ranging from 2-7+ years

Remember, this isn't a government ' grant ' - it's a true term loan that must be justified by a good business plan and hopefully some good mgmt and industry experience.

The government relies on Canadian banks to administer the program and your best bet is to ensure you're working with someone who understands criteria and timelines and the basics of a loan package. (Those basics are typically a business plan and cash flow that reflects the loan repayment.)

The most common Tax Credit program that again, thousands of firms take advantage of is the SR&ED program which refunds a large portion of any R&D expenses. This R&D can span many different industries, including software development, clean and green businesses, mfg, etc.

For privately owned firms the govt makes this tax credit ' refundable'. This credit can then be monetized or cash flowed as a bridge loan or cash flow advance. Many early stage firms use this cash flow loan as a main component of their overall working capital or cash flow strategy.

If you're looking to tap into 2 solid programs that deliver capital and cash to your business seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in navigating either program in a timeline that makes sense for your 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

Business Financing : Maximizing Cash Flow Via Alternative Loans & Tax Credits

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The Hidden Gems Of Canadian Business Financing

OVERVIEW – Information on business financing in Canada. Working capital and cash flow can be enhanced via use of a gov’t loan, alternative loans & SR&ED tax credits – Here’s how and why

Business financing success in Canada might well come from finding some of what we call the ' hidden gems ' of loans and other financing options. Even the govt via tax credits under the SR&ED program or gov't guaranteed loans might well become your best friend when it comes to business finance success. Let's dig in.

Two of Canada’s government sponsored business finance assistance programs are the farthest thing from handouts you can imagine. Canada's SR&ED program for R&D is a solid tool for recovering your R&D capital. In many cases anywhere from 30-40% of your entire research budget can be recaptured via a refundable tax credit.

Even better news is that this tax credit can be financed via a bridge loan while you wait for your refund to be approved and arrive. It’s no secret that many of the thousands of firms who received billions in refunds every year take advantage of SR&ED loan financing.

One other ' hidden gem ' for start up and early growth companies requiring SME COMMERCIAL FINANCE solutions is the govt sponsored Guaranteed Small Business Loan. It's very accessible and is geared toward financing 3 asset categories - equipment, leasehold improvements, and finally real estate. While not often used to finance real estate thousands of firms do in fact finance their fixed asset and leasehold needs via this program. One of the main ' users' of the program is entrepreneurs wishing to start or purchase a franchise business.

The Govt small business loan is NOT a handout. It's not a grant. But what it is provides a flexible term loan with great interest rates and flexible terms and amortizations. It even can be repaid without penalty - which even other traditional financing methods don’t allow.

What are the approval criteria for SR&ED loans and the Government SBL loan that we've described? In the case of the SR ED program you simply need to file your claim with your yearend financials. Claims are typically 'written up ' via SRED consultants who specialize in maximizing your claim under the program. Naturally your R&D capital investment spend under the program must be well documented when it comes to actual expenditures and monies paid/spent.

As far as the Govt SBL loan is concerned very typical lending criteria apply. Business owners must have reasonable personal credit and be able to provide a business plan and cash flow that assumes some realistic repayment of your loan. Invoices or quotes from suppliers on leaseholds and equipment you intend to finance also helps.

Our two ' hidden gems’ , the SR&ED program and Canada Govt Guaranteed business loans can be complimented with numerous other finance solutions. Those include financing under:

A/R financing

Inventory Loans

Equipment Leasing

Non bank asset based credit lines

P O financing

etc.!

If you're focused on understanding all the finance solutions available to your company seek out and speak to a trusted, credible and experienced Canadian business financing advisor.


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

Financing The SRED Credit And Film Animation Tax Credits In Canada

The Surprising Overlap Of Film and SR&ED Research Tax Credits – They’re Both Financeable





OVERVIEW – Information on financing the SRED ( SR&ED) Research Credit as well as film animation tax credits . These two refundable tax credits can be cash flowed for company / project financing

Film and animation tax credits in Canada, along with the SR&ED research credit have an interesting overlap. That overlap is... FINANCING.

Let's dig in.

Yes, there is no business like the tax credit business (as the song goes?!) And when it comes to financing these two programs there are some remarkable similarities... and benefits.

A tax credit in Canada can come in many forms .- they are essentially ' incentives ' that allow public policy in certain industries ( in our case ' research ' and ' film ' ) to provide a benefit that might otherwise not exist . And when those credits are' refundable ' in the form of real dollars the benefits truly kick in.

Let's first take a look at the SRED (‘SR&ED’) program. In place now for over 60 years in some form, it provides encouragement to business of any size to conduct research for business benefits. In Canada billions of dollars each year are sent to firms who participate in the program, and that reflects business of all sizes, including start ups by the way. Claimants in this program are approaching 20,000 firms annually by the way.

The spirit of the program is of course to allow firms such as yours to take products and services globally, enhancing Canada's reputation along the way. The major areas of expense recovery under your claim include labor, contractors, and overheads directly attributable to the R&D you are carrying on. Computer programming is often a large part of many claims and has helped make many software firms successful.

While a small number of firms choose to prepare their claim themselves the majority of the work done in Canada in SR&ED prep is done by SRED CONSULTANTS. It's their job to sort through areas of experiments, research, and to determine what’s eligible and what’s not, including summarizing that activity.

The area of ' FILM '

which includes movies, documentaries, television, and the hot new area of digital animation is the other large beneficiary of a tax credit. These credits attract producers and owners to Canada, and the credit has proven to create jobs and tax revenue, as well as an overall ' stimulus ' to Canada's reputation and economy.

When it comes to the financing puzzle of putting together a film project well over 35% of any project can be fully financed via film and animation tax credits.

When we talked about refundable ' SR&ED ' credits we covered the role of the SRED Consultant. When it comes to the film industry that role is shared by a ' Tax credit Accountant '. They maximize the percentage available to your project... allowing producers and owners to ensure maximum benefit is being taken into account under the program.

The programs, by the way, are a combo of federal and provincial incentives. Knowing what amounts are available from what province under which program is key!

We spoke of the ' overlap ' of these two seemingly different programs. But whether its the ' white coat' scientist in the lab or the movie producer shooting in the field or the digital engineer working on an animation project the bottom line is that refundable tax credits in each program are financeable !

Even more similarity exists in how the credits are financed, which are typically 75% loan to value, and being structured as a bridge loan with no payments. Financing can also potentially occur before the tax credit certificate and your financials have been filed.

If you're looking to monetize a ' SRED ' claim or a film , TV or transmedia digital tax credit seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you in monetizing your claim for maximum benefit .




Stan Prokop - 7 Park Avenue Financial :

http://www.7parkavenuefinancial.com

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

7 PARK AVENUE FINANCIAL = CANADIAN TAX CREDIT FINANCING EXPERTISE




Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:

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

Direct Line = 416 319 5769

Office = 905 829 2653



Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing With The Intelligent Use Of Experience '

Stan Prokop

Film Finance Companies : Are You In The Loop On Financing Films Via Tax Credits & Other Strategies

A ( Pretty Well ) Complete Guide To Film Financing In Canada For Independent Films

OVERVIEW – Information on financing films in Canada . Tax Credits and other loan strategies via film finance companies will help ensure success in your Media strategy






Financing films in Canada can only be described as ... challenging! For some producers and owners it surely must seem like a life long journey in efforts to finance projects. A search will even reveal that numerous films and documentaries exist about the actual financing of a movie! Let's dig in.

Film finance companies in Canada exist but are surely not in abundance. So whether it’s the tax credits that assist to finance projects or the other elements of a full financing package its critical to get some basics under your belt.

The good news in Canada is simply that there are numerous incentives, primarily under a tax credit regime that that assist you in completing a full financing. The tax credit itself is always a key part of the ' puzzle “.

In any aspect of business outside expertise and experience always helps, and that’s an understatement when it comes to film. You want to be able to know how to access various programs, how they work, and to ensure you qualify for maximum financing.

The actual tax credit itself is typically a combination of a federal and provincial amount. To us the phrase ‘Don’t try this by yourself at home '

comes to mind when it comes to tax credits. While it is possible to file your own application and claim your best bet is always to get the assistance of a film tax credit account ant - like many areas of accounting expertise these folks ' maximize ' your claim and ensure you are qualifying for maximum allowable claims . By the way, it's not unusual for these credits alone to help finance up to 1/2 of your entire project, if not more sometimes.

It all starts with an application for a tax credit ‘certificate’. The formal name of the main credit is the ' Film Production Services Tax Credit ‘. It is combined with the provincial part of the claim which is simply driven by the province you choose to produce your project in. Many projects these days are ' Transmedia ' driven and involve digitization, special effects, etc. A separate credit is available for that part of any project.

Not everyone is aware that many ' Canadian ' projects in film, TV and media are in fact only ' partly ' Canadian - they are often ' co -productions ' which is simply an arrangement that Canadian tax authorities have with many countries to assist in the same type of financing . Again specific rules apply. In truth an actual ' point ' system exists and is a key part of the tax credit claim... i.e. maximizing points!

As an example one of the most recent co production approval agreements involves India... so of course ' Hollywood North '

can also be called ' Bollywood North'!

If you're wondering what drives tax credit eligibility in Canada for film the key areas of focus are production ownership, production costs, geographical location, etc.

FINANCING TAX CREDITS : Your applicable tax credits can easily be financed to ensure maximum cash flow . Loans are typically for 70% of the value of your claim and provide solid cash flow for your existing or next project .

While we have focused mainly on tax credits for the obvious reason, film finance companies also assist with the other parts of the project financing puzzle - they include areas such as pre sale financing, gap financing, and minimum guarantee financing.

If you're looking to get ‘ in the loop ‘ for a better ' fast track' on financing films, TV and digital projects seek out and speak to a trusted, credible and experience Canadian business financing advisor who can assist you with part or all of your project needs.




Stan Prokop - 7 Park Avenue Financial :

http://www.7parkavenuefinancial.com

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


7 PARK AVENUE FINANCIAL = CANADIAN FILM TAX CREDIT FINANCING EXPERTISE




Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?

CONTACT:

7 Park Avenue Financial

South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Office = 905 829 2653



Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing With The Intelligent Use Of Experience
























Stan Prokop

Government Loans And Financing Tax Credits In Canada For SRED And Film Tax Programs

Spoiler Alert ! You Just Might Be A Corporate Welfare Bum .

Here’s How ? Or Did We Mean Why ?


Information on government loans and tax credits in Canada




Government Loans in Canada . And dare we say it: OMG! There it was, right in front of our eyes - an article in Canada's leading business daily newspaper suggesting that clients that we help daily are corporate welfare bums. Talking about how to hurt us! Let's clarify! So let's dig in.

A recent white paper by one of Canada's most respected THINK TANKS suggested that there is a major increase in ' Corporate Welfare ' One department in particular, ' Industry Canada ' has ' doled out' over 22 Billion dollars since the 1960's. A lot by any imagination since all those zeros add up to some real money once in awhile.

We never weigh in on the political stuff, although deep down we do find something wrong about the 5.5 Billions dollars given as non repayable loans to 3 of Canada's major corporations named in the article. The guilty will remain UN - named in our musings here.

So what’s our beef with all this ?It's simply that the financings we originate on behalf of clients around the
SBL loan program , Canada's non repayable film tax credits , as well as our revered SR&ED program seem in our eyes ultra legitimate program which promote business, the economy, employment, taxes, etc.

Take Government SBL loans in Canada. While every year somewhere between 7000-8000 companies, clients like ours , take advantage of the program they do that because they are looking for basic business financing that meets needs for ongoing needs for equipment, leasehold improvements, computers, software, real estate, franchise purchases, etc .

And the reality is that they utilize the Small business loan program via our efforts simply because it’s a competitive loan at decent rates and structures that could not be achieved otherwise via our Canadian chartered banks. The basics of the program are as follows:

Available for start ups or established businesses with revenues under 5 Million dollars

5-7 Year terms

Rates at 3% over prime

Nominal personal guarantees

Repayable without penalty

We again point out this is a loan program, it's not a grant.

As far as SR&ED and film tax credits go these are Canadian tax credit programs that create non repayable funding for research and projects in the film and animation industry. Most believe these programs provide an effective means of furthering Canada's position in industry and, in the case of film, entertainment and the Transmedia industry.

Financing for SR&ED provides valuable working capital and cash flow for assets that otherwise couldn’t be monetized via Canadian banks in the traditional manner.

So, final point? We’re quite sure that somewhere out there that there is some real corporate welfare types. But for our clients Govt SBL loans and tax credit financing for film and SR&ED is a legitimate way to grow businesses and further revenues and profits for the Canadian economy.

Looking for legitimate govt loan program financing for Equipment, leaseholds, film and animation tax credits, etc? Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can help you monetize these programs for cash flow and working capital 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 :

7 PARK AVENUE FINANCIAL = GOVT LOANS AND TAX CREDIT FINANCING EXPERTISE



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











The Original Globe & Mail article referred to : "Industry Canada has doled out $22.1B in corporate welfare since 1961: report " By Columnist Andy Radia













Stan Prokop

How To Borrow Against Sred Claims- Use Your sr ed (SR&ED ) tax credits & Finance For Cash Flow Today!

In the world of finance more often than not today is better than tomorrow, and when it comes to borrowing against your sred claims your ability to monetize sr ed tax credits for working capital is the ultimate win win situation . Here is why!

The Canadian governments Scientific Research and Experimental Development (aka ‘sred’, 'sr&ed') program provides in the area of 4 Billion dollars per annum to Canadian businesses in the form of a non repayable tax credit cheque. The only reason you wouldn’t get your cheque is if you had corporate tax arrears, and that’s still a good thing we think, because at lease then the government offsets your tax arrears with your credit. (By the way, we don’t recommend tax arrears as a financing strategy!)

Your company is using the program for all the right reasons, i.e. improving products and services, staying competitive, etc. But many firms either haven’t heard of or lose sight of the fact that the sred tax credits can be even more 'accessible ' if you will, when you borrow or finance your claim.

Turning your sr&Ed tax credits into valuable cash flow and working capital moves you one step ahead of your competitors we have always maintained to clients. Why. It's simply the old finance adage that a dollar today is worth more than a dollar tomorrow, as it can be re invested in your operations for a variety of reasons.

A typical question we get from clients considering the financing of a sred claim is ' what are we allowed to use the funds for?’. And of coruse they love the answer, which is simply for any general company purpose you choose - typically that becomes reduction of working capital, clearing up or lowering payables, and just general day to day operations.

Financing your sred claims in essence ' invigorates your working capital.

So who finances these claims and how would be describe the process. Is it complicated; easy, how long does it take? Those are the typical client questions in consideration of sred finance.

We can make a broad pretty safe statement that banks in Canada don’t finance sr&Ed claims for your tax credits. If they do, it is in conjunction with other security and arrangements you have with your bank. Most firms we talk to either have approached their bank, been declined, or simply have not been aware that sr Ed credits can be financeable.

We recommend you speak to a trusted, experienced and credible Canadian business financing advisor who is knowledgably in the area of sred tax credit finance. That will shorten your process, maximize the amount you can receive under you claim, and in almost all cases simply reduce the time and effort you might normally expend to investigate sred financing.

The reality is that a sred finance expert can usually originate a full financing of your claim in a manner of a couple weeks, allowing for simple basics such as an application, review of your actual sred technical filing, etc.

So, can you borrow against sred claims? The answer is of course yes. Should you? That’s your decision, but if you need cash flow and working capital today from a non repayable government tax credit that you certainly know what to do now!

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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 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

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

How To Raise Money For Film Financing via Ontario and BC film grants and Tax Credits

Can your film financing (television and animation also by the way) via Ontario and BC film grants and tax credits be the final piece of your project financing puzzle. We'll let you decide but we can’t imagine you not entertaining any financing, that is non repayable, that might cover 30 -45% of your entire project budget.

In order to achieve financing success you need expert help and information on how the tax credit and film financing area works in Canada. Two of the most common regions for film, production, and therefore tax credits are Ontario and BC ( British Columbia ) , but not everyone is aware that pretty well every Canadian province, in conjunction with Revenue Canada ( for you Americans that’s our version of the IRS !) has a robust film tax credit program.

Only when you master the techniques and processes around film financing and the use of the generous tax credits will your project be properly financed - That’s of course unless you're a major studio, but that’s not the clients we're addressing here.

We should note also that once you develop a process, and have a proper team around that typically an entertainment accountant, a lawyer, and a production accountant) then you can pursue and replicate the same process of funding your projects via Ontario and BC film grants and tax credits for all future projects.

The film tax credits in effect ' bridge the gap ' between your vision of the project, its potential financial success, and your ability to fund and complete the project.

Film tax credits and film financing happens of course everywhere in the world. Where Canada excels is the fact that you have generally uniform process for the entire country and the program is well funded and generally very efficiently administered. It's one of the few times in our business careers where the line ' I'm from the government and here to help ‘makes actual sense!

Lets use Ontario as a quick example of how to raise the tax credit financing you need. The Ontario program is so efficient these days that the applications for financing are actually done online via the government body that administers and approves the tax credit certificates. However, before you get to that stage, as we noted earlier, you need to be in a position to have a proper budget in place that will reflect what the eligible spend is on the items that are being funded by the tax credit.

As a quick rule of thumb you can generally expect your budget to return approximately 35% of your labour expenditures for a production filmed or produced here in Ontario. The reality is that if you film outside of the Greater Toronto Area formulas are in place that further enhances the credits by an additional 10 per cent.

The additional great news we share with clients is that your tax credits are financeable. That dramatically changes a good deal into a great deal because you can receive loan financing on the tax credit either during production as you spend, or when completed and you have your final certificates in place . Naturally for your film tax credit to be financed you need to have a proper legal entity in place (commonly known as special purpose vehicles - SPV) and your tax returns and filings must be up to date.

Raising money for film financing involves 3 components, equity, debt and mezzanine, and tax credit financing. Let Ontario and BC film grants and tax credits be the final piece of your financing puzzle for your project in film, TV, and animation. Speak to a trusted, credible and experience Canadian business financing advisor in the film tax credit area to ensure you maximize this great finance strategy for your project.

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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 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.parkavenuefinancial.com/film_financing_ontario_bc_film_grants_tax_credits.html

Are There Canadian film financing banks For My Tax Credits?

It’s happening! Your project in film, animation, or television is moving forward - you've got shooting locations, principal photography details lined up, cast set, crew in place... but wait... someone forgot to take care of the film financing though!

Canadian film financing is certainly does not have dissimilar challenges from any other film geography in the world - its all about a great or interesting script, a solid cast, and , oh yes , funding and being cost efficient .

The reality is that your film project (again, we are always talking also about t v and animation in the same breath) has to be run like a business - because that’s what it is. In fact the reality is that 99.9% of all production is in fact set up as SPV's (special purpose vehicles) that reflect the financial success of just that one project.

So you project is funded just like any other company, with debt and equity , and has all the usual challenges around financing, payroll, accounting, meeting budgets, etc.

We always smile when we hear the phrase - ' I'm from the government and I am here to help’. But, guess what, in the case of the Canadian film, TV and televison industry you can make the case the generosity and clarity around the government tax credits for the industry are second to none, in the world, actually.

Your project owners, whoever they might be, want to know that you are fully financed. In Canada, using a broad brush example of 30 - 40% that money can come from our friend in the government, typically a combined federal and provincial formula, depending in which province you choose to shoot, post produce, etc.

When we talk to owners and producers of productions, either those having taken place, or in planning, it’s clear the road is a long hard one, it’s never easy! That’s why we encourage clients in Canadian film financing to monetize their tax credits and ensure they have the proper advice around structuring their budgets and what qualifies.

Many are surprised to hear that your productions can be financed on an accrual base. That is to say by working with film financing banks and private finance firms you can ' cash flow ' your project as you are in production. Again, the government is offering to help you with cash flow, and your film financing bank or private independent finance firm will cash flow those non repayable tax credits. It’s clearly a win win.

We’ve always felt that the tax credits in Canada for production services credits benefit independent producers, although we are assured major studios utilize them also. So as an owner or executive producer who is challenged with film financing you're automatically 1/3 of the way there in finding your equity and debt backers, by virtue of tax credit monetization.

As a producer or owner of a production you want to ensure the project is financed properly and responsibly - talk to a trusted, credible and experienced Canadian film tax credit consultant to ensure you're cash flowing your project to your maximum benefit.

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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/canadian_film_financing_banks_tax_credits.html