Film And Animation Project Finance - It’s A Mad Mad World Without Canadian Film Tax Credits

Finance Your Production tax credits for film, tv and animation in Canada . Here’s why!


Information on Canadian film tax credits. Utilize your film, animation and television tax credit to finance your projects successfully .




Film and Animation finance in Canada. What producer/project owner wouldn’t agree that it's a ' mad world ' when it comes to financing a project. That's exact where Canadian film tax credits enter from stage left - they play a key component in our overall financing strategy. Let's examine that a bit.

It's rarely a perfect world, but when on exists in film financing it’s a case of equity investors making a reasonable (or great?!) return on their original investment, and those mezzanine and gap type folks also achieving a solid return on principal and interest.

Does that always happen? Of course it doesnt. Sometimes things go awry or a final component to the film financing success puzzle is required. Quite often that final component consists of Canadian film tax credits, as well as those same credits that apply to the digital animation world - the newest and probably fastest rising kid on the block .

So how can the film tax credit and the financing of same become the OSCAR of film finance? We’re still waiting for the day when the film industry acknowledges an award for most creative use of a film tax credit - we do know though there are a lot of nominees out there.

When it comes to film and animation (and television) finance in Canada the tax credit is known as a ' soft dollar 'component of your financing package. Canada current has one of the most robust and easily accessible film/animation tax credits environments in the world, and is widely recognized for that.

Simply speaking anywhere from 30-50% of your overall budget can in fact be recovered by the tax credit. And the financing of those tax credits can play a starring role in your project. Why? Because they can cash flow the actual project itself, they can play a key role in the return on equity in your project, and finally, those dollars could in fact be used to help bankroll your next project. Talk about a triple whammy.

So how in fact to tax credits accomplish those key goals for the producer.? It's not as complicated as you think, they are not refundable government monies that come from the government jurisdictions that you chose to film, produce, and post produce in. When your tax credit certificate is accepted based on your budget and spend criteria that credit becomes cash for your project - and it can be monetized as you spend or at the end of the project.

So you can choose to simply wait to get your cheque from the government (it’s a combined federal and provincial amount) after your ' spend ' is verified and audited.

In the U.S. and elsewhere it’s a battlefield out there when it comes to ongoing availability of tax credit film incentives. However, in Canada there's a sense of ‘ business as usual ' normalcy when it comes to film tax credits for movies, TV, and animation projects .

Want to examine next steps ?Its all about discussing your overall financing plan and budget with a Canadian film tax financing expert in conjunction with your tax credit budget which is usually prepared by a qualified film tax credit accountant , thereby maximizing your return in any one of the Canadian provinces .

So yes, its a ' mad world ' when it comes to film finance - use your Canadian film tax credits to assist you in your overall plan of equity, debt, print and advertising, and gap financing . You just might find the Oscar goes to film tax credits for best supporting role. Speak to a trusted, credible and experienced Canadian business financing advisor when it comes to film finance.

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/canadian_film_tax_credits_finance_animation.html

Lease vs. Buy . Are You Considering The Right Things In Equipment Leasing Financing Decisions In Canada

Equipment Leasing For The Right Reasons


Information on the lease vs buy decision faced by Canadian business. Here’s help on how to make right decisions in equipment leasing financing and its alternatives .




When it comes to a lease vs. buy decision is the Canadian business owner or financial manager considering the right issues when it comes to equipment leasing financing for his or her asset needs?

There's a general sense that equipment financing is in fact the best option when it comes to acquiring assets of all types in Canada. That fact becomes even more pronounced when you business is in a constant upgrading requirement based on either useful life or perhaps technology needs. Computer and telecom assets are a great example of that.

Is your own firm’s specific requirements different than others, so it’s good to establish a set of rules and criteria that work for you?

The two main benefits around lease financing are cash flow preservation and the flexibility that comes with a lease. It's that lower cash outlay that attracts most business to equipment finance. Even if a modest down payment is required its still cash flow preservation in the long run.

We're certainly not intending this to be an accounting lesson today but the reality is that the accounting aspects of the lease require some attention and can bring you some solid advantages on your income statement and balance sheet. One of them is you ability to make lease payments tax deductible when your lease is constructed properly. This therefore, in the long run can actually reduce the total cost of the asset and its acquisition.

We've mentioned the other perceived benefit in lease finance is the cash flow savings - we'd have to say the other key benefit is the fact the leases are usually much easier to obtain. It’s a highly competitive industry, and unlike term loans from Canada’s handful of chartered banks the reality is that hundreds of lease companies all across Canada are ready to compete for your business.

Many firms that are financially challenged in areas such as a financial loss or other issues will find that equipment leasing financing option still exists for them under a lease approval.

Are there though some disadvantages to the lease vs. buy decision? The two key areas to consider are overall cost and the fact that ownership of the asset is held by the lessor for the term of the lease. Of course properly structured capital and operating leases can address both of those issues nicely, and you should input capital and operating lease calcs into your lease vs. buy decision.

In summary the key things you need to address are your financing alternatives, the aspect of debt in your company, tax implications, and the effect of the lease on your balance sheet and income statement. Other issues to keep in mind are off balance sheet financing possibility, down payments, and your ability to work with a solid lease finance partner.

At the end of the day the time you take to both analyze your lease needs, and then structure them properly will make you an overall winner. Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with the proverbial lease vs. buy decision when it comes to equipment lease financing.

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/lease_vs_buy_equipment_leasing_financing.html

The Secret Of Matching The Right Financing To Your Loan For A Franchise – Business Loans For Franchises .. Done Right

Canadian Franchise Finance

Information on matching proper financing for your loan for a franchise . Business Loans For Franchisees require specialized expertise




When looking for a loan for a franchise is it important to match the right financing to your purchase?

You bet it is! That's why some solid knowledge and tips in business loans for franchisees is definitely in order!..

Where exactly then does financing come in when it relates to the purchase of a franchise .It's critical. Because even though franchising provides you with an already proven business model its safe to say there is no real guarantee on cash flows and revenues.

And if your franchise purchase focuses on the importance of a good location there is of course no guaranteed knowledge that location will work out.

When the proper financing for a loan for a franchise is not undertaken you may find yourself in a position of not having planned for any initial operating losses to cover both operations and of course the financing cost - your monthly payment.

In some cases potential franchisees opt to in fact purchase an already existing franchise. Similar to a home purchase it’s known as a ' resale '. Here again financing is handled a bit differently, as a start up is not necessarily viewed, and financed, in the same manner as a new turnkey build operation .

Also, typically a start up turn key franchise involves leasehold improvements. These are traditionally harder to finance for any industry, even outside franchising. It's here that thousands of franchisees turn to the government business loan to facilitate the finance, via business loans, of leasehold improvement s.

Different types of financing in Canada for the franchisee require different types of personal investment. In the case of our aforementioned franchise Government Small Business Loan a minimum of 10% of permanent equity is required. We can refer to that as the owner equity or owner contribution to the business.

But a down payment in any type of franchise financing does not necessarily cover off the rest of the business loans issue, which of course relates to ongoing working capital for operations, growth, etc.

Canadian franchisees will also often difficult to finance their franchise fee, and typically we see that part of the transaction being financed by the owner as part of his, or her, overall equity contribution .

When you think of the overall financing package you need for a franchise business remember that it can be a complement of different types of financing. It could be a specialized finance loan that covers the entire purchase ; alternatively it could be a Govt BIL loan that is finalized perhaps with the assistance of some specialized lease finance structure for certain financeable assets.

The importance of planning for working capital needs is critical in the ultimate success of your business. Proper cash flow and business plan planning is critical. Often the franchisor can help you with an overview of working capital needs based on their experience within their chain.

Remember also that timing is everything in business - so don’t leave your finance planning to the last minute. It should be an integral part of your overall purchase plan.

So, as the commercial says, ‘ Don’t leave home without it ‘ referring in our case to a financial plan or roadmap that matches financing to need . If you do in fact realize the importance of matching the right financing to your purchase with respect to a loan for a franchise speak to a trusted, credible and experienced Canadian business financing advisor for assistance.






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/loan_for_franchise_financing_business_loans.html

Take Charge Of Your Business Asset Finance Today Via A Revolving ABL Credit Facility

How To End Your Business Finance Problem Now

Information on ABL Credit and business asset finance in Canada . Let this asset based credit line




We meet a lot of business owners that say they don't necessarily feel ' in charge ' when it comes to business asset finance and their ability to secure a proper revolving line of credit.

ABL credit, i.e. the asset based line of credit via a non bank facility is one way the Canadian business owner can take charge and regain control o their business financing needs .

Asset based lenders exist in a wide variety of forms in Canada... today we're focusing on the true asset based lender that provides, outside the bank environment, business lines of credit .

Where it gets a little confusing for Canadian business is that some day to day terms are intermingled to make this form of finance confusing to some. Trust us, its not confusing!

Hopefully even we can be forgiven for contributing to some of that confusion sometimes, as we have positioned ABL Credit as a non bank solution. But in reality even some of the banks participate in this type of finance via separate boutique divisions within the chartered banks. It's at that time its important to know who to deal with and why.

True asset based lines of credit revolve around one thing, the ultimate liquidation of collateral. Simply speaking the security and liquidity in the business asset finance LOC focuses on the underlying collateral that you're borrowing against. As we have noted in the past that collateral consists of receivables, inventory and equipment for the most part. (Real estate can also be added in sometimes.)

So what’s different about ABL credit when it comes to a comparison to a Canadian chartered bank? The simple explanation is that in a bank line of credit your ratios and covenants have to be performing, as set out and agreed to by the bank and yourself, with a revolving ABL facility you need to ensure those assets are operating, ie turning over, and hopefully growing.

That's probably our most significant point today, that being that your assets secured under the ABL facility must have a solid liquidation and market value. In revolving business asset finance you typically borrow 90% of A/R, and 30-70%, as negotiated for inventory and equipment.

The appeal of Asset based lines of credit is that it pertains, in Canada, to all sizes of firms. While larger facilities tend to be in the millions of dollars a financing program of this manner can be set up for a minimum of 250k if in fact your firm is smaller. But we repeat... essentially there is no upper limit.

Want to regain control and take charge of your business financing. Speak to a trusted, credible and experienced Canadian business financing advisor on how revolving business asset finance can help your firm.


















Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 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/abl_credit_business_asset_finance_revolving.html

Here’s Some Keys To Unlock Business Operating Cash Flow With Solutions That Work

What is Cash Flow And What Tools And Financing Methods Are Available To Canadian Business


Information on business operating cash flow solutions in Canada. How business owners and managers can unlock financial power in their company.



Here's to not losing your keys. We're talking about the keys to unlocking business operating cash flow and the solutions that come with that Canadian business financing challenge.

We're big

fans of confusion, because hopefully it enhances our reputation of providing clarity around issues such as business cash flow! That term is often confusing to many business owners, and financial managers.

The reality is that you will ultimately be judged by others, i.e. suppliers, bankers, lenders, lawyers, and other professionals as to how well you manage and understand that business concept.

That cash flow plan is really one of the most important documents in your business. Where confusion reigns is that it is often inter mingled with profits, income and revenue, which really are all pure accounting terms.

As we have pointed out in the past, cash does not, we repeat, does NOT equal profits, The short example is that your firm probably has a payroll this week, but in fact has not collected monies owing to you for sales you have made previously, perhaps a month or so ago. And, as we have pointed out, although you have recognized that revenue you in fact have not been paid. The short comment... it's pretty simple - You dont pay bills with revenue, just cash!

When the busines owner demonstrates he has true control over his business he enhances his or her reputation with a lender, whether that is a banker, a commercial finance company, a lessor, etc.

So what keys can you use to dig deep and unlock the cash flow power within your firm? One way is to maximize management of accounts payable. Properly and effectively managing that time lag between your receipt of goods and services to payment enhances operating cash flow, increasing it. Naturally you don't want to abuse supplier credit.

Managing fixed assets properly is another key to unlocking cash flow. Watch your fixed assets to sales ratio, and you might even consider a sale leaseback on unencumbered assets.

A huge cash trap for which you need a great key is inventory. Monitor inventory performance and the amount of product you carry.

Lastly, and perhaps most importantly, the key to unlocking cash flow power is in your receivables. Have a solid credit policy and ensure your A/R is financed properly, either through a bank or commercial receivable finance company. That latter strategy can turn your company into a real cash flow machine if managed properly.

Keep in mind that you're the one in control of those keys to unlocking business operating cash flow. Financing solutions are also available to enhance those ' keys ' - speak to a trusted, credible and experienced Canadian business financing advisor about those solutions that might work for your firm .




Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 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/business_operating_cash_flow_solutions.html

Is There A Hole In Your Leasing Finance Sidewalk ? Get A Canadian Lease Finance Company

Winning With A Proven Equipment Finance Strategy

Information on maximizing leasing finance for Canadian companies who want to ensure they are working with the right lease finance company and receiving key financial benefits not understood by all .



A hole in your leasing finance sidewalk? It's an interesting play on words around a current popular book making the rounds. We thought it was a neat analogy for Canadian business owners who want to make the most out of a lease finance company strategy... but instead keep making the same mistakes when it comes to being successful in equipment financing.

In essence their equipment lease strategy becomes a hole in their business, and managing what might seem like a complex process leads to that ' hole in the sidewalk '.

So how does one fix that hole? It's simply by focusing on taking control of your lease strategies and maximizing all the benefits around the financing of the assets in your business. It's kind of about working smarter, not harder.

We of course can forgive the average Canadian business owner and financial manager for thinking that anything to do with a lease finance company might seem complex. Naturally we all cant be experts in every field, and we met hundreds of firms over the years who utilize a lease finance company for asset acquisition but constantly either make the same mistakes or don’t consider issues they need to think about .

Probably the best advice we give to clients when it comes to the entire process of equipment finance is that they should try and view the whole process as a journey.

What does that journey involve? Well it becomes a situation wherein you have to pick the right partner firm evaluate the right type of lease for your needs, and then work through credit approval, documentation and final funding.

And just when you think its over, guess what, it isn't. That's because one of the greatest ' holes in the sidewalk ' for Canadian business owners utilizing equipment finance is the whole issue of end of term, i.e. the bank end of your lease transaction.

What then does the Canadian lessee need to consider? He or she clearly wishes they could eliminate some of those financial ' holes '.

To do that you need to either understand yourself, or bring in an expert on who are the real players in the Canadian marketplace. Leasing assets in Canada is clearly firing on all cylinders these days, and knowing who do deal with is critical.

You also want to understand how lessors make their money. Of course there is the implied interest rate in your transaction but issues such as down payment, residual values, etc play a key role in your overall financial success on the transaction.

Is leasing always the best choice? It might not be, especially in certain key areas such as a sale leaseback transaction, where a term loan might make more sense for a variety of reasons.

Wasn't there a Beatles song on SGT PEPPER called ' FIXING A HOLE '? Consider doing that, financially speaking, and seek and speak to a trusted, credible and experienced Canadian business financing advisor who can help you meet leasing finance needs in Canada.





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/leasing_finance_lease_finance_company.html

Don’t Read This If You Don’t Want The Real Deal On Receivable Finance in Canada . Business Invoice To Cash Financing

Canadian Receivable Finance Information

Information on receivable finance in Canada . Why and When does business invoice to cash financing work?





Receivable finance in Canada. It's also known as the business invoice to cash strategy. Who wouldn’t want the real deal on what’s happening in A/R financing in Canada... how it works, who to deal with, what to watch out for, etc..

Maybe it’s just us, but there is a certain discomfort we notice with Canadian business owners and financial managers around their ability to feel 100% comfortable with their overall cash flow financing strategy. And when it comes to receivable finance can the average Canadian business owner or financial manager actually say they understand the benefits, costs, and potential disadvantages of a business invoice to cash strategy? Not really in our opinion.

The time to properly consider such a strategy is when your business is still in under control when it comes to the overall working capital strategy. When you don't feel in control you tend to have a total discomfort around acquiring new assets, making on time payments to suppliers and lessors, or worrying about how you will manage growth.

Cost tends to always be the main discussion point when the conversation gets around to A/R financing with clients. The issue is simply that in many cases the business owner is not comparing on an apples to apples basis.

Why is that then? Simply because the business person, makes his or her total decision, incorrectly on the ' discounting fee ' that is implied in the cost of A/R finance.

Oh and by the way, if you are dealing with the wrong company in Canada you can get blind sided by numerous miscellaneous charges that really add up, they include service fees, an admin fee, a renewal fee, a utilization fee, and, believe it or not, many of these firms require that you have to pay them to leave! Talk about the importance of dealing with the right firm!

When considering A/R finance strategy it is good though to compare it to the alternatives when it comes to benefits. Unlike a bank facility, which many firms can’t qualify for anyway the business invoice to cash strategy has virtually an unlimited cap. As most business people know banks in Canada have, of course, pre set limits on bank facilities we can comfortably say that you are only constrained by your ability to make sales when you consider A/R financing, which isn’t the worst problem to have. You have, in effect closed the gap when it comes to cash flow flexibility.

Our recommended facility is the confidential invoice financing one, its here you get to bill and collect your own A/R, while at the same time achieving all the other benefits.

Confused about who do deal with, how it works. One way to achieve the real deal on what’s happening in Canadian business financing is to seek out and speak to a trusted, credible and experienced Canadian business financing advisor... today.







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/receivable_finance_business_invoice_to_cash.html