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

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


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

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

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

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

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

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

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

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

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

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

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

Worried About Getting A Loan For A Franchise ? - Here's your 2011 Franchise Financing Guideline!

We know you'd rather start the New Year off with a positive attitude about your new role as entrepreneur - let’s demonstrate how you get a loan for a franchise and how franchise financing works in Canada.

Buying a franchise is clearly one of the bigger decisions you'll make in your personal and business life, and you want to be able to do that with specialized information and assistance to help you succeed.

We would never say there are a large number of ways to finance a franchise in Canada , but there are some tried, tested, proven and recommended methods and strategies and we'll show you how they work!

You never want to feel you have been pushed or misguided when you are thinking of getting a franchise financing loan. That's where professional info is always the best solution.

We're the first to agree that the attractiveness of buying a franchise is a powerful concept - you're literally buying a proven formula and it’s no secret that you have a better chance of surviving if you purchase a franchise as opposed to starting your own independent business that has no track record.

So when you decide to finance that franchise the ' legwork’... if we can call it that, is important. Your goals are threefold actually, you want to be able to successfully purchase the franchise, ensure you have some capital to operate it, and finally, growth is important to your overall success, so you want access to growth capital for your business if you need it.

The majority of franchises are cash flow based, i.e. the restaurant industry, so operating capital and growth capital are not as important in those scenarios. But if you are purchasing a business that has receivables, inventory, and equipment needs, well... be aware that those items need working capital financing.

Franchise financing has three parties to it, yourself as the borrower, the franchisor itself, and of course the finance firm or bank. Generally most franchisors in Canada will determine if you are a qualified candidate for them - that includes a combo of business and or industry experience, as well as some sort of qualified financial credit check on yourself that determines you have the wherewithal to successfully purchase a business.

You only need two things to finance a franchise and get a loan for a franchise. Simple, right. Well those two things tend to be the 2 items that our clients worry about - they are Debt, and Equity. Equity is of course the amount of funds that you personally will put into the business - debt is what you'll borrow of course.

In Canada the current environment calls for a 30-50% range owner equity infusion... this number in our opinion seems to have crept up over the years. The debt or loan for franchise acquisition comes from predominantly the government. The government!! clients ask? Yes, because the majority of franchises financing in Canada are done under a special loan program called the BIL/CSBF loan program. To qualify you need a business plan, and miscellaneous info required to support your application.

This loan eliminates a huge part of the risk in getting a franchise, because your personal guarantee is limited, thanks to our friends in Ottawa who sponsor the program. Also, and we think this is great; the loan finances things like leasehold improvements, which typically would be impossible to get elsewhere.

Speak to a trusted, credible, and experienced Canadian business financing advisor who will assist you to complete franchise financing successfully. Getting a loan for franchise finance is not as hard as you think, if you have an expert on your side in 2011.
--

Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 6 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :


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

Asset Based Lending Canada - Why An ABL Working Capital Loan is Your 2011 Finance Solution

Optimistic as us? We would bet a nickel that you're a lot more optimistic about business growth and prospects heading into 2011 - Could it have gotten any more challenging over the last two years? Doubtful !

So how asset could based lending Canada and a working capital loan facility give you all the business financing optimism you might have lost over the last couple years.

Simply for the reason that, when properly utilized and structured an asset based line of credit, aka an ' ABL ' is in our opinion your best bet for a one stop shopping solution for all your cash flow needs.

That’s a pretty powerful statement, so let’s examine what an ABL solution is, how it works, and more importantly, why you should potentially consider it for your business financing and working capital solutions.

Simply speaking asset based lending is a cure all for firms that are highly leveraged, have had some challenges in financial performance, and at the same time have an asset base to move forward on and grow the business .

The term asset based line of credit is in no way misleading - it’s simply a line of credit that finances your assets (receivables, inventory, and potentially equipment and real estate) on a revolving basis. To put it in better context think bank line of credit without the rations, covenants, additional collateral, emphasis on personal guarantees and personal net worth, etc.

An ABL working capital loan or revolving facility simply gives you the tool to grow your business, and that tool is cash. No longer will you have to worry about negotiating seasonal or one time bulge needs in your finance needs, and you could even consider an ABL facility as a solution to acquire a competitor.

In many cases the asset based lending Canada solution that you need is a stop gap against two key challenges, the ability to grow your business when you don’t have enough owner equity and are potentially over leveraged.

Naturally the alternative solution to a working capital facility such as this is for the owners of the company to put in more equity and long term working capital. That typically has a lot of challenges to it, and if you talk to anyone seasoned in business finance you'll quickly learn that giving up equity is a lot more expensive than monetizing your assets, which is what a working capital loan facility does when you consider the ABL solution .

So how does the facility work - it is a non bank solution with an independent firm, and provides you with 90% receivable financing, and inventory borrowing that’s based on the actual value of your inventory, not some pre determine cap or limit that many banks impose. (That’s because banks generally don’t have the ability to understand your inventory values - ABL lenders do!).

Asset based lending, in our experience is a bit more costly than traditional banking, but the upside is you have unlimited cash flow financing for your growth and unique business challenges. One other perceived disadvantage of asset based lending in Canada is simply that you have to report on your a/r and inventory in a more timely fashion - Quite frankly though we often tell clients that type of reporting will help them understand their business better .

So, you're probably intrigued! As we have shown you a solution to expand, meet cash flow needs, and access working capital cash flow that might otherwise not be available. Speak to a credible, experienced and trusted Canadian business financing expert on how to access a working capital loan and operating facility today - It’s your 2011 best bet for business financing.

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

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

Get A Cash Flow Solution In Place For Working Capital Financing – Your 2011 New Year Resolution

What if... just what if you could eliminate your working capital financing issues via a cash flow solution that works as you head into 2011 and beyond? That surely is the wish of most, if not all Canadian business owners and financial managers.

The reason you need that working capital is of course to pay of all your short term obligations in a timely manner. Typically those are accounts payable and items such as lease or loan payments, and of course we're including payroll and salary obligations in there.

As a business owner you need to be aware of whether your overall working capital position is stable, declining, or even increasing. There are some very simple measurements to assess overall situation. One of the most basic measures is simply to monitor sales growth against those current assets. Quick example - if your sales are growing by 20% per annum but you determine your receivables and inventory have grown to 35% of their former values, then, guess what, you have a working capital solution need . No surprise there, as most business managers intuitively know the strains that working capital needs place on a business.

Unlocking. That’s the key to a cash flow solution. What do we mean by that? Simply that you have to do two things to unleash the cash flow that is invested in your business in the form or receivables and inventory. First, you have to improve turnover. That’s an internal thing, and we can’t help our clients on that one, you have to do it yourself. Collect receivables faster, be more diligent in extending credit terms, and control your inventory.

Secondly, and here’s where are clients do ask for external help, is the need to ' monetize ' working capital accounts. How can that are done. The most common solution is bank financing via an operating line of credit for A/R and inventory that would address working capital financing needs.

But most business in Canada today, certainly in the small and medium sized sectors can’t access all the bank financing they need. if at all .

In business you achieve positing working capital financing via profits which fund growth, borrowing on a long term debt basis ( not our favorite!), or selling assets .. Again the latter not our favorite.

What is our favorite then?! It is, as we said, monetizing current assets. You do this via a working capital facility that margins A/R and inventory properly. These facilities, when combined with the inventory component, makes sense for firms with monthly a/r and inventory balances in excess of 250k. When that amount is less than 250k a receivable financing strategy is required. Our favorite is confidential invoice financing or discounting, which we feel is the ultimate cash flow solution. It allows you to bill and collect your own receivables and turns your firm into a cash flow machines readily able to handle all manner of sales growth.

Speak to a trusted, credible and experienced Canadian business financing advisor - he or she will help you pinpoint the working capital challenges and focus on a specific solution that makes sense for your firm. That’s a solid New Year resolution for your business that is achievable.

--
Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 6 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

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

Is a Leasing Company Your Best Choice For Business Equipment Financing – Choose Business Leasing That Makes Sense !

Common sense financing, fast approvals and flexibility that makes perfect sense for your firm - that’s why when you want to lease business equipment a leasing company is your best choice for business leasing financing.

If we were to ask you to name ten quick benefits of any type of business financing in Canada we quite frankly cant imaging you would name any other type of finance other then leasing . Just think about it.

Ten, yes ten solid reasons to consider a leasing company for your right choice of asset finance. Lets recap them - technological obsolescence protection, accounting benefits, cash flow management, potential tax savings, the right to own or not own the asset at the end of the lease, convenience, ability to match the asset financing to its useful economic life, quick credit approval ( boy do we like that one !) and finally often a lower cost and cash outflow .

Whew! That was a mouthful of reasons. Let’s circle back on one of those benefits, the issue of a prompt credit approval.

Canadian business financing got really challenging in the last couple years. Traditional financial institutions that funded equpment such as banks and insurance companies quite frankly simply stopped funding your business leasing needs. The leasing company you probably worked with also borrows, just in case you didn’t realize it. Somehow we all survived and as we head into 2011 the equipment financing industry is on a pretty good roll.

We keep coming back to flexibility when clients ask us about what the best choice options are in business leasing. Always remember that when you choose to finance an asset you can enter into a lease to own scenario, aka a 'capital lease ' , or, continuing on our theme of flexibility, you can opt for an operating lease - which simply states your desire to use an asset, not own it . Equpment that depreciates quickly, needs to be replaced due to technology, etc, is the perfect choice for an operating lease option.

Asset financing from your business comes out of very different needs - it might be a photocopier for the office, (or computers), equipment for your shop floor, and, even a commercial jet for your corporate meetings! (Well, we can dream , cant we?!). Our point is simply that any type of asset can be leased, and often bundled in with other ancillary services such as installation, maintenance, warranty, etc. Again, there’s our flexibility again.

Do you have a personal business relationship with the hundreds of lease companies in Canada? If you do we're jealous, and you obviously have a lot of time on your hands. If you don’t, speak to a trusted, credible and experienced Canadian business financing advisor who can ensure those many benefits of business leasing can be matched with the leasing company that suits your 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 6 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :


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

The Only Disadvantage Of Factoring Receivables And Why Confidential Accounts Receivable Finance Works!

Looking for a creative, ‘outside the box’ Canadian business financing solution? You may have investigated factoring receivables already but either didn’t understand how accounts receivable financing works, or, probably more to the point weren’t comfortable with how it works for your firm on a daily basis.

We've got the perfect solution for those worries, and its called confidential receivable financing, in Europe its more commonly known as C I D, confidential invoice discounting .

Let's examine why this type of business financing works in general, and then let's focus in on why our solution makes a solid solution even better.

In general terms when you 'factor ' your receivables you essentially sell them to the factoring firm. That can be done on a one of basis, on a periodic basis, or all the time. That’s one of the key advantages of this type of financing, you only use what you need, and... More importantly, you only pay for what you use!

Paying for what you use in accounts receivable financing is key because factoring, in general terms can be a more expensive type of financing. We say ' can be ' because quite frankly if you use it properly it actually could be a cheaper method of financing than your bank. That's a point our clients are always amazed at when we discuss this type of Canadian business financing.

The cost of factoring receivables can be significantly offset, or in some cases removed completely by your firm using these funds to take supplier discounts and purchase more efficiently and at better prices .

And... Think about this carefully, if you can finance your receivable the days you issue the invoice (that’s what factoring does) then you are in a position to generate funds to sell more products and services to your customers, generating additional margins and profits. Or, of course, you could take the non factoring approach and wait for your customers to pay you in 30, 60, or... dare we say it, 90 days. And that hasn’t worked for you in the past, which is why you are looking for a better solution.

So lets examine how factoring works, and lets get you over the hump, so to speak, on why our preferred type of accounts receivable financing is confidential invoice discounting .

When you generate an invoice under a factoring receivables agreement you receive 90% of the invoice in the form of immediate funds the same day. The other 10% is a holdback, and is remitted back to you promptly when you customer pays, less the financing charges, which are typically 1.5 - 2% for a 30 day period.

In 99% of traditional factoring arrangements the factor company verifies your invoice with your customer and actually collects it. Under confidential invoice discounting you bill and collect your own receivables, and are in a position to finance your firm without your customers and suppliers having anything to do with how you finance your business.

Speak to a trusted, credible and experienced Canadian business financing advisor on why confidential accounts receivable financing will work for your firm, allowing you to supercharge that cash flow and those profits!

--


Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com


Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 6 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :


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

Guess Who’s financing inventory and using purchase order Finance ( P O finance) ? Only Your Competitors – that’s who !

It's time. We're talking about purchase order finance in Canada, how P O finance works, and how financing inventory and contracts under those purchase orders really works in Canada. And yes, as we said, its time... to get creative with your financing challenges, and we'll demonstrate how.

And as a starter, being second never really counts, so Canadian business needs to be aware that your competitors are utilizing creative financing and inventory options for the growth and sales and profits, so why shouldn’t your firm?

Canadian business owners and financial managers know that you can have all the new orders and contracts in the world, but if you can’t finance them properly then you're generally fighting a losing battle to your competitors.

The reason purchase order financing is rising in popularity generally stems from the fact that traditional financing via Canadian banks for inventory and purchase orders is exceptionally, in our opinion, difficult to finance. Where the banks say no is where purchase order financing begins!

It's important for us to clarify to clients that P O finance is a general concept that might in fact include the financing of the order or contract, the inventory that might be required to fulfill the contract, and the receivable that is generated out of that sale. So it’s clearly an all encompassing strategy.

The additional beauty of P O finance is simply that it gets creative, unlike many traditional types of financing that are routine and formulaic.

It’s all about sitting down with your P O financing partner and discussing how unique your particular needs are. Typically when we sit down with clients this type of financing revolves around the requirements of the supplier, as well as your firm’s customer, and how both of these requirements can be met with timelines and financial guidelines that make sense for all parties.

The key elements of a successful P O finance transaction are a solid non cancelable order, a qualified customer from a credit worth perspective, and specific identification around who pays who and when . It's as simple as that.

So how does all this work, asks our clients .Lets keep it simple so we can clearly demonstrate the power of this type of financing. Your firm receives an order. The P O financing firm pays your supplier via a cash or letter of credit - with your firm then receiving the goods and fulfilling the order and contract. The P O finance firm takes title to the rights in the purchase order, the inventory they have purchased on your behalf, and the receivable that is generated out of the sale. It's as simple as that. When you customer pays per the terms of your contract with them the transaction is closed and the purchase order finance firm is paid in full, less their financing charge which is typically in the 2.5-3% per month range in Canada .

In certain cases financing inventory can be arranged purely on a separate basis, but as we have noted, the total sale cycle often relies on the order, the inventory and the receivable being collateralized to make this financing work.

Speak to a credible, trusted and experienced Canadian business financing advisor as to how this type of financing can benefit your firm.

--
Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 6 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

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