SR ED Tax Credits Are Under Attack! Financing SR ED claims Is Business As Usual – How SRED Finance Works

Whew! It's getting ugly out there! Canada’s sr&Ed Tax credits are under attack in a number of different manners. We'll review some of those criticisms and prove to you that financing sr Ed claims is totally... business as usual... if, and its a big if, you know what you are doing.

A recent Canadian national headline story screamed ' flawed r&d scheme cost taxpayers billions '. First of all, it’s not a scheme... it’s a program. (I am secretly hoping my old age pension is not a scheme) We're talking of course about the Canadian Scientific Research and Experimental Development Program - aka ‘SR ED ', 'SR &ED '.

The program has gained significant traction over the years, and not hard to understand why, when the essence of the program is that Canadian privately controlled firms are the recipients of billions of dollars of funding every year, in the form on a non repayable, real money cheque for a large percentage of their research and development. Thousands of firms all across Canada apply every year.

At its essence the program is clearly ' apple pie ' and ' motherhood ' - simply Canadian firms investing hard earned dollars in research of products and processes to further their competitive positions here in Canada, and of course globally, where it counts .

So whats the problem. It's hardly late breaking news to us, but the core issues around the current ' sr ed claims crisis seems to focus on who is preparing them , the dollars that are sometimes wasted or abused in that process, and the governments inability to validate every claim to the level they would perhaps like to .

Who would not agree as a taxpayer or a reasonable person that we would all prefer our tax dollars to be going to programs and things that work. That brings us around to our other core subject area - the financing of sr&Ed tax credits.

Firms in Canada have the option of either waiting for their cheque, which can takes months to a year, of monetizing their claim immediately for cash flow and working capital. In many cases this is the largest one time amount of funds that many new and emerging companies receive.

So why isn’t their a concern over sr Ed financing? That’s because it’s a common sense process based on the quality and size of your claim. A typical financing involves a straight forward business application, with copies of your technical claim and tax filing showing the sr&Ed tax credit has been filed. We spoke of the sred consultants that have proliferated the industry - the reality is that your claim is finance based on its having been prepared by a credible consultant with an industry reputation and experience. Even CRA, formerly Revenue Canada noted that ' the vast majority of claims are compliant '.

When you're financing claims the dollars count. The program itself allows for approximately 35% of your total R&D expenses as a total claim, as validated by yourself or your consultant. When you finance your claim you receive approximately 70% of your total claim as a bridge loan that balance held back as a buffer, and remitted back to yourself less financing costs.

Is there a bottom line? We sure think there is. Take advantage of a legitimate and great government program (not scheme!). Prepare your claim with the aid of a reputable expert consultant with credentials and expertise. If you wish to finance your claim seek the services of a trusted, credible and experience Canadian business financing advisor who will efficiently guide you through the financing process - straight to cash flow in the bank!

--

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

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

SR ED Tax Credits Are Under Attack! Financing SR ED claims Is Business As Usual – How SRED Finance Works

We're going to turn that one thing you need to know about equipment lending for your machinery finance and other lease and loan needs into a multitude of good news benefits !

Let's share and explore some tricks of the trade to make your equipment financing loan or lease strategy more profitable than you ever thought it could be, with options we are pretty sure you have never even heard of that have the potential to turn your lease financing of your assets into a profit center under the right circumstances.

Today we are focusing on the type of decision you make at the start of your machinery finance lease decision. We refer to machinery but of course we're referral to all tangible assets you choose to finance.

When Canadian business owners and financial managers comment the equipment lending process for their financing needs they often, unfortunately do a poor job of determining how they will handle the end of the lease option. This option can make or break the overall cost and profitability around your lease finance decision.

Let's use one practical example and demonstrate our point. Let's say you are following our advice and make a conscious decision that the asset will last you 5 years. (We are sure not talking about computing technology of course! - No 5 year terms recommended on technology!) What you need to do now is ensure that any analysis you make around the cost of ownership to the same term as you have picked for your lease. Mismatching those costs and benefits is highly inappropriate.

So, back to the core of our subject, which is the one thing you need to know - and that is that you have numerous profit and cut your loss type strategies at the end of your lease. Some of this is determined by what you sign up front, further enforcing our point that you need to view the whole equipment lending cycle in your mind at the start of your transaction.

Ok, let’s make some money, or cut our losses. How do we do that ? First of all , if you know for sure that you have a good handle on the assets useful life based on your experience enter into an operating lease , not a capital lease to own, thereby giving yourself the flexibility to return the equipment to the lessor at the end of term . Let the lessor take the risk on the asset and its disposition.

That same operating lease strategy has a dual benefit, if you are at the end of the term, and you think the asset is performing well and generating revenues and profits then agree to purchase the equipment from the lessor at the end of term. Dont forget that you and the lessor need to agree on what its true fair market value is.

Want to renew the lease at the end of our 5 year term - with a view towards still owning the asset. Then negotiate forcefully with the lessor for a reduction in your monthly lease payment. Can you do this? You sure can, because the lessor has already extracted all their profit on the original deal, having assumed you would terminate the transaction.

Here a true secret profit strategy. If you feel there is significant useful life in the asset consider purchasing it from the lessor at its fair market value and then sell or rent it to another firm who might need it. You just turned a former equipment lease liability into a profit center!

One final strategy is to purchase the equipment based on your knowledge of its value, use it for a specified period, and then trade it in for a new upgraded asset - thereby lowering your lease cost on the newer asset!

So, whets our bottom line. It’s simple. You need to be informed about the lease life cycle, understand what the equipment lending cycle is all about when it comes to your options and flexibility. Whether it’s a machinery finance loan, computing technology, or an aircraft, the ability to see your end of term options at the start of your equipment lending decision will make or save you thousands of dollars. Speak to a trusted, credible and experienced Canadian business financing and leasing advisor to reduce your costs and improve your profits by sound lease finance knowledge.
--

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

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

The One Thing You Need To Know About Canadian Machinery Finance Equipment Lending To Make Your Lease Or Loan Work !

We're going to turn that one thing you need to know about equipment lending for your machinery finance and other lease and loan needs into a multitude of good news benefits !

Let's share and explore some tricks of the trade to make your equipment financing loan or lease strategy more profitable than you ever thought it could be, with options we are pretty sure you have never even heard of that have the potential to turn your lease financing of your assets into a profit center under the right circumstances.

Today we are focusing on the type of decision you make at the start of your machinery finance lease decision. We refer to machinery but of course we're referral to all tangible assets you choose to finance.

When Canadian business owners and financial managers commence the equipment lending process for their financing needs they often, unfortunately do a poor job of determining how they will handle the end of the lease option. This option can make or break the overall cost and profitability around your lease finance decision.

Let's use one practical example and demonstrate our point. Let's say you are following our advice and make a conscious decision that the asset will last you 5 years. (We are sure not talking about computing technology of course! - No 5 year terms recommended on technology!)

What you need to do now is ensure that any analysis you make around the cost of ownership to the same term as you have picked for your lease. Mismatching those costs and benefits is highly inappropriate.

So, back to the core of our subject, which is the one thing you need to know - and that is that you have numerous profit and cut your loss type strategies at the end of your lease. Some of this is determined by what you sign up front, further enforcing our point that you need to view the whole equipment lending cycle in your mind at the start of your transaction.

Ok, let’s make some money, or cut our losses. How do we do that ? First of all , if you know for sure that you have a good handle on the assets useful life based on your experience enter into an operating lease , not a capital lease to own, thereby giving yourself the flexibility to return the equipment to the lessor at the end of term . Let the lessor take the risk on the asset and its disposition.

That same operating lease strategy has a dual benefit, if you are at the end of the term, and you think the asset is performing well and generating revenues and profits then agree to purchase the equipment from the lessor at the end of term. Don't forget that you and the lessor need to agree on what its true fair market value is.

Want to renew the lease at the end of our 5 year term - with a view towards still owning the asset. Then negotiate forcefully with the lessor for a reduction in your monthly lease payment. Can you do this? You sure can, because the lessor has already extracted all their profit on the original deal, having assumed you would terminate the transaction.

Here a true secret profit strategy. If you feel there is significant useful life in the asset consider purchasing it from the lessor at its fair market value and then sell or rent it to another firm who might need it. You just turned a former equipment lease liability into a profit center!

One final strategy is to purchase the equipment based on your knowledge of its value, use it for a specified period, and then trade it in for a new upgraded asset - thereby lowering your lease cost on the newer asset!

So, whets our bottom line. It’s simple. You need to be informed about the lease life cycle, understand what the equipment lending cycle is all about when it comes to your options and flexibility. Whether it’s a machinery finance loan, computing technology, or an aircraft, the ability to see your end of term options at the start of your equipment lending decision will make or save you thousands of dollars.

Speak to a trusted, credible and experienced Canadian business financing and leasing advisor to reduce your costs and improve your profits by sound lease finance knowledge.

-
Stan Prokop is founder 7 Park Avenue Financial ;

see http://www.7parkavenuefinancial.com
Originating financing for Canadian companies,specializing: working capital, cash flow, and asset based financing , the 6 year old firm has completed in excess of 45 Million $ of financing for companies . For info / free consultation on Canadian business financing / contact details see:

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

Not Getting All The Lease Equipment Financing For Business You Need ? Financing Loans Made Simple !

Rumour has it you aren't getting your share... of the amount of equipment business financing enjoyed by your competitors and others. Let’s demonstrate how finance loans can be addressed in a timeline that makes sense for your firm, with the rates, structures and terms that your competitors already enjoy.

We don't think we have met any business owner recently who doesn’t feel that the traditional route or bank borrowing no longer makes sense for their asset acquisition needs. We don’t have to explain the benefits of dealing with a specialist in any industry, so the firms that offer lease financing in Canada is where you will find financing products that work for you.

We also don’t need to mention of course that if your firm is a start up, smaller in size, or perhaps going through some challenges... well... guess what - you are still a 100% candidate for lease and financing loans .

Many owners and managers searching for equpment financing for their business needs are under the pre conception that certain assets can't be financed. That’s where you ability to quickly focus in on a specialized firm that provides business lease solutions for your acquisition - and that includes computers, office equipment, plant and machinery assets, vehicles, and even intangibles such as software !

We are always intrigued by the reasons business owners offer up for leasing consideration - however when you think about it all those reasons come down to several key points - cash flow and working capital management, tax and accounting issues, matching the use of the asset to its estimated life . While every Canadian business owner likes to feel their needs are unique we are pretty sure that if you walk through those 3 key areas we noted above you will be able to significantly simplify your business equipment financing.

Is there a way to simplify the entire process? There sure is. Simply view what we will call ' the big picture ' around your transaction. Envision it as follows - your application and exchange of financial info with your lessor, discussion or correspondence leading to approval, documentation, and then finally funding and payment... which is often simply the payment made to your supplier , allowing you to receive the asset and put it to work for cash flow and profit generation .

There are hundreds of equipment financing and lease financing firms in Canada. We are quite sure you do want to ' simplify ' your business financing so speak to a trusted, credible and experienced Canadian business financing advisor who can ensure your business lease is positioned properly, approved, and funded . Now you are getting your share!
--

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/equipment_financing_business_financing_loans_lease.html

Confidential Cash Flow Factoring - Turn Accounts Receivable Into Your Best AR Finance Strategy

We are going to demonstrate how a little known, and in our opinion almost a secret strategy can called confidential cash flow factoring can turn your accounts receivable into a virtual cash flow machine, turning past ar finance obstacles into cash flow solutions!

Search engine analysis will show you that thousands of Canadian businesses search everyday for what they hopefully believe will be valuable information around the most popular method of business financing today. Those businesses, of all types and sizes by the way ( even the largest corporations in Canada ) want to know why cash flow factoring offers unlimited unlocking of cash flow based on your sales and receivables .

Initial explanations and overviews to clients sometimes become bogged down in key issues such as the cost of this method of ar finance, and, equally important, is the unwillingness of some clients to accept how invoice discounting (that’s another name for this type of financing) works.

Canadian business owners and financial managers want to like a good thing, at the same time they want to know how it works and how they avoid any pitfalls. Lets discuss the ' how it works ' portion first and then share with you the method we believe eliminates the major pitfall perceptions viewed by many firms considering this type of financing.

We'll focus on small and mediums sized business - the larger corporations have access to all sorts of financing and external finance strategies - while the small and medium sized businesses in Canada tend to rely on their own cash flow to fund their ongoing growth and working capital. In fact many firms realize they have potential to grow sales and profits, but cant because of that lack of working capital.

Back to the 'how it works ‘! Cash flow factoring of accounts receivable is the ongoing sale, in whole or in part of your sales invoices as you generate them and deliver products and services to your customer. The invoices are purchased at 1- 3% discount from yourself, and you receive cash, 99% of the time the same day, for those sales. So, in effect all your sales now fuel that cash flow machine you have turned your company into.

So far, so good, right? Where complications arise, especially in Canada, is the fact that this type of financing requires your client to be notified of the process, directly, or indirectly, and payments are required to be forwarded to your factoring finance firm. Canadian business, in our eyes, has a reluctance to involve their customers in their internal financing policies, and challenges. As a result, many firms are skeptical of entering into ar finance of this manner.

Is there a solution? We told you there was - it’s a breakthrough called confidential invoice discounting. This type of financing comes at the same cost, allows you to bill and collect your own receivables, and gains all the benefits of that cash flow factoring machine we turned your company into.

Speak to a trusted, credible, and experienced Canadian business financing advisor who can put you into a proper ar finance facility, allowing you to reap the benefits of cash flow invoice financing, while at the same time allowing competitors, customers , and vendors to remain exactly where you want them to be, outside your financing strategies and challenges ! Let's let your competitors try and figure our how you're doing so well in both growth and 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 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/cash_flow_factoring_accounts_receivable_ar_finance.html

Why The Canada Government Small Business loan Is Your Best Bet For Start Up Financing

Do you want 957 million reasons why the Canada government small business loan is your absolute best bet in Canadian business financing for small and medium size firms? Well, that’s how many dollars the government program we are discussing put into the economy last year (2010).
Small and medium sized firms, including start ups, are the recipients of the financial benefits of this program. It is very important to clarify our reference to ' medium size ‘, since the cap for sales or projected sales is 5 Million dollars in revenue. That is to say the program only lends to firms with revenues under that amount.
Should your firm, or yourself as a new entrepreneur be looking at this financing. Clearly the lending criteria, as well as the overall rates, terms and structure of the government small business loan lend themselves for serious consideration. Rates are comparable to what larger Canadian corporations can achieve - and if you want the real kicker here it is - a personal guarantee by shareholders is required for only 25% of the entire loan value. That in itself is appealing to many entrepreneurs and business owners who do not wish to offer up full personal guarantees.
How much can I/we get? That’s the very firms and very typical question that we are always asked. Well, here is where even more good news kicks in. Up until 2009 the cap on the program was 250,000.00 - This amount was raised to 350,000$ during the most recent economic recession. 350K continues to be the loan maximum - however for borrowers who wish to facilitate a real estate transaction using the program you can actually go to half a million dollars on the program .
Why isn’t everyone or almost everyone taking advantage of the program? We can't offer up all the reasons, but some of the better published ones relate simply to the fact that most eligible recipients are not aware of the program! That’s almost too unbelievable when you consider the very attractive rates structures and terms that we speak of.
Another typical belief is that while the Canada government small business loan is guaranteed by the federal government (the owner of the program is Industry Canada) the program itself is administered by the chartered banks in Canada. Many feel the banks have not done a great job in promoting the program, due in some part to staff training issues, as well as the paperwork admin, and reporting that banks have to undertake when they are asked to create such a loan on your behalf.

Could you use funds for land, equipment, vehicles, software, leasehold improvements? Those very specific items are what 99% of all government small business loans are utilized for.
It is important for borrowers to also investigate what the program can’t be used to finance.
In summary, yours is not to question why - yours is to take advantage of the program .Speak to a trusted, credible and experienced Canadian Small Business Financing Advisor to learn how you can immediately take advantage of this great, and often mis-understood small business loan 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 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :


http://www.7parkavenuefinancial.com/canada_government_small_business_loan_financing_2.html

Secrets To Obtaining Best Lease Finance Rates For Equipment Leasing In Canada

Do you think there is a big difference in approval success in equipment leasing finance and lease finance rates among different companies? We sure think there are and we're going to show you how to master the information that will allow your firm to achieve equipment finance success.

Most business owners and financial managers in Canada who acquire equipment realize there are much touted significant benefits to equipment leasing. When business owners approach asset acquisition they do it in the view of trying to determine if they should ' lease' or ' buy’ the asset in question. The decision often focuses on two issue, is it less or more costly to lease, and finally what are the cash flow advantages to utilizing this type of financing.

Achieving the best lease finance rates comes down to a couple key issues - the overall credit quality of your firm, and more importantly, how you present that credit quality to the lessor. Secondly structuring of your transaction, hopefully with your input. Significantly affects your lease rate. For example a larger down payment will of course drive your overall rate down considerably - i.e. you are financing less.

More often than not a simply first and last payment is all that is required as a sort of down payment or security deposit on your transaction. Other key points that will enhance your equipment lease rates is the importance your place on items such as the ability to return the equipment to the lessor at the end of the term.

How does returning the equipment at the end of term to the lessor become a ' secret ' of great lease finance rates? It's simple, your decision to return the equipment at end of term typically allows you to opt for what is known as an operating lease - as such the lessor makes a bet on the ability to sell or remarket or release the equipment to another party. That type of transaction typically drives the overall lease rate down significantly.

Most business owners are incredulous that in some cases you could actually achieve a ' negative ‘lease rate on your transaction! How's that for a great inside tip or secret on equipment lease financing !In the transaction we just detailed it is possible that all your payment don’t even add up to the original purchase price of the equipment or asset - due, as we said , to the lessors belief they will get the equipment back . And you should be very happy to let them take that bet and risk, because that becomes the lessor’s problem, not yours, you simply benefit from the great lease finance rates on your transaction.

Another more obvious benefit of equipment lease financing is that it’s available to all firms, including start ups and firms that might be financially challenged; therefore lease finance rates you achieve are often considerably better than other forms of finance, such as bank term loans, etc.

In many equipment finance transactions the ability of the owner to provide a strong personal guarantee can often enhance the overall pricing of your transaction in your favor, although we acknowledge of course that most business owners would prefer to avoid, not offer up such guarantees.

In summary, it’s important to understand how lessors price your transaction, meaning what factors are important to them to create a satisfactory return. Being armed with the ability to properly present your firms overall credit quality, as well as focusing on benefits that are important to your firm that affect lease finance rates is what successful equipment leasing finance is all about.

Speak to a trusted, credible and experienced Canadian business financing advisor to guarantee you will receive the best rates, terms and structures, potentially saving you thousands of dollars on any acquisition via asset 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 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

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