Dear Abby - Can I Really Use The Canadian Film Tax Credits (credit ) For 30 - 45% Of My Film Finance Projects ? Signed - 'Anxious '

Dear Anxious - Look northward - to Canada that is, and you'll find that with all the turbulence in U.S. film finance as it relates to tax credits that the Canadian tax credits as they relate to film televison and digital animation will provide you with a tremendous sense of relief. Often the Canadian tax credits can finance anywhere from 30 - 45% of your entire project (sometimes more) based on proper certification of your credit and a solid finance plan completed by yourself as producer.

Ontario, British Columbia, and Quebec have historically been the dominant geographies for film, TV and animation production in Canada - but tax credits are available in all provinces. On many occasions the geography that is best suited to your project is often the most sensible with respect to that provinces tax credit program.

It comes as now surprise to anyone in the industry that film finance is a journey. The challenge is maximizing the true value of your project via a potential theatrical release, and of course the pre requisite DVD, downloads, and broadcast and international rights. All of those will create your future revenue streams, but unfortunately won’t get you the cash flow you need today.

We’re assuming you are the owner of a Canadian project in our aforementioned genres of movies, TV, and digital media. There are what we can call 4 pillars of financing your project. They are grants, debt, equity, and of course our favorite - the film finance tax credit sponsored by the combination of federal and provincial government.

We're going to have to let you take care of grants, debt, and equity - but, and its good news, the Canadian tax credits on your project can cover anywhere from 30-45% of your project. In many cases even a higher amount is available, which comes into play due to certain factors such as shooting or production being held farther away from major centers such as Toronto, Vancouver, Montreal, etc .

The enhanced tax credits come back to you as a cheque - a true non repayable tax credit. The add on good news is that your film tax credit can be monetized or cash flowed, thereby securing automatically a very large percentage of your budget. The government in Canada supports the program strongly; having determined it’s a major overall economic benefit in employment, tax generation, and culture benefits. Bottom line - it’s a direct cash subsidy to your project.

In order to maximize your film finance utilizing the Canadian tax credits you simply need to ensure you have a proper production budget and finance plan. An experienced entertainment tax accountant will help you maximize the total amount of funds applied for in your credit. You will want to ensure you have valid title to your project, and that you have a properly legal entity set up to capture all the revenue and expenses of your project.

A special point system around any Canadian producers and key personnel will further enhance the total dollars you receive. There is data to suggest that 80% of the films that leave the U.S. for production in other geographies end up in Canada.

Your Canadian special purpose vehicle for your project must be Canadian owned, and pay special attention to the points system for creative positions such as director, screenwriter, etc.

So in summary dear ' Anxious ' you can definitely use Canadian tax credits as a key part of your finance plan. Applications can even be made online these days!

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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/canadian_tax_credits_film_finance_film_tax_credit.html

Financing Your Franchise in Canada - A Winning Formula For Funding Via Franchising Finance Loans

Looking for franchise financing ? The dictionary defines formula as ' a rule or method of doing something ‘. We'll let Charlie Sheen define his version of ' Winning ' for you... but in our case its identifying for new franchisees the best methods of obtaining franchise financing and finance loans for the funding of their new business . Let's get started!

Second challenge after picking your franchise - we are assuming you have already done that, is determining how you will finance it. The Canadian landscape differs significantly from that of the U.S. experience; although we can assure clients that the franchise industry as a whole in Canada is doing very well.

Many franchisees often are concerned about the need and requirement for ' collateral ‘on a franchise loan. That is partly because they view franchise finance in the same manner as they would view a traditional loan application. Wrong! The reality is that our formula calls for no collateral requirement.

The majority of franchises in Canada are funded in two manners; they are the true secret to the winning formula we are sharing. The first and most popular method is taking advantage, (properly, and we'll come back to the term properly) of a specialized government program known as the CSBF/BIL program. Subsidized and ' managed' by a department of government in Canada known as INDUSTRY CANADA the program is the driver behind our winning formula.

Why is the BIL/CSBF loan so appropriate for financing for franchise? Consider this, when you started reading our article you probably thought that you need outside collateral , a huge down payment, and potentially outside collateral to get your ' franchise loan '. Nothing is farther from the truth.

Many franchise experts claim you need persistence and creativity to get a franchise loan financed in Canada. We disagree, you just need an expert and some hard work around satisfying the requirements of the loan program we have identified.

Those requirements include some very common sense things such as a reasonable personal credit history, a positive personal net worth, and a business plan that outlines your experience and expectations of financial success for the franchise funding. This typically includes your estimate of sales, expenses, profits, and, oh yes, cash flow that will repay your loan.

We also point out to clients that there are some other mechanisms we can ' add on ' to the BIL loan to enhance the financial proposal. They are equpment financing or leasing in some cases where hard assets are being acquired, as well as potentially a vendor take back if you are buying an existing franchise from a current franchisee.

Our formula for franchise success could not be more simple - identify your franchise, work with a Canadian business financing expert to maximize your ability to close a BIL loan in a short amount of time. Your package will include your business plan, background experience, and a real focus on how the loan will be repaid. If you need add on financing to make your transaction work consider equipment financing for some assets in the business or a term working capital loan that might compliment the entire package.

Simple. Relatively speaking yes. Speak to a Canadian financing expert on creating a short timeline to your success via our winning formula.

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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/financing_franchise_finance_loans_funding.html

Turning Canadian Business Equipment financing Challenges Into Opportunities - Leasing Finance Works!

Over the last year or so business financing availability has declined for many firms. Let's examine how one strategy, business equipment financing - can be turned into an opportunity for your firm to succeed. Leasing finance works and we'll show you how with valuable inside tips.

How many options does your firm have when it acquires new equipment? To our way of thinking, only three - you purchase it, you lease it, or you arrange for term loan financing. The math around leasing finance often shows you it might be marginally more expensive than outright purchase. That’s because more financially astute firms have the ability, and do, to run extensive lease versus buy scenarios.

So why would you typically want to choose a financing option such as business equipment financing via a lease if it turns our it’s a bit more expensive.

We think the compelling reasons to utilize lease financing revolve around some very important ' real world ' issues such as quick access to credit, conserving operating working capital, accounting issues such as keeping the asset potentially off your balance sheet , and , getting down to brass tacks .. You as a user don’t want to end up owning a ' boat anchor ' of an asset that is still on your books but has little use or very little economic and financial value.

If your time is at a premium, and which business owners time is not, then you will surely be pleasantly surprised that the life cycle of acquiring your asset and financing it is much short via an equipment financing solution.

We have already shown you that financing options are limited, so why not choose the easiest and quickest route to approval - which more often than not is business equipment financing. The majority of approvals can be arranged within a week or so if you have a basic package that includes the asset quote or descriptions, your financials, and some basic business overview material on your firm and industry.

Many times the business owners challenge is what to do with equipment at the end of the lease - a lot of things can change in 3 or 5 years, which are the most typical lease terms. (By the way, it’s not unusual for some assets to be financed via leasing finance over 7 - 10 years; but you'll need to demonstrate company viability and asset value at end of term).

But back to that end of lease scenario - think of all the challenges - which might include: do you want to own the equipment, will you choose to return it, and will the asset be required for some indefinite time at the end of the lease...? Etc. All of those are unknowns, or challenges to your business financing. Yet leasing finance solves all of those - a carefully constructed operating lease can give allow you to face all three of the above challenges head on, and be in control of your asset destiny.

In summary - all business financing tends to be a challenge. In some cases of asset acquisition the challenge is layered with elements of risk and a lot of the unknown. Speak to a trusted, credible an experienced business financing advisor on how you can turn asset acquisition challenges into controlled opportunities for growth, asset management, and profit.

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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/leasing_finance_business_equipment_financing.html

ABL Loans Are The Newest Trend in Canadian Asset Finance – Why Lenders Offer This Revolver For Asset Finance

Let's get right to the point. Are you not surprised that many Canadian business owners and financial managers are unaware of the importance that ABL loans via abl lenders play in the asset finance arena in Canada. Are you not even surprised that this type of loan financing (actually it’s not a loan - more on that later), called a ' revolver ' competes with Canadian chartered banking facilities on a day to day basis, and wins!?

Part of the confusion , misconceptions and mis information around this type of financing actually comes from the name and terms around the ABL revolver, which can ,and do mean different things to different people .

In the pure sense and most relevant meaning of the term in Canadian asset finance the ABL facility provides a comprehensive asset financing or monetizing of current ( and in some cases ) fixed assets which allow a company to significantly enhance their working capital facilities . This type of facility competes head on with Canadian charted bank facilities.

The asset finance lenders in Canada have recently gained significant traction. We feel the primary reason is simply that their facilities offered enhanced borrowing with a focus on assets, unlike comparable chartered bank facilities which come with a stringent requirement of clean balance sheets, profitability, ability to maintain ratios and covenants, and in many cases requiring outside collateral.

The 2008 and 2009 global recession enhanced the viability and visibility around ABL loans. Banks all over North America pulled back on commercial lines of credit and revolver finance - leaving thousands of companies with reduced, restricted, and in some cases no borrowing or operating facilities.

Most Canadian business owners and financial managers are simply not aware of who the ABL asset finance lender is. Typically they are smaller boutique firms, often subsidiaries of major U.S. corporations and banks .Their teams are small, highly focused on one thing ( monetizing assets for cash flow and working capital !) and offer facilities anywhere from 250k to hundreds of millions of dollars .

Many Canadian companies are also not aware that several of the Canadian charted banks have created asset finance lenders within their bank, and the ultimate irony is that when a loan is called by a chartered bank a competing division within the bank can often rescue the company. We'll let you mull that one over!

As we noted facilities are available for any amount over 250k but the pure play ABL revolver typically comes in at 3 to 5 Million dollars as an entry point. Rates are often competitive to Canadian banks, and small firms can pay a significant premium in financing charges , the offset being able to access working capital to facilitate growth and profits,

In summary, every business owner or financial manager concerned with operating finance should investigate and consider an ABL solution. Normal banking criteria does not apply and you have the ability to grow, restructure, and in some cases easily acquire a competitor using this finance strategy. You consider your firm unique and different, so investigate a new and unique type of business financing. Confused? Hopefully not. Interested? Speak to a Canadian business financing advisor on ABL loans today.

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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/abl_loans_lenders_revolver_asset_finance.html

Guess What Your Business Needs Today ? Examine Working Capital and Small Business Finance Loan / Loans Options

Just picture your firm having access to all the working capital you need. Seem impossible? Not really... if you have a solid understanding of your options and your firms capability of qualifying or executing on those options.

Whether you're the largest corporation in Canada or a small new start up (and everything in between) your business needs working capital. In Canada small business financing loans and financing arraignments for working capital are limited to a handful of possibilities - but being aware of what they are and qualifying for them could be the solution to your constant focus on cash flow via some sort of working capital loan.

It is probably easier than you think to ensure you are addressing the cash flow challenge correctly - where it gets somewhat ' thorny ' is matching a solution to the problem or locating an expert that can provide you with the business financing assistance you need .

Two key elements of your first step working capital assessment are your gross margins and your turnover. That’s the big problem we have with text book / academic solutions to working capital - they point you to the text book calculation - give you a formula which essentially has you subtracting current liabilities form current assets, and voila ! the inference is you have working capital . However, our clients have never paid a supplier or completed a company payroll with a ratio!

To properly assess your working capital needs focus on understanding your turnover - how much inventory do you carry, what are the days outstanding in inventory, and as importantly, or more importantly, are your receivables turning over . Have you realized that for many firms 80% or so of the total of all the business assets you have are tied up in A/R, inventory, and, on the other size of the balance sheet let’s not forget payables.

So can you have financial success based on your new found knowledge and analysis of your cash flow and asset turnover. We think you can.

Canadian business financing solutions to small business finance loans really revolve around a couple viable solutions. Typically, in our experience Canadian chartered banks cant satisfy your business working capital needs - if only for the reason that they rarely finance inventory and require significant merit in your overall financials, profitability, external collateral, personal credit worthiness, etc .

So, where do you go from there? The other solutions are very viable and can take you to a potential 100% turn around in cash flow - they include working capital financing as a bundled line of credit on a/r and inventory via an independent finance company .

For firms that are larger we believe the ultimate tool is an asset based line o f credit that provides high leverage margining on all you business assets. Other more esoteric solutions, but still very viable although somewhat misunderstood are securitization, and purchase order financing of new contracts and orders. (Your suppliers are paid directly for the orders you have in hand - what could be better than that?)

Finally, coming up the road at lightening speed is factoring and invoice discounting. We mention them lastly but they are probably the most popular method, gaining traction everyday. Our favorite is confidential invoice financing, allowing you to control your financing .

So there you have it. You have identified new ways to determine the need; we have outlined 4 or 5 solutions that will take the guess work out of working capital. These loan and financing options are available with a bit of research , and , if you choose , speak to a Canadian business financing advisor who can provide you with timely and valuable assistance in your cash flow needs .

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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/working_capital_small_business_finance_loan_loans.html

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!

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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

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.
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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

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