Discuss Among Yourselves - Financing SR ED ( SR&ED) Tax Credits Turns Your Claim Into Business Cash Flow Loan - SRED Claims Finance

Financing Your SR&ED Claim Is Still A Great Cash Strategy


Information on SRED ( SR&ED ) tax credit financing in Canada . A SR ED loan or the financing/discounting of your SRED Credits and claims monetizes your claim into valuable working capital .





So, the excitement continues to build, SR ED tax credits are a large part of the focus on what the government of Canada should be doing to help Canadian firms with their research and development. SR&ED claims total in the billions of dollars and have come to the attention of a lot of players in the private and government sectors. It's a pretty basic discussion, revolving around the question ' Is the SRED tax credit still working for government and business.

Let's highlight some of those issues, and key info on the program, but, most importantly, lets re enforce one key point - if you have a SR&ED claim you can still finance it , all the turmoil around the program notwithstanding ! And we'll show you how.

We hate weighing in on all those debates on the program, quite simply ours is to finance! But we guess it’s important that some of the key issues should be highlighted, and of course any major changes to the program will in fact probably affect how claims are financed.

So what the problem? Simply speaking it's that prudent people want to ensure that the tax system and the innovation around things such as tax credits work.

A lot of the discussion seems to revolve around what happens after Canadian business owners file their SRED claim. Simply speaking, the discussion is all about ' commercialization ' of the work and funds that go into those SR&ED credit claims. Currently the actual credits are primarily only available to private companies and there seems to be some discussion about moving the program into the public company sector. That seems to make sense because it would seem some early stage companies actually don’t go public via an IPO or RTO simply because of the fact they would lose their valuable SR ED claim status, and the non repayable cash flow that come from that program.

A number of current factors make the up calculation of the total combined provincial and federal tax credit SRED claim. Under the current guidelines companies can receive up to 1/2 to 3/4 of all they spend on key documentable Sred.

So it’s an interesting time for the SR ED tax credit. To the many hundreds of sred consultants out there who prepare claims we can only imagine where their heads are at these days.

But as we said, the one constant of SR&ED is that you can still continue to cash flow and monetize your claim via a SRED Loan. In fact the industry has gotten more creative and many financings are now done prior to the actual filing of the claim. This concept is called accrual financing and it simply means you recoup your expenses as you spend. Now that’s a true financing benefit for firm who can use the SR ED claim cash flow to survive and grow. (And we guess hopefully commercialize their products also!)

The financing couldn’t be simpler. be prepared to document your SR&ED work through your consultant or internal team. Claims are typically financed at 70% of total value, and no payments are made during the loan outstanding period.

Consider talking to a trusted, credible and experienced Canadian business financing advisor on monetizing your tax credit for critical cash flow.





AUTHOR - STAN PROKOP

7 PARK AVENUE FINANCIAL

CANADIAN BUSINESS FINANCING !

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

Want To Offer Customer Financing Programs? 3 Things You Need To Consider A Vendor Equipment Program

Use This Powerful Sales and Marketing Finance Tool !


Information on why Canadian firms should consider and offer customer financing programs via a vendor leasing initiative . Increase sales, cash flow and reduce your sales cycle with a customer finance offering.



We're all for an ' edge ' in Canadian business, that’s why we're quite sure that clients that offer customer financing programs via vendor leasing to their customers are probably doing better .. than you! Let's examine why, and how you too can get the sales edge via a vendor finance program. Oh and by the way, total cost = zero! That’s our kind of pricing!

If you speak to sales people they are the first ones to tell you that the sales cycle on many products can be a long one. But what if your firm could offer a tool that allows your potential customers to acquire your products and services in a way that removes a very large obstacle: you’re pricing! And doesn’t it go without saying that if you could in fact shorten that lead time in the sales cycle you would be closing in on the competition a lot more? We thing so, and lets examine 3 basic areas that you need to consider to set up a customer financing program.

So, consideration # 1. Have you got what it takes? If you firm are medium size to larger then you actually might want to give consideration to setting up an internal vendor finance division. Naturally that takes management expertise, as well an implied investment in operations and infrastructure. Have we forgotten anything? Oh yes, capital! As we said you can set up and offer a customer financing program for a lot of cost, or no cost. The reality is that this type of offering needs to be thought out in terms of what your customers are looking for. Things like the overall credit quality of your customer base are important.

Consideration # 2- If you choose not to develop of invest in a major program such as this what in fact are your options. I guess if we had to be totally honest (that’s our preference by the way) we can safely say that you retain most control if you set up and fund your own program. However, that just isn’t possible for thousands of firms who want to offer vendor leasing and finance, but don’t have the resources. By working with a select partner or Canadian business finance and lease advisor you can very easily ' outsource ' the program, all the while developing it for your own needs. You benefit from professional input, marketing assistance, and, oh yes, all the capital you need without any cost to your firm.

Consideration # 3 - You need to determine at the outset what you want to achieve from the program. Some key points to consider are simply how you will achieve the maximum benefits of the program from a short sales cycle, customer satisfaction, and positive cash flow. That positive cash flow is of course your benefit, as in all vendor financing your firm is paid 100% up front as soon as the customer signs off on your product as received, installed, accepted, etc.

So whats our bottom line. It’s pretty simple today, yet quite powerful. If you choose to offer customer financing there are significant benefits to be achieved. Examine the reasons you want to offer vendor leasing and finance, and then speak to a trusted, credible and experienced Canadian business financing advisor on how you can achieve these benefits to enhance your sales and cash flow. It’s as simple as a phone call away.

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.parkavenuefinancial.com/offer_customer_financing_programs_vendor_leasing.html

Balancing the Cost of Canadian Receivable Financing With The Benefits . Making Sense Of Factor Rates And The Cost Of Factoring

Make the Cost Of A/R Financing in Canada Work For You – Not Against You !



Information on receivable financing and the cost of factoring cost associated with this method of financing . How do business owners in Canada measure factor rates with the benefits of this type of cash flow and working capital financing .





It's not that hard of a business question... ‘Would you pay more for something if you thought the benefits far exceeded the cost?’ That's the ' balancing act' we refer to when we talk to clients about receivable financing, and the factor rates that are associated with that type of financing.


Most business owners today have either heard about or perhaps even looked into factoring cost when they have investigated Canada's newest form of working capital and cash flow financing.

So they already understand the basics, simply that it’s a financing mechanism that allows you to efficiently sell your receivables, aka ' your sales' as you generate that revenue. You sell them at a discount (the ' discount ‘is what we are talking about today ) to obtain operating cash flow.

So it's clear that the actual amount and size of your receivables is key to the transaction, not necessarily your overall financial health. And again, as we explain to clients, this financing is not a loan; it’s a simple monetization of your current asset, the receivable.



Typically you can reduce and stay on top of financing cost when you are able to prepare regular monthly financials, understand your cash flow ins and outs, and have a sense of what financial projections are relative to cash flow planning.

So, let’s get into the essence of our subject, factoring cost. We'll start by simply outlining the basics, which is knowing what your total A/R is, how much you wish to finance, and how this financing cost is tabulated.

The receivable financing industry in Canada calls the cost of this business a ' discount fee'. Customers tend to think of this as ' the rate '.

So how does this ' cost ' or ' rate' if you will, work? You are advanced a certain percentage of your invoices as you generate them. Typically in Canada this amount is 90%. Any invoices under 90 days old can be financed, and you should know that you can finance them whenever you want.

In Canada the rates for this type of financing run between 2-3%. A more typical rate for any deal in the 250k /mo area is 2%. Remember, that’s a discount that you sell your A/R under. In the simplest of terms you get cash today for 98% of your sale. Business owners can see that it sure is better to have a decent gross margin if you are going to give up that 2% in profits to generate cash flow.

Factors that affect your actual pricing are typically the ones that confuse clients the most. They include the ' holdback' rate we spoke of, i.e. the 10% that is held back on each invoice and remitted back to you when your client pays.

The largest factor in receivable financing factoring cost is the time it takes your customer to pay. Ensure that you fully understand the ' per diem' or daily cost of every day your client doesn’t pay. A great strategy is to finance your quicker paying customers if you can.

Miscellaneous fees are levied by many of the factoring firms in Canada. This has been a real ' bugaboo ' with us, as these fees can add up and increase you’re financing cost. Make sure you know what they are, and try and negotiate them down or out of your agreement.

Our recommended facility is the confidential invoice financing working capital facility. It allows you to bill and collect your own receivables without any notice to clients, suppliers, etc. And the cost of that? It should be the same if you are dealing with the right firm and advisor.

Daily mechanics, who you are dealing with, and reading the fine print tend to be a challenge for the business owner or financial manager that simply wants to run their business. Speak to a trusted, credible and experienced Canadian business financing advisor for assistance in understanding receivable finance costs.




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_financing_factor_cost_factoring_rates.html

Expert Cloud Financing Via Technology Leasing - Canadian IT Computing Fresh Perspectives

New Insights Into Technology Finance For Canadian Firms


Information on technology leasing benefits for Canadian firms considering cloud financing and IT computing strategies for growth and financial benefits.





Wow. Cloud financing and IT Computing. Seems a little bit difficult to understand sometimes, right? However, the more we thought about it the more it made sense; and we think we actually were talking about these stuff years before others. That’s because one of the best analogies we've used for over 15 years perhaps revolves around the light bulb.

Let’s explain. When you're looking to purchase electricity is your main concern owning the light bulb? We don’t think so, and talk about a depreciating asset!

So that's cloud computing in a layman’s nutshell, the ability to access it computing resources as a service.

And it always comes back to time and money right? Canadian business owners and financial mangers get the fact that saving thousands of dollars via technology leasing makes sense - and don’t forget about your ability to divert time and resources into that one miscellaneous issue, running your business!

So that’s cloud financing... using the power of the internet to use software and hardware... that you need... when you need it.

Technology leasing has always made sense, because computing assets are costly, and, oh yes, they seem to change once a week or so!

So let’s examine some of those significant aspects to cloud financing via tech lease strategies.

More often than not its always about the money, and the fact that you can leverage a large amount of hardware and software resources on a much more modest investment than outright purchase is a great reason to take advantage of ' the cloud'

Financial benefits of a tech finance solution to the cloud are pretty fundamental, less power and space requirements and the fact that your IT budgets won’t be continually faced with hardware and software upgrade cost requirements.

Canadian business owners, financial manager and IT mangers would prefer to pay for what they use, and not what they are told they might need. So lower monthly payments via a tech finance lease make total sense.

It's of course not always possible to determine what those future tech finance requirements might be, so Thats where scalability comes in, your ability to add computing power, additional software licenses for your users, etc.

We don’t even want to think of the time, planning, and budget approvals involved in a lot of aspects of IT computing and technology leasing strategies. Safe to say that the deployment of these decisions happens much faster in a cloud environment. And staff can of course access these offerings anywhere because... well, it’s the internet!

The bottom line is that cloud financing has great attractiveness to Canadian firms. Less up front investment, the ability to expense the transaction in the manner of an operating lease expense and the classic upgrade abilities of technology leasing make cloud financing a ' must check into ' for almost all Canadian firms we think.

Speak to an experienced, trusted, and credible technology financing Canadian business financing advisor who can structure a tech lease offering that makes sense 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/technology_leasing_cloud_financing_it_computing.html

The Canada Government Business Loan – Easier Than You Think ! SBL Loans Explained

Canada Small Business Loans – Don’t Overlook How They Can Help Your Firm Information on the Canada government business loan .


Benefits Of SBL loans for Canadian businesses seeking loan financing up to $ 350,000.00




The Canada government business loan. Does it seem unattainable to you or your business? It shouldn’t be, and part of the process of getting approved for SBL loans is simply the fact that Canadian business owners need to understand how the basic process of business lending translates into Canada’s popular federal financing program.

So how popular? Well using 2010 as an example over 7000 businesses took advantage of the program, which begs the question - ' why hasn’t my firm looked into the program!’


The reality that we share with clients is that the process of obtaining an SBL loan is actually as important as being qualified and approved for the program. Let's take a look at how the government, and the bank (banks administer this program) evaluate the SBL loan financing and what you need to expect. The bottom line, we're going to show you how to avoid surprises.

Rightfully or wrongfully so we consider ourselves somewhat the champions of small and medium business in Canada. That’s why we commiserate with clients who tell us of the deep frustrations they have in getting an SBL loan approved. And talk about time. We maintain a proper SBL loan proposal can be approved in days - so why do clients tell us they have spent weeks and months stumbling thru the process.

It all starts with interest. And we are not talking about interest rate; we're talking about disinterest from your banker or advisor. (By the way, the SBL Canada government business loan has some of the best rates in town!) The two most important things to recognize at the start of your SBL process is simply that you need to have a banker onside that both understands and supports the program. Ditto with an experienced advisor if you want a proper proposal in place that meets all the criteria of the program. And there arent a lot of criteria by the way.

Clients think that the bank and the federal government (the underwriter of the program) might view their application in a very conservative manner. The reality is that a huge majority of SBL loans are for start ups, and these loans provide ultra competitive busines rates, limited personal guarantees, and great structures, even offering no repayment penalties should you choose to pay off the loan.

If we had to isolate one or two major stigma around SBL loans surely one of them would be the issue of ' bureaucracy' around the paperwork and approval. But, as we said, if you have a proper proposal in place your financing can be approved in a manner of days - its a case of ensuring your banker knows and supports the program . Since the government, via INDUSTRY CANADA, underwrites the program clients need to appreciate that the banker is responsible for providing a proper paper trail.

So what is that paper trail? It’s not as bad as you think. It’s a business plan with some solid financial projections, and some back up info on your busines, such as your premises lease, as well as documentation around the assets you wish to finance. Assets financeable under the program are all type of capital equipment, including software, leasehold improvements, and even real estate.

Don’t underestimate the fact that you need to be in a position to document your own busines skills as well as having a respectable personal credit history. Oh, and by the way, since it’s a federal loan you might want to ensure you have your personal incomes taxes filed and up to date! Common sense, right?

So, bottom line, can a seemingly complicated process become easy, and fast. Consider seeking and talking to a trusted, credible and experienced Canadian business financing advisor who can put you on the fast track to success and approval for the Canada government business Loan - Make SBL loans work for you, in a timely manner!




ABOUT THE AUTHOR : STAN PROKOP
7 PARK AVENUE FINANCIAL

' BUSINESS FINANCING WITH THE INTELLIGENT USE OF EXPERIENCE '



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

Don’t Fall For Wrong Info On Getting A Canadian Franchise Business Loan - Get The Bank Franchising Finance You Need

Accept No Substitutes For Real Info On Franchise Financing In Canada



Information on how to get a franchise business loan . Franchising finance with and without the bank . Finance Your Entrepreneurial dream today




Misinformation. It's everywhere it seems. That’s why we think there's some room for some solid information around a franchise business loan in Canada, with, and without the franchising bank finance you are probably looking for.

The whole issue of ' the bank ' is probably where a lot of the mystery, apprehension and misinformation lie when it comes to franchising finance in the Canadian marketplace.

When you understand how the banks participate in franchise finance and your loan in particular things get a lot clearer. We think if we lined up ten business people and entrepreneurs and asked them if they thought banks would finance their franchise... well we hesitate to guess their answers, or coments.

The reality though, approached under the right circumstances and program the fact that you are purchasing a proven business model is actually very appealing to the bank - Again, under the right program.

So where do things go wrong? One of them when we talk to clients is simply the fact that they are incorrectly assuming that the financing they are looking for will be a loan for 100% of the purchase price. We only wish!

The reality is that you must be prepared to inject certain funds; we'll call it an equity or owner investment, into your business. Under the right franchise finance program that permanent injection can be as low as 10%. Naturally certain other ratios around liquidity and debt have to make sense.

Remember also that the right mix of debt, i.e. what you owe, and equity, i.e. what you put in is the classic success story for any business financing. It's all about the right blend. You don’t want to drain all your personal resources, that’s for sure - at the same time you want to be in a position to pay yourself and your franchising finance loan and show a reasonable profit also.

We keep referring to a ' program' Specifically its the government BIL program which is administered by the banks but underwritten, or ' guaranteed' substantially by the government , to your lender, the bank!

Clients often ask us if they can get franchising assistance from a finance point of view from their franchisor. We're skeptical that happens a lot, and if it is it’s certainly in a limited fashion - so don’t hang your hopes on that dream too much!


Does being prepared make sense to you in business? It sure has to us! That’s why a very simple basic package that covers info on yourself, your new proposed business, some financial projections and other misc data make a franchise business loan happen a lot faster.

What about the financing costs for that loan ?The truth be told ( and we did promise you the truth ) is the BIL program has the best rates in Canada for any start up business, which is more or less what your new franchise is . Rates are in the 3% over prime range, and other enhancements to the overall credit package of the program are very
attractive to you, the business borrower.

Your own business background and personal credit rating play a key part of any franchise financing decision. Be prepared to demonstrate paying your taxes on time, having good payments with your creditors, etc. Typically you won’t be asked to put up additional personal collateral such as homes, savings, etc. But again, that's if you have presented your overall picture properly.

We often supplement client financing with equipment leasing on certain assets when that makes sense - that might include P.O.S. systems, computers, etc.

Want to make sure you are getting the real scoop on franchise finance in Canada. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in this area; thereby enhancing your business success potential.




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/franchise_business_loan_bank_finance_franchising.html

Dear Abby : What Do I Need To Know About An Asset Based Revolving Credit Facility And ABL Loan? Signed: Anxious

ABL loans Are Great Solutions For Canadian Credit Facilities




Information on why the Asset based revolving credit facility known as an ABL loan provides cash flow advantages to Canadian companies looking for a business line of credit.



Dear Anxious - A great question and now for some hopefully great answers on the subject of an asset based revolving credit facility for your company.

No doubt you have heard about the relatively newest form of business financing in Canada .What you may not understand is simply how an ' ABL ' loan is different from comparative offerings, such as the traditional chartered bank line of credit.

While is has many similarities to its competitors in daily utilization, the benefit of the facility tend to be significantly more enhanced for firms such as yours.

Typical borrowing facilities of this type are secured by two key assets, your receivables and inventory. Your goal when you enter into such a facility is clearly to optimize working capital around whats available today, and what you might need in the future. That’s where an ABL loan comes in. By giving your asset based lender the security around those two assets you create a borrowing margin immediately available to yourself.

We know you're asking yourself ' so whats so different about that ‘... ‘Haven’t you just described what a bank line of credit facility is?’? The true merit of the asset based revolving credit facility is twofold, if we're going to keep things simple.

First of all the advance rates or the amounts you borrow can be significantly more than in other more conservative facilities. It is certainly no unusual to achieve an 85-90% advance rate on your eligible receivable, those under 90 days. And when it comes to inventory, don’t get us started ; because once its clearly understood what type of inventory you carry, what the general turnover is, and how you capture and track this asset you can usually borrow anywhere from 30- 70% against your inventory line .

The other key benefit is the absence of a lot of those ratio and covenant restrictions imposed by traditional financing, including the de-focus on areas such as your personal guarantees.

Let’s keep things simple. If you weren’t getting any significant inventory margining before, and were getting standard 75% a/r advance we can safely say that many companies can increase their borrowing capacity by anywhere from 50-100% on day one .. Via their ABL loan facility.

We keep using the term ' ABL LOAN ‘, but the reality is that your company is taking on zero additional debt in a true asset based line of credit scenario . You are simply ' monetizing ' assets for liquidity. Your facility goes up and down everyday, in the true business cycle as you buy inventory, reduce payables, generate sales, and of course collect them. It’s as simple as that.

So, who is eligible for this type of business borrowing? As we said, we like to keep it simple, so the reality is that any business requiring a working capital line of credit in excess of 250k is in fact eligible. And, get this, you can be public, private, doing well, financially challenged, or even in bankruptcy proceedings. We think we can safely say that ABL financing doesn’t discriminate - if you have assets your eligible in some form for this great new trend in Canadian business financing!

Well that’s it ‘Anxious’. Want more info? Consider speaking to a trusted, credible and experienced Canadian business financing advisor on the merits and differences in asset based revolving credit facilities 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/asset_based_revolving_credit_facility_abl_loan_.html