The SR&ED Bridge Loan – The ‘ Hushed Truth ‘ On ( SR ED )SRED Tax Credit Financing Loans In Canada

SR&ED ( SRED ) Finance is… Alive and Kicking!

Information on the SR ED bridge loan in Canada. SRED Tax credit financing is a valuable way to enhance cash flow. SR&ED loans were and are available during recent program changes .



The SR&ED bridge loan in Canada. Did it almost become a hushed secret at a time when the very existence of the SRED tax credit seemed in doubt?

The real secret of SRED loans in Canada is that they were available for your tax credit prior to the current budget, and, guess what. ? .... They remain in place today for your tax credit financing strategy!

Most Canadian business owners who utilize the SR&ED program in Canada were keenly aware that the very existence of the tax credit seemed in doubt in 2012.

Well, the dust has settled and if we had to say there was a general consensus we would have to say that in general there's a status quo around the program. Many firms who felt they would do ' better' or ' worse ' under the new changes are finding that it’s a case of ' it depends ' - so it could have been a lot worse.

Thousands of Canadian businesses received Billions of dollars every year under the program, the formal name of course being Scientific Research & Experimental Development. Hence SR&ED. Your firm’s ability to demonstrate you have improved a process or processes, or come up with new technology or software qualified you for Sred.

We’re not ( fortunately ?) accountants , we're financiers, so we'll let you talk to your SRED consultant or advisor on the various rates changes that took place, some up, some down , under the program . We would note that the biggest change seems to be the fact that capital expenditures don't qualify under the program, but salaries and materials and portions of your overhead still qualify.

We'd love to take a poll one day on how many Canadian firms know that SRED Tax Credit Financing exists in Canada. We'd venture to say is clearly the majority, not the minority. So if we had to reveal that ' hushed secret ' on this major Canadian tax credit incentive it's simply ' Hey, you've got an options on your SR&ED tax credit .. You can wait for months, or much longer for you refund cheq. . OR ... you can finance your claim.

If you do have a claim that's prepared by an experienced and credible SRED consultant that claim can easily be financed. The basic rules around that are as follows - The SR ED bridge loan gives you approximately 70% of the face value of your claim. No payments are made during the loan period - at final approval and payment of your claim by Ottawa and the province you receive your remaining 30%, less financing costs, a simple application and you ability to provide the SRED tax credit as collateral is all that’s required.

So is SRED dead? It looks like it isn’t. We can hear the sigh of relief among all those SR&ED consultants who provide the majority of the writes ups on claims in Canada.

And, don’t forget. SRED tax credit financing loans are here today, they were here yesterday, and they will be here tomorrow.

Speak to a trusted, credible and experienced Canadian business financing advisor on help for SR ED bridge loans for working capital and cash flow for your Canadian 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/sr_ed_bridge_loan_sred_tax_credit_financing_loans.html

Cracking The ( SBL Loans ) Code . Fast Track Your Approval On The Canada Government Small Business Loan

Secrets To Success On the SBL Government Guaranteed Loan

Information on SBL loans in Canada . How entrepreneurs and Canadian business owners can increase Canada government small business loan approvals for financing success.



SBL Loans in Canada. How can the Canadian business owner or financial manager ' crack the code ' when it comes to the Canada small business loan. It’s of course a government program that helps businesses get the financing they might otherwise not be able to achieve.

Let's examine some crucial tips, dare we say ' secrets ' around cracking the secret code known as ' approval' on a program which has helped almost 8000 different businesses annually to either launch or grow their business.

We think we can all agree that if you don't understand the program offering then you clearly can't formulate a proper plan for approval

First of all Industry Canada although sponsoring or ' underwriting ' the program is not the direct lender under the program. So, bottom line, no trips to Ottawa required. (We lived there for ten years though and it’s highly recommended for a vacation!). So if the government loan is not obtained from the government, who do you get it from? The answer is a Canadian chartered bank, and several other miscellaneous instantiations, but essentially it’s the banks.

Since there's virtually a Canadian chartered bank on any business corner in Canada cracking the code on that is easy, right. Not so fast, partner!! The reality is that you need to find a commercial/business banker that is attuned to the program, understands it, and has the ability and credibility to sponsor and recommend your loan. That banker is best obtained via a referral from any trusted Canadian business financing advisor of yours, or even your accountant or lawyer.

To crack the code on successful approval we can summarize by saying that you need to have a solid understanding of:

Eligibility

Amount of Financing Available

Repayment Terms

Usage restriction of the funds (this is critical and widely misunderstood)

The approval process

Businesses in Canada with revenues fewer than 5 Million dollars, even if they are a total start up are eligible for the Canada Small Business Loan. (The government calls it the CSBF program / BIL)

Financing up to 500k can be sought, but that amount pertains just to real estate, so typically the cap on the program is 350k.

Repayment terms and structures are excellent - Terms of 1-7 years are generally available, 5 is a typical term we see all the time. Rates are essentially 3% over prime, making that a great rate anytime, even better in the current low interest environment.

Proceeds can be used not for cash or working capital, but for equipment leaseholds, software, computers, architectural design fees, etc.

The approval process consists essentially of a need for a crisp busines plan or executive summary, a detailed cash flow analysis and repayment plan, and miscellaneous info on yourself and your business that you would associate with any financing application.

Need help to ' crack the code '. It's not as big a secret as some maintain. Speak to a trusted, credible and experienced Canadian business financing advisor for help with ' the code '!







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/sbl_loans_canada_small_business_loan_government.html

Canadian Franchising - Key Components Of A Successful Loan For A New Or Existing Franchise

Financing A Franchise In Canada

Information on successful components of a franchise loan for a new or existing business in Canadian franchising .



Canadian franchising. Got your act together? The act we're referring to of course is your ability to successfully secure a franchise loan for a new or existing franchise in Canada.

Let's focus in on some critical components of what to do and with whom!

It's not as hard as you think to turn one of the most successful business models (franchising) into a successful financial solution for the acquisition of your business. Naturally you have the option of building or inventing your own business model in any industry but surely utilizing a proven method success already in place has significant appeal.

And the financing for your franchise can be focused on any number of industries where the franchise model is prevalent. You ability to be able to generates profits while duplicating the franchisors success is not limited to geographic issues , and , more importantly , the need to invest large amounts of capital when in fact you don't have to under the franchise model .

Many clients we talk to are looking at either acquiring an existing franchise as opposed to a new unit. There are advantages to both and we are pretty sure based on experience that neither, new or existing offer any superior advantage.

But our subject is of course focused on the financing re: your franchise loan .of that new or excising business. The one positive thing when you are considering a resale by an existing current franchisee is of course that you have access to financial performance of the existing owner.

That typically includes several years of financial statements and a proper disclosure of assets in the business. If the owner still has debt outstanding in the business that debt, in the form of bank loans or equipment leases or working capital loans, must be addressed in the context of your purchase and refinancing.

In the case of a franchise which has hard assets and leaseholds, (as opposed to a service business) an appraisal of those assets at fair market value is both recommended and in fact probably required.

We also point out to clients early in the process that they structure their purchase as an asset sale as opposed to a share sale , as share sales are exceptionally difficult to finance other than on an all cash basis - and then of course its not a financing per se, its a ' cash sale ' . A cash sale may or may not be the right thing to do. Too much equity certainly lowers your overall return on investment and ties up your personal assets, quite often permanently.

Don't forget also to address employee issues with respect to financing liability of any severance, termination scenarios, etc.

If you finance your Canadian franchising purchase via a government SBL loan (the preferred solution for many franchisees) an appraisal of an existing franchise is certainly required. If in fact a new or turnkey unit is under consideration you require a detailed business plan focusing on your experience, the industry in which you're going to participate, and a proper financial forecast that ' cash flows ' in a positive nature in order to retire the debt satisfactorily .

Other things you should focus on in your plan are customer profiles, competition analysis, etc.

Having a formal or informal network of business advisors, lawyer, accountant, and banker certainly helps.

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who has the ability to turn your Canadian franchising dream into a success franchise loan resolution for a new or existing franchise.








Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :

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

Time To Unleash An ABL Asset Line Of Credit Revolver Loan Insider Your Company? A Revolver Loan Works

What’s The Difference And Focus in ABL Financing?


Information on why an ABL revolver loan is a powerful tool in Canadian business . Finance Your Firm Via An Asset Line Of Credit



Don't you just hate them? We're talking about the ‘cash flow crowd’. That's why an ABL revolver loan via asset line of credit finance is quite simply, a way to beat that crowd at their own game.

However, all sarcasm aside, the concept of cash flow and servicing cash flow is a key driver in business credit. That's where the ABL line of credit goes against the grain. This time worn method of business revolving credit is a great solution for asset intensive businesses that cannot always meet those stringent cash flow requirements.

As we said, its all about assets, so if your firm has them, specifically A/R, inventory and equipment you're in a great position to qualify for this method of Canadian business financing for your credit line. It's been around a very long time, but quite frankly simply got more popular in recent years.

And just because it’s an alternative source of finance absolutely does not mean its anything approaching a ' lender of last resort '. The proof? Some of the largest and most successful corporations in Canada utilize it! And we’re talking public companies and private.

So why do business owners and their finance managers gravitate to an ABL revolver loan. It can be summed up in one word, flexibility. Can they be cheaper also, when it comes to financing rates? The reality for the majority of businesses is that it will be more expensive, but the trade off here is simply more liquidity. But for the record, there are numerous circumstances when ABL pricing meets or exceed that of the Canadian chartered banks. It's basically a question of overall credit quality and deal size.

Many ABL type deals are used by investors and business owners to complete a buyout transaction. That can be in the context of an acquisition or a change in overall ownership.

We do remind clients though that although the focus isn’t always on cash flow as with a bank line of credit focus the reality is that there is more monitoring and reporting when it comes to an asset line of credit finance facility . That might also include some appraisals prior to setting up the facility.

The positive trade off to that is simply that you have access to more liquidity - with receivables typically margined at 90% and inventory and equipment margins significantly exceeding Canadian chartered bank margins. The bottom line is that it’s your assets driving your access to liquidity, without being hampered by ratios or covenants.

Speak to a trusted, credible and experienced Canadian business financing advisor on why the ABL line of credit can unleash the power of liquidity for your Canadian business.






Stan Prokop - founder of 7 Park Avenue Financial –


http://www.7parkavenuefinancial.com


Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :

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

Financing A Business In Canada ? What Finance Company Or Solution Works Best?

Change Your Company’s Destiny With Solid Financing Strategies & Solutions


Information on financing a business in Canada. What solutions are available via a bank or finance company to solve the needs of Canadian firms in search of capital.



Financing a business in Canada. One of our favorite writers recently reviewed a U.S. report focusing on the ability of a company to finance its business in the U.S. . . . The report was portrayed as a current ' pulse ' of the market, including input from business owners and entrepreneurs.

That got us to thinking ... hey... this is Canada. Would that current ' pulse ' of the market be similar? Let's take a look and hopefully provide some insights into Canadian business financing.

A recurring theme in the U.S. report was actually the concept of ' vanishing finances. The average business owner, certainly in the SME (small to medium enterprise) market, like its U.S. counterpart in many ways still isn’t fully recovered from the 2008- 2009 world debacle. Canada, like the U.S. saw sources of financing change considerably. Unbelievably, even many rational sources of financing simply ... disappeared.

So how did U.S. business owners address the disappearance of funding sources for their business, and in Canada what changed also? Here's where it gets a big ugly ... as the majority of respondents indicated that they had to inject additional personal equity in their business, and even resort to business and personal credit cards to fund their firm.

We still meet many busines owners who rely to some degree, sometimes significant, on credit cards to finance their business. This sometimes is a hugely double edged sword, as they do get some additional capital, but it’s sometimes at the expense of their good personal credit rating. Bottom line, if you can, it’s important to separate your business and personal life when it comes to finances.

Business lines of credit are the life blood of most firms, whether you're a small, medium or large when it comes to revenues. In the U.S. on 30% of businesses in the SME sector reported they had access or could qualify for a line of credit from a bank or finance company. One alternative that was stated as solution was the use of home equity lines of credit for busines finance. Again, it works, but not a preferred strategy!

When times are tough who can we look to from help? ' I'M FROM THE GOVERNMENT AND I AM HERE TO HELP ' As skeptical as we are of that statement the reality is that thousands of firms in Canada, ( and probably hundreds of thousands in the U.S. ) utilize the government loan program , In Canada we call it the ' SBL ' , in the U.S. its the SBA .

In Canada the cap for revenues on your firm vis a vis its ability to access the SBL is 5 Million dollars. That covers a lot of ground in Canada, and you can borrow up to 350,000$ for much needed financing for equipment, leasehold improvements, computers, software, etc. We encourage every SME business to check out the program.

So, is the situation all that bleak? We suppose it’s the glass half empty/half full saying... we'll let you decide. But you clearly can empower your company by checking out great solutions when it comes to financing a business in Canada. They include bank credit lines, receivables finance, equipment leasing, asset based lending, tax credit monetization, securitization of receivables, and cash flow working capital loans .

Whether from a bank or commercial finance company you just might find that behind those doors are some solid solutions you perhaps didn’t even know existed.

Speak to a trusted, credible and experienced Canadian business financing advisor on sources of finance 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/financing_a_business_in_canada_finance_company.html

Business Leasing & Equipment Finance Canada – Do You Know These 4 Secrets Of Lease Financing ?

Don’t Overlook These Lease Finance Benefits !


Information on business leasing in Canada . How to maximize the benefits of equipment finance via lease financing tactics to finance new or used assets .



Business leasing and equipment finance in Canada. Does your firm take advantage of these 4 secrets of lease financing in Canada, thereby maximizing the benefits of an already proven business finance tool used by 80% of North American ( that’s Canada too by the way !) business.

Let's focus on some of the advantages of leasing, thereby giving you some great reasons to consider entering into a lease when your firm acquires assets. Yes there are other ways to acquire assets - they include term loans, or putting in additional equity into your company but time and time again Canadian business owners and financial managers come to realize that lease finance is competitive and offers some of these ' special ' advantages that arent available elsewhere .

So, is lease financing the right decision? Let's examine secret # 1 - which simply speaking is your ability to get 100% financing on. And even if a down payment is in fact required 90% financing, as an example surely isn’t a bad thing. Oh and by the way, the additional costs that you might have to incur in acquiring an asset, i.e. delivery, installation, training, maintenance, etc. can easily be bundled into your transaction. If you went the term loan route many of these softer costs couldn’t be financed and therefore drain your cash flow.

Secret # 2 in business leasing. It's your ability to be a ' hedger '. A hedger? We mean of course a hedger in terms of an inflationary environment. As you make your payments over time the lease company that receives your cash of course recognizes that’s its worth less over time whenever there is positive inflation in the economy. They lose, and you win. Naturally this is probably not the greatest economic decision driver when you acquire and asset but its one more positive in the lease advantage scenario. And since lease terms are available anywhere from 2- 7 years typically you keep on being the winner.

Secret # 3- In your kingdom of business, cash flow is king. We all know that .The drain on cash flow in your company can be offset by utilizing lease financing. Firms with good credit ratings can get great rates these days, and even firms that have credit challenges are able to take care advantage of ' structured ' transactions, allowing them to acquire the asset under perhaps a shorter term or higher monthly payment.

Secret # 4- The lease financing transaction typically is complimentary to your overall banking and debt strategy. Banks or other institutions might have what we call ' negative covenants ' about how you run you business from a financial ration perspective. Leasing can often address your other loan covenants with lenders in a positive manner, but we do caution business owners and financial managers to review their covenants prior to entering into a lease.

Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in maximizing asset finance 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 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :


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

Receivable Finance & Cash Flow Factoring – 8 Questions 8 Answers On Receivables Finance Solutions In Canada

Your Questions Finally Answered On A/R Finance In Canada

Information on receivable finance and cash flow factoring in Canada . Answers to questions you need to ask before entering into the right receivables finance strategy .


Receivable finance in Canada. Boy do we get a lot of questions around this single method of financing receivables in Canada. Another term for the same subject is of course ' cash flow factoring’

So let’s take some of those often asked questions, 8 in total and... You guessed it, answer them!

Question # 1- Does a Canadian start up or early stage company utilize receivable finance? The answer is a resounding yes. The reality is of course that same business is often ineligible to obtain most other methods of Canadian business financing by the very nature of the start up. Since cash flow factoring focuses on the asset of receivables it makes sense it’s a good solution for a start up firm

Question # 2 - Can you set this type of facility up on your own without the assistance of anyone? Again, it’s a resounding yes. However, due to the fragmented and generally misunderstood issues around the subject it would make often more sense to use a Canadian business financing advisor who is aware of the issues, pitfalls, and pricing around A/R finance. Another point is that this method of financing is clearly not all about price after you get into how it works daily mechanics, etc.

Questions # 3 - another great one. Does all of your A/R investment need to be financed at all times? The answer is no... This is clearly one method of financing your business that is essentially ‘pay for only what you use '. Although some facilities might require a minimum usage essentially it’s your call as to what A/R and when to finance.

Question # 4 - Are there contacts involved with respect to committing to such a facility. The answer is that certain facilities require no contract how most cash flow factoring firms do often require a commitment from your firm. That can often be negotiated and allow you to have some flexibility built into it. The reality here though is that you typically will use this type of finance for a year anyway as you move towards a more traditional bank borrowing.

Question # 5 - Does a firm have to have good financials to qualify. In general the answer is no. Unless your firm is in a death spiral past financial challenges your firm faces do not preclude you from obtaining receivable finance. As a rule if your sales are stable or growing you're an excellent candidate for cash flow factoring.

Question # 6 - Who exactly provides cash flow finance in Canada. For a starter it’s not the banks when it comes to invoice financing. There are firms that are very small in nature, some are subsidiaries of U.S. firms, and some are substantial on their own, and Canadian owned. Pricing, qualification, deal size, etc all vary so here again it makes sense to work with someone who is knowledgeable about industry players, their offering, and reputation. Again, beware of the ' low price ' carrot - it’s often, if not always, what it seems.

Question # 7- Pricing. Ah, we though you would never ask. As a general rule factoring in Canada is sin the 2% range, sometimes more, sometimes less. The industry views this monthly rate as a discount, i.e. it buys your A/R at a 2% discount to its value. You can offset this cost by purchasing smarter, taking discounts from suppliers, and selling and collecting more, thereby increasing your profits. And don’t forget, you're simply not carrying receivables for 60 or 90 days anymore, but it makes total sense still to stay on top of your collections to reduce costs to finance.

Last question, Question # 8 - what is the actual difference between A/R finance and a bank facility. As a joke we could say ' the ability to get one ‘! But the reality is that we've partially answered that one already. Receivables finance is the purchase of your sales and receivables as you make that sale and invoice. Banking is simply offering financing that takes your receivables as a back up collateral. That's a simplistic answer, but it’s a basic one.

Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in your receivable finance and cash flow factoring 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 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :


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