Canadian Film Tax Credit Financing. You Need To Know This About BC & Ontario Credits Finance

THE INSIDE STORY ON TAX CREDIT FINANCE – CANADIAN STYLE

Information on Canadian film tax credit financing, How BC, ONTARIO and Animation Credits Are Financeable !


Canadian film tax credit financing. Clearly there is no secret path to financing a film, TV or animation project anywhere... Canada included... Ontario... BC... where ever. But one sure fire method of successfully completing a project is in fact your ability to monetize the tax credit.

From some of the sagas' and stories we hear the financing of a project in any of the above mentioned genres could well qualify for a script of their own!

Producers and owners of successful projects already know that there are some key elements to the financing of any project. In a way they are not dissimilar to the financing of any business...your owner equity. Debt of some form, and in our case also, the monetization of a tax credit.

Financing of entertainment projects in our 3 genres could not be any ' hotter ‘than in the current Canadian time frame of 2012. Also, for the first time one of Canada's provinces seems to be opting out of the tax credits - that's the province of Saskatchewan.

If properly structured and qualified your Canadian film tax credit financing in provinces such as Ontario, BC (British Columbia) and Quebec and cover anywhere from 30-50 per cent of your entire project budget. When revenue, distribution, pre-sales and other targets are a challenge the tax credit, when properly submitted and eligible becomes the more straightforward method of financing projects.

Tax credits are often referred to as ' soft dollars'. The one thing we've always found interesting about tax credit finance is that they don't really rely on the overall success of the project from a public acceptance point of view. When applying for and financing the film/TV/animation tax credit it’s very simply about meeting the technical criteria of the credit program itself.

It's therefore all about ' the spend' and the quality of the spend. And once you've qualified you then are in a position to monetize the tax credit - it becomes the collateral for extra cash flow. While in most cases that cash flow and working capital helps you on the current project it could of course be used for your next (hopefully successful!) production.

Tax credits are typically financed at a ' discount ' and a general norm might be in the 70% range - of course this varies per quality of the project and the experience and stability of the ownership team.

For successful eligibility and financing of Canadian film tax credit financing you require the services of a qualified tax credit accountant; that being a bit of a niche area of accounting. And with respect to the financing you need to be able to demonstrate that the credit can properly be assigned and that there are clear chains of title around your project.

Do you have to finance your film, TV and animation / transmedia tax credits? Absolutely, positively not. You can simply use the non repayable funds for any general corporate purpose. But if you, as a producer are challenged by successful project financing then the ONTARIO, BC AND QUEBEC tax credits can be a solid part of your overall financing plan.

Speak to a trusted, credible and experienced Canadian business financing advisor today on how you can successfully obtain.. and if you choose monetize and cash flow that same credit.

7 PARK AVENUE FINANCIAL
CANADIAN FILM TAX CREDIT FINANCING



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_film_tax_credit_financing_bc_ontario_2.html

Harsh Truth, Cost, and Benefits Of AR Accounts Receivable Finance In Canada . Factoring & Reality 101!

Explored Every Cash Flow Financing Mechanism?

Information on AR accounts receivable finance in Canada. Why factoring works, what it costs, and what to look out for in a good facility



The truth. We don't think we've met a business person, man or woman, that doesn't appreciate the real truth when it comes to business. So when it comes to AR Accounts Receivable Finance, aka ‘factoring’ let’s just clear up a few things if you don't mind!

We think if you lined up ten business people and asked them who they believe they could rely on when it comes to business lending most would say ' the bank ' That's been Canada's choice for decades .. that’s for sure.

But does everyone company have access to cash flow and growth financing when it comes to our beloved chartered banks. Here's the harsh reality - they don't.

So is there an option? There is. Its accounts receivable financing, which has become attractive to many firms when they look at some key advantages. Is factoring the only solution? Definitely not, firms can also utilize lease financing, sale leasebacks, and other debt mechanisms.

Debt mechanisms ... optimal? Certainly not all the time, and that’s why AR Accounts receivable Finance is a non - debt solution. It's just a monetization of your key asset, the receivables.

So why doesn't everyone utilize this form of financing. It certainly appeals to Canadian business owners who can't supply the type of security that a bank requires.

What then are some key reasons that businesses avoid factoring? We think we can summarize them quite clearly - they include a general lack of awareness of what the financing is and how it works.

In certain cases there appears to be an ' image ' problem. Why then do some of Canada's largest and most successful firms utilize this finance mechanism? We'll never figure out that one!

The cost of factor finance always comes up. In Canada a typical financing facility would be in the 1.5 -2% range based on a collection period of thirty days.

What Canadian business owners don't realize though is that cost can be offset in a solid handful of manners - they include your ability to purchase smarter, take discounts with suppliers, and take on new business and contracts you never could even consider in the past. We can honestly say that we're met some clients who have totally eliminated the entire cost of financing when they utilized factoring.

Some other harsh reality? If your sales are going down instead of going up factoring won't necessarily work, because your borrowing asset base is declining... not growing. Also, a very small handful of industries, such as construction pose more difficult challenges when it comes to AR finance utilization.

But the majority of Canadian businesses can actually do the following:

- access immediate short term funding

- improve cash flow

- utilize a pay for what you only use method of business financing

So, our bottom line? Take some time to investigate a bit more thoroughly, without some of those biases this method of business finance. Speak to a rusted, credible and experienced business financing advisor today.

7 PARK AVENUE FINANCIAL
CANADIAN RECEIVABLE FINANCE EXPERTISE




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/ar_accounts_receivable_finance_factoring.html

Yes You Can ! SRED R&D Tax Credit Financing And Film And Television Production Finance In Canada

TAX CREDIT FINANCING – CANADIAN STYLE


Information on sred financing via the R&D Tax Credit Program as well as film and television production credits .


Two. Count 'em. Two, that’s essentially the two types of tax credit that can be financed in Canada, We're talking about SRED , of course, and hopefully we can be forgiven for lumping together film, television , and animation /transmedia credits into one category .

Let's do a quick recap of these two tax credits, with the focus on the ' benefits ‘and ' how to ' relative to the finance of these two non repayable credit government programs.

Sred first. We guess if Shakespeare were around today he might well analogize his play ' MUCH ADO ABOUT NOTHING ' as his succinct summary of all the brouhaha around the federal SR&ED program. For quite awhile there had been rumors, discussion, and innuendo (it almost sounds like a plot or storyline!) around changes to the program.

The SR&ED, aka ' SRED' program is of course the governments program to support research and development in Canada. For public companies that translates into some major tax deduction benefits; but for the private companies in Canada we're talking about Billions ... That's billions with a B ... in non repayable funds that are used by thousands of firms to grow and operate their businesses.

The heart of the matter seemed to be the actual consultants themselves, and when the dust settled it's these actual consultants and firms that prepare the claims that one could say were somewhat uncomfortably under the microscope.

That's an even more relative comment when it comes to financing you SRED claim, because typical SR&ED loans, when financed properly, focus a fair bit on the quality of the preparation of the claim, and the credentials of the consultant or firm that did the claim in conjunction with your year end tax filing.

SRED Bridge loans are a solid way for firms to immediately recapture valuable cash flow and working capital. A financing is typically structured as a bridge loan, with no payments being made until the claim is verified and or audited by the government folks. SRED finance is typically structured on a 70% loan to value basis, and you receive the other 30% of your claim when the claim is approved and monetized; less of course financing costs.

Whether your firm is an established SME firm, or even a start up the cash flow and working capital you can generate from your claim is, shall we say valuable!

On to something more exciting? We guess that puts us into movies, TV and transmedia / animation tax credit financing. Books are written, and stories are legendary, around how challenging it is to finance media projects.

A the end of the day the combination of owner equity, debt, and the film tax credit is a very recognizable way to finance projects, worldwide for that matter.

Similar to our comments on SRED, the discussion point in the government and press seems to be ' who benefits ' when the government in Canada provides these generous film, television and animation tax credit incentives? The answer - You won't catch us weighing in on that one! We'll leave it to the pundits to address that issue, whether is co - productions, or 100% Canadian projects.

Many projects, as we have alluded to have Hollywood or other ownership, but the federal government, through the ' FILM / VIDEO PRODUCTION TAX CREDIT ' provides generous non repayable funds for salaries, wages, and other costs associated with making a project complete.

And, back to heart of today’s matter, your film tax credit in Canada is financeable. If you have a legitimate project, as well as your debt and equity lined up you are in a position to cash flow your film tax credit. Similar to SRED it’s not uncommon for a completed tax credit to be financed in the 70% loan to value range - with the same financing mechanisms applying. The tax credit is the key collateral, and no payments are made during the duration of the tax credit until the matter is finalized; i.e. the cheque received from the government. Billions are spent on these productions in Canada, primarily in Toronto, Montreal and Vancouver, but elsewhere also.

So as esoteric as it may seem the reality is that your project is at the end of the day a commodity, and that commodity can be financed to assist in the completion of your current project or perhaps to start the next one. Over the years HOLLYWOOD AND VINE seems to look a lot like YONGE AND DUNDAS, and the film tax credit program, along with its financing, is key to that.

Bottom line, whether you have a SRED TAX CREDIT, of a FILM, TV, OR ANIMATION credit financing is available. Speak to a trusted, credible and experienced Canadian business financing advisor on financing your claim today.

7 PARK AVENUE FINANCIAL
SRED AND FILM TAX CREDIT FINANCING



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/tax_credit_sred_financing_film_television.html

Capital Or Operating Lease . Your Choice ! The Why And When Of Leasing Finance When Your Company Leases Assets

Canadian Lease Finance Solutions – Why Not Now?

Information on capital and operating lease solutions . Canadian leasing finance choices when it comes to your asset leases .


Leasing finance in Canada. Canadian business owners who are seeking rates, terms and structures for asses that generate (hopefully) revenues have a number of choices, one of which is the type of leases they enter into. The Operating and Capital lease is in fact the main choice or decision point.

The ability to free working capital and not deploy it into the purchase of fixed assets is in fact a key benefit of leasing in Canada. And as most business owners hopefully know, you also have the ability to finance used equipment when it makes sense.

The concept of matching is very important when it comes to leasing finance in Canada. Your firm has the ability to use the asset to operate as well as generate profits, but cash outflows, i.e. the monthly payment are made over a pre-determined amount of time.

Getting back to leasing finance choices your ability to return, upgrade, or extend a lease is in fact the reason why most business owners choose an OPERATING LEASE scenario.

Does every business owner / financial manager know the benefits of leases? We're never 100% sure when we talk to clients, but the main benefits are 100% financing of the asset, although some firms we point out may be required on occasion to make a down payment of security deposit. Your overall credit quality will determine advance payment requirements, as well as your rate.

Most clients who are concerned about the ' rate ' in the transaction are in fact surprised when we tell them the actual rate or pricing is in fact much more in control of the lessee - Thats you !.. when you understand your firm’s credit strength and can demonstrate it .That's because leasing in the current 2012 Canadian business environment is in fact highly competitive.

Using the services, as an example, of an advisor you have the ability to access the right type of leases when it comes to price, term, etc.

Cash flow management is critical today to day business in Canada. Knowing your payments are fixed allows you to manage cash flow and be proactive when it comes to sourcing assets that make sense for your firm.

The world of tax, accounting and balance sheet implications can be somewhat ' murky ' when it comes to an operating or capital lease solution. Again, that advisor, or even your external accountant can in fact help you in that regard, and that advice is usually free.

Technology, as no other asset class is, makes a great case for leasing. Specific needs, obsolescence, off balance sheet financing, and reduced leasing costs play a key role in any aspect of tech finance.

Speak to a trusted, credible and experienced Canadian business financing advisor when it comes to choosing an asset finance strategy that makes sense for your firm.

7 PARK AVENUE FINANCIAL
CANADIAN LEASE FINANCE EXPERTISE



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/operating_capital_lease_leasing_finance_leases.html

SBL Financing . Stop Worrying And Learn To Love The Canadian Government Small Business Loan

Canadian Business Finance solutions via SBL loans


Information on SBL government small business loan financing in Canada . Benefits and Overview of program requirements



The Government small business loan in Canada - AKA ' SBL FINANCING. What a great way to stop worrying about how you'll finance some of those key business needs when you're a start up or SME sector company in Canada .

Worrying about business financing surely ranks right up there when it comes to business owners and financial managers looking for the right type of finance for their firms.

The solution in fact might be right in front of you, via the Federal government (INDUSTRY CANADA) small business loan program. You're able to access financing up to 500k if you can demonstrate you qualify, have the right documentation, and know how to fast track an approval without some of the frustration experienced by many Canadian business owners and financial managers.

Is the SBL loan a good option for your business? We'll let you decide but we're pretty sure we think you'll find that when credit is tight and other forms of finance are unattainable you may have just found the perfect solution. It's simply a case of knowing the rules, and as we've said in the past, creating a short roadmap to business finance success.

So when does some of that ' worrying ' come in? It usually happens when you don’t have some key knowledge or professional assistance in the area of SBL financing. Having an advisor assist you can play an important role in your overall business financing success. It simply that role that assists you in ensuring you qualify and can access for the Government small business loan in Canada. And if you are working with the right advisor services will only have to be paid for on Success; talk about a win / win situation!

So how can you validate who is or is not an expert in SBL finance. You want to ensure you are working with a seasoned advisor who has raised funding for business and can demonstrate that track record. So validate their credentials, experience and save yourself a lot of time and definitely a bit of money. You actually are fully entitled to ask the advisor for references from the SBL lending community.

So what then is the value of such an advisor? First of all it's time saving, but secondly its more of a guarantee of success based on the advisors knowledge of what makes an application successful.

In our experience there is a lot of myth or misinformation around the program. Here's the truth around some of those myths and misinformed issues:

Everyone business person or company legally allowed to borrow money in Canada is theoretically eligible for the program. You do have to have reasonable net worth, credit status and experience in business.

All business sizes are not eligible for the program; in fact you have to have projected or real revenues under 5 Million dollars.

Real estate is in fact eligible for the program max, it 500k. Other assets such as equipment and leaseholds top out at 350,000.00$ max under the program.

So, a bottom line today? It's simply ' stop worrying' and spend some time to get the real ' skinny ' on SBL financing under the government small business loan in Canada . Speak to a trusted, credible and experienced Canadian business financing advisor on making the program work for you.

7 PARK AVENUE FINANCIAL
CANADIAN SBL LOAN FINANCE EXPERTISE






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_financing_government_small_business_loan.html

Looking For Business Purchase Financing In Canada ?. Buying An Existing Company? Finance and Buy Tips .

Benefits And Tips On Canadian Acquisition Financing

Information on business purchase financing in Canada . Buying an existing company ? Tips on how to finance and buy a business.


Business purchase financing. When you or your firm has made the decision about buying an existing business in Canada you need some solid information around how to finance your transaction.

Why buy a business in the first place. Many clients we speak to are fortunate enough to have what we might call an ' inside track' on a company or business that would accept a favorable offer based on current situation.

The obvious benefits around our ability to buy a business that is established already is simply the fact that there’s a revenue stream, a client base, and assets and location that are already in place . That certainly beats a start up scenario and all the work and challenges that go with that.

Also, business purchase financing also has the ability to structure a financing deal with the owner remaining in a subordinate position via a VTB, i.e. a vendor take back. Naturally the skills and expertise of the owner and current management team might also have a significant value to your own efforts to grow the business, at lease for an interim period.

Is it easier to arrange funding for an established business versus an existing business? There's never a clear answer to that one, but many people do believe your chances of success are much higher when you buy an established concern; and if you're a lender looking at a transaction such as this it also means you're more positive than negative, wouldn't one think?

Naturally cash flows and profits of an existing business are positive in the context that you can demonstrate immediate cash flows and profits to repay loan financing. In some cases you might be purchasing a franchise and you will need the support of the franchisor to make that acquisition. Once again the ' branding ' and ' reputation' around that franchise is clearly positive as opposed to negative.

Valuation is a challenge when it comes to both purchase and financing when buying a business. A higher valuation will mean you might have to finance a goodwill component, which is difficult in an asset based transaction. On the other side of the coin we meet clients who are interested in buying a distressed business that has been trending down - valuation is cheap and they believe they can engineer a turnaround. Easier said than done sometimes.

Valuations on the business can be supplied by the owner, or you can arrange your own through a qualified advisor or appraiser. That's particularly important when it comes to an asset based business.

Key issues to consider in the valuation and financing of the business are quality of the financials, revenue trends, cash flow generation - i.e. does the business use cash or throw off cash? ( The latter is better!) You or your accountant and advisor need to ' normalize ' the financials, making the assumptions on how the business costs will look after you take ownership.

In Canada businesses can be financed with term loans, asset based lending, franchise financing if applicable, and even the Government Small Business Loan if its a smaller transaction under 350K.

Speak to a trusted, credible and experienced Canadian business financing advisor on how to properly structure and complete buying a business in Canada.

7 PARK AVENUE FINANCIAL
CANADIAN BUSINESS PURCHASE FINANCING EXPERTISE



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_purchase_financing_buying_existing_buy.html

Do You Like Easy ? Leasing Company Solutions In Canada For Your Capital Lease Asset And Operating Needs

Who Doesn’t Want Easy When It Comes To Asset Finance !


Information on leasing in Canada . Why Canadian business chooses the benefits of capital and operating structures for lease assets in Canada .



Easy. Leasing. What business owner or financial manager doesnt like easy , and when it comes to capital or operating lease assets that's exactly what is happening these days.

It couldn’t be any more basic; it’s you, your lessor, and the use or ownership of an asset. The majority of Canadian businesses prefer what's known as a capital lease, aka ' lease to own ' , The industry sometimes makes this a bit confusing as other terms for this transaction include ' financial lease ' , ' full payout lease' and ' finance lease '.

The bottom line, in that type of transaction you're simply signifying your choice of taking ownership at the end of the leasing term, of the asset or assets in question.

Why then do thousands of businesses in Canada, in fact almost 80%, so it would appear we're probably in the millions, choose the lease of assets as their Canadian business financing mechanism of choice .?

When you think of it, it really comes down to 4 basic reasons. First of all there is the necessity to acquire assets to run their business that they might otherwise not be able to purchase outright. Or perhaps they don't qualify for a bank term loan,

The other reason is termed ' risk shifting ' as your lessor shares the risk of ownership during the lease term.

Thirdly we have tax and accounting benefits that accrue to the Canadian business owner.

The fourth reason. IT'S EASY!!!! ... and convenient.

Almost all asset classes can be financed in Canada , but a great example of 'Easy 'when it comes to financing your business assets is computers , software and tech assets in general.

What business owner today wouldn’t be reluctant to lay out huge sums of cash when it comes to both cost as well as the constantly changing technologies of the tech world?

In fact that very subject, technology asset finance is why thousands of firms opt for the other type of lease available in Canada. That’s the ' OPERATING LEASE ‘and it’s simply a lease that can be renewed, extended, or upgraded during the lease term. That ability to make lower lease payments for only using and then returning the asset has a lot of appeal to chief information office in medium size or larger corporations.


Clearly there is an element of ' pride of ownership ' when it comes to fixed assets for your company. But it’s a changing world, and if you can achieve use and profits of the asset in an economical fashion its clear that leasing is probably for you.

Various techniques can be used when it comes to figuring out the ' lease vs. buy ' conundrum .Just make sure you use an apples to apples comparison tool, and that you understand your cost of capital and the real interest rate you are being offered.

So, ‘EASY’ when it comes to lease assets. You bet. Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your capital and operating leasing needs.

7 PARK AVENUE FINANCIAL
CANADIAN LEASING AND ASSET FINANCE EXPERTISE



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/leasing_lease_assets_capital_operating.html