Tax Credit Financing In Canada . Authenticated SR&ED ( SRED ) And Film Credit Finance

Lights Camera Action Cut! What? You Can Finance Canadian SR&ED & Film Tax Credits? !





Tax credit financing in Canada. Whether its SRED (SR&ED) credits or film, animation or television credits the financing of these generous credits in Canada provides valuable working capital and cash flow financing for companies or projects. We're focusing on the most financeable types of tax credits - ' FILM ' and ' SRED". Let's dig in.

Let’s first take a look at the R&D (sred) credit program as it pertains to financing. While no business owner or financial manager would disagree that an investment in research is important to competitive growth in any company they're the first to agree that it can be an expensive and cash consuming investment in your firm’s future.

And while Canadian business financing of any type is a challenge, spending money on R&D simply accentuates that challenge. And since your firm’s research is rarely capitalized on your balance sheet (and if it is your lenders discount the asset!) obtaining financing for your SRED claims simply makes total sense!

Financing your SR&ED claims could not be simpler. And the good news that we continue to share with clients is that more innovative products are coming on board all the time - including what we could term SRED LINES OF CREDIT, also sometimes called Accrual Sred Finance.

Let's briefly examine the simple mechanics of financing your SR&ED tax credit. After your claim is prepared (typically by your own firm or a SRED ' Consultant’) it is filed along with your corporate tax return. The minute that happens it is immediately eligible for financing. Typically banks in Canada do not finance these credits directly, although they might for a well heeled firm that has a strong bank relationship in place.

Non bank SRED FINANCING works as follows - your claim is financed to a maximum of 70% loan to value. Simply speaking on a 200k claim you are eligible for 140k of immediate funding. The financing of your tax credit is best described as a bridge loan - no payments are made for the duration of the claim, and when it’s approved by the government you obtain the balance of the funds, less financing costs that accrued during the loan period. Simple as that.

As we noted, more innovative sred credit lines, or sred accrual finance allow you to receive funding as you spend prior to your final filing of your claim . Talk about ongoing working capital and cash flow that all of a sudden make that investment in research much more palatable to your firm.

Remember also that financing tax credits in Canada is a solid alternative to additional equity or taking on more debt.

We're thinking that your Canadian business doesnt make a lot of movies, TV shows, or animation projects? However, if you're a producer or owner of projects in the media and entertainment industry tax credit financing is of course for yourself. It’s our 2nd major category of tax credits financed, in addition to those SRED credits.

In Canada, aka ' HOLLYWOOD NORTH ‘, there's intense competition among the provinces to finance film, animation and TV tax credits. Although it’s a highly specialized form of tax credit it only takes a legitimate project, a good tax credit accountant (they prepare and itemize your claim) and you're able to access the same level of funding we've already spoken of, in a similar manner.

Provinces such as British Columbia, Ontario and Quebec garner most of the tax credit action, and although there are some differences in amounts qualifying suffice to say that these media credits are very generous, and very financeable. Canada as a country recognizes that providing these credits generates billions in income and significant employment in the industry.

Foreign producers, primarily U.S. based, can also access these credits for productions done in Canada as long as they qualify under a simply point system for what is known as co-ventures. Points accrue for having a Canadian producer, how much you spend, etc.

Our bottom line? Pretty obvious. Financing tax credits makes sense and helps cash flow companies and projects. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your tax credit 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 10 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-financing-film-sred-credits.html





CONTACT:
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653
Email = sprokop@7parkavenuefinancial.com















Stan Prokop

Government Business Loan Financing in Canada . Not Getting Your Questions Answered ?

Heard Or Worried About That Secret Government Stuff ? The Best Kept Secret ?



OVERVIEW – Information on on a best kept Canadian finance secret, the government business loan . Let this type of financing start your start up or expand your existing business


Government Business Loan . In Canada? Yes, Virginia, it really does exist and anywhere between 7000 - 8000 Canadian companies a year take advantage of it. So no , it isn’t really the ' secret government stuff ' you've been reading about in the papers these days - i.e. phone and internet privacy invasion, etc. It's simply a solid way to put a start up or growing business in the SME sector in Canada on great financial footing. Let's dig in.

So why don’t the majority of business owners and managers know about this program, denoting our ' Secret " status? We think it’s because they think that anything to do with the government involves complex qualifications, too much documentation, and difficulty in approvals. Our view - NOT THE CASE!

Government business loans, commonly known as ' SBL’s, are a great option when financing seems difficult. The trick - understanding that you're never; we repeat ' never ' dealing with the government. You simply have to locate a Canadian chartered banker who knows and understand the program. We meet many clients who have suffered through finding that one special banker that feels very comfortable with the program. And all they had to do was ask!

So how do you take the guesswork out of govt business loans? It's simpler than you think. You need to understand how the loan works, what options are available re structure and type of assets financed ( only THREE types of assets can be financed - equipment and leasehold improvements and real estate ) and why this financing options matches even the financing that much larger corporations can't achieve . (No repayment penalty, minimal owner guarantees, etc)

SBL loans in Canada incent Canadian banks to lend to your firm. Why? The government guarantees a huge portion of the loan if it is properly administered and documented. So ' private sector ' Canadian commercial chartered banks are now in a position to... you guessed it... LEND!

As stated earlier, only 3 asset categories are financeable under the program. They are:

Equipment
Leaseholds
Real Estate - rarely used for this program - but it's available

Contrary to popular belief (or wishful thinking?!) these are not cash or working capital loans, or equity financing.

So let's talk about eligibility, repayment and structure, and, most importantly, the approval process.

You're eligible for this program if your company, proprietorship, or partnership is legally allowed to borrow in Canada - i.e. owners Cdn citizens, or landed immigrant status. You also must have a reasonable credit history personally as owner, which is in fact a criteria for almost all business borrowing in Canada. You also must have a premises lease that is consistent with the term of the loan you are requesting.

The basics on structure and repayment? Easy. 5-7 year terms, no repayment penalty, rates at 3% over prime, and 25% owner PG. (Personal Guarantee)

Finally, the approval process. Not what you think. A simple business plan or exec summary, a cash flow forecast, background info on owners, decent credit history, some related business/mgmt experience.

We're sure there are a lot of ' government secrets' these days. But the best kept one is one you should know about - Government business loan financing that's used by thousands of firms just like yours. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can clear up those questions in short order.



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 10 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 :


7 Park Avenue Financial = Government Small Business Loans Expertise




CONTACT:
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
















Stan Prokop

Contract Payment Financing . Understanding The Science Of Contracts Finance In Canada

Shocking News Sales Does Not Equal Cash !


OVERVIEW – .Information on contact payment financing in Canada . How to address contracts finance in terms of needs and mechanisms




Contract payment financing in Canada . Here's a shocker for you (not!) Generating sales revenue does not equal cash! And if you're in the contracts finance business there's an even longer lag than usual. Can this be addressed? Yes, in a number of manners, both internally at your firm, and externally through proper financing. Let's dig in.

If you're fortunate enough to be in an ' all cash ' business your investment requirement in accounts receivable is... Nil. Businesses selling on standard commercial credit terms typically have 30 days terms, and receivables tend to be collected usually within 30-60 days. Businesses selling under contracts with clients find themselves in a unique position; they are required to pay for materials, wages, and other goods and services while waiting for payment under the terms of their longer contracts with clients.

If proper contracts and contract financing is not put in place those businesses are challenged to create additional revenues, let alone maintain their commitments to suppliers, banks and commercial lenders.

Businesses that have proper contracts in place with reputable clients are actually in a better position than they might think. The trick is to ensure that your lender understands the nature of your payment structure and that your payment rights are properly assigned in order that they can be financed.

Monetizing your contracts, if done successfully allows you to finance contracts properly and invest in more projects. The key to proper financing of your contracts is not necessarily your balance sheet - rather it’s your credibility and expertise to complete your contracts, bill them properly,

Typical reasons for contract/PO financing are as follows:

Your traditional lender/bank is unable to accommodate financing of this type

Suppliers insist on some level of pre payment

Large contracts are being turned down by your company due simply to lack of financing

Additional debt and equity financing are either not available or not desirable

Your firm’s invoices to your clients can be monetized directly into cash in one of two ways. They can be cash flowed with immediate funding via an asset based line of credit, or alternatively, suppliers can be paid directly via a PO FINANCE/SUPPLY CHAIN facility.

The benefits of a properly structured CONTRACT FINANCE facility are key. They include:

Vendor and Supplier Satisfaction

Ability to take on significant revenue projects not previously considered
Pricing power via supplier discounts

Properly structured financing wont be prejudicial to the type of industry your firm is in. Unfortunately many firms find themselves out of favor when it comes to their search for traditional contract finance. That shouldn’t be the case if done properly. In some cases the easiest way to resolve contract funding is to simply have your client acknowledge that the work you have billed for has been performed/received. What could be easier than that?



By the way, in the technology industry many contracts can also be financed under recurring revenue streams your firm bills - that might be software as a service, long term service contracts, etc.

Bottom line, don’t let the inability to finance contracts hinder your sales growth and financial progress. Seek and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with contract payment financing solutions.



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 10 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 :

7 Park Avenue Financial = Contract Payment Financing In Canada






CONTACT:

7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653
Email = sprokop@7parkavenuefinancial.com











Stan Prokop

Asset Finance Is All About Turnover And Canadian Business Financing Solutions Geared Specifically To Your Firms Needs

A Surprising Way To Measure Your Business Financing Needs – The GANG OF FOUR!



Information on asset finance solutions in Canada and why Canadian business financing is complemented by solid understanding of turnover of assets



Asset finance . When it comes to Canadian business financing there some surprising simply , yet powerful , shall we call them ..' tricks' when the business owner or financial manager needs to measure current and future financing needs . And those ' tricks ‘? They’re really just simple tools to measure ASSET TURNOVER. Let's dig in.

Speed counts in a lot of aspects of business - not all the times, but often. So the speed at which you turn assets into cash will often ultimately dictate the type of finance your firms needs to make it to the goal line.

It's important though to look at the trends in those numbers over time, not just on any one day. Let's take inventory as an example. Yes of course you want to know how many times your inventory turns ( Sales / Cost of Sales ) - It's important, but wont on it's own dictate the over all health of your company.

The GANG OF FOUR, as we'll nickname them, dictates how you are using those assets. They are:

A/R
INVENTORY
FIXED ASSETS/EQUIPMENT
TOTAL ASSETS

Knowing your DSO, ' day’s sales outstanding “simply tells your company how long it takes to turn over your accounts. Because you are selling on credit you need financing to support the sales growth in your A/R levels. Companies can address receivable financing via:

Factoring (Traditional)

Confidential Receivables Finance

Commercial bank lines from Canadian chartered banks

Non bank asset based lines of credit that are individual or combos of A/R and inventory margining

When you do a good job of granting credit, and collecting A/R even more expensive alternative finance solutions such as factoring make strong sense. Many clients we meet are in the business of PROGRESS PAYMENTS. Here's where things get a bit tricky, but they don't have to be. If you're able to get a down payment that helps - many firms do that. And, guess what? Progress payments can be financed if you've got the right financing partner.

We've touched on inventory finance already a bit, so let’s look at Asset turnover in general. You use your non current assets to typically operate your company and generate revenues. This is particularly important if you are in a capital intensive business. We meet with many clients who are service based and have little need for asset finance. At the other end of the spectrum are companies who need to utilize:

EQUIPMENT FINANCE
SALE LEASEBACKS
BRIDGE LOANS
ASSET BASED LINES OF CREDIT THAT INCLUDE FIXED ASSETS

as methods of Canadian business financing.

As we have said there are numerous ways to measure how much financing you need, and what type of financing works best for your particular situation. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your capital 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 10 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 :



7 PARK AVENUE FINANCIAL = CANADIAN BUSINESS FINANCING AND ASSET FINANCE







7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653
Email = sprokop@7parkavenuefinancial.com

















Stan Prokop

Business Cash Flow Finance . Ready For The Unexpected Arrival Of Some Real World Financing Solutions

You Have The Right To Remain Silent On Business Financing .. But You Shouldn’t


OVERVIEW – Information on business cash flow finance in Canada . Integrate the cash is king philosophy into real world financing solutions




Business cash flow finance in Canada . When it comes to financing we are the first to admit (with some level of guilt) that the term ' cash flow is king ' is a tad... shall we say ' over used '.

But it's not a perfect world as we know, so simple spreadsheets and heavy duty analysis will not always deliver the financing you need. Real world solutions will, and we've got them. So let's dig in!

Not everyone is always going to agree with you, the business owner/ manager as to what cash flow financing solution is optimal for your firm. We think we simplify that a lot by talking with clients in terms of either asset monetization or debt financing.

Also, if your company has any level of financial distress, serious or otherwise some solutions are going to always be more readily available and meaningful and accessible than others. Typically here's where non bank solutions are going to work best. They include:

Sale leaseback strategies
Tax credit monetization
Non bank operation lines of credit (ABL’S)
Receivable and Inventory financing strategies
PO / Supply Chain finance

When you're capital constrained the challenges of growing a business seem even more severe. Even investing in R&D can seem like a really tough call at that point. One innovate solution to R&D investment and cash flow saving is by utilizing an ' A S P '. It's our acronym for a R&D Sred accrual line of credit - reimbursing you immediately for research expenses as you spend. Now that's innovative!

We're often asked if there is a difference between public company and private company cash flow solutions. Other than the disclosures required by firms that are public the solutions quite often are the same.

Asset acquisition and replacement is a big part of any finance challenge for businesses of all size. Whether you're constrained by cash flow, budgets, technology issues, etc the business owner/manager should always consider effect forms of lease financing for new or to be replaced assets. Don't forget also that used equipment can easily be financed these days, as the proliferation of things such as the internet allow lessors to easily determine market values of many types of assets, technology included .

So , in summary , yes you do have the ‘ right to remain silent ‘ about business financing possibilities revolving around growth, alternative forms of debt financing, and monetizing existing assets into business finance cash flow . A better choice? Seek out and speak to a
trusted, credible and experienced Canadian business financing advisor who can assist you with your financing needs .



Stan Prokop - founder of 7 Park Avenue Financial –



Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 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 :

7 PARK AVENUE FINANCIAL = BUSINESS CASH FLOW FINANCING SOLUTIONS







7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653

Email = sprokop@7parkavenuefinancial.com











Stan Prokop

The Commercial Equipment Finance Company In Canada. Asset Finance Should Not Be A Chore

Bringing You In On A ‘ Need To Know ‘ Basis For Equipment Leasing in Canada

What does the Canadian firm looking for asset financing need to know about the commercial equipment finance company solutions that are available




The Commercial equipment finance company in Canada. When it comes to asset financing we sometimes get the sense that some of our clients feel like it’s almost a big ' chore ' so to speak. Does it have to be? Absolutely not of course, and we're going to bring you in strictly on a ' need to know ' basis to hopefully make those asset acquisitions more successful.

While some businesses might think they need to be somewhat ' cash strapped ' before considering lease financing that is also not the case. The largest and most successful corporations in Canada, even our chartered banks utilize this method of asset acquisition.

No one would every accuse our banks of having difficulty to finance themselves; the reality ??? .... They simply see the benefits also ! These include tax advantages, ease of acquisition, ongoing replacement of technology, etc. All the same issues that your firm faces. (Just on a bigger scale!)

Relationships with vendors is often a key part of dealing with the commercial lease company in Canada. In many cases your suppliers or vendors might have preferred programs in place which pass finance savings on to you. And here's somewhat of a secret... (Don’t forget you're in on our ' need to know' basis!) quite often vendors and suppliers ' buy down ' your financing costs by ponying up a portion of the finance charges. They, including the captive finance companies in Canada want your business!

Many clients also view the credit approval and documentation issues surrounding leasing as another part of their ' chores '. While they are entitled to think that way the reality is that properly positioned financing applications can in most cases these days be approved in a matter of a day or two. (Large complex deals take a bit more time). Additionally, investing a bit of time in understanding and negotiation lease terms can save you thousands of dollars in areas such as end of term obligations, down payments, structuring, etc.

Two! Can you remember that number - its only 2 choices you can make in the type of lease you are entering? Focus simply on ' owning ' the asset, or ' using ' the asset. It's one or the other and we're referring to Capital leases (own) or Operating Leases (use).



Dealing with the right lease company is half the battle when it comes to asset financing for your firm. Your key ' need to knows' in this regards are issue such as:

Geographies they serve
Type of Assets they finance
Transaction limits - small, large, in between (The industry itself calls these small, mid and large ticket)
Do they finance technology? (Yes, software can be financed!)

If you want to eliminate the chores associated with financing your assets consider seeking and speaking to a trusted, credible and experienced Canadian business financing advisor who can help you navigate the asset financing challenge many firms face today.


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 10 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 :

7 PARK AVENUE FINANCIAL = COMMERCIAL EQUIPMENT FINANCE








7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
















Stan Prokop

Financing A Franchise? Looking For Peak Performance Financing When It Comes To A Franchising Loan In Canada .

Feeling Lost When It Comes To Franchise Financing In Canada ? You Shouldn’t



OVERVIEW – .Information on financing a franchise in Canada . Why are prospective franchisees feeling bewildered about successfully completing the franchising loan process for their new business



Financing a franchise in Canada. Does the Canadian entrepreneur have to necessarily feel ' lost ' when it comes to a franchising loan in Canada? We can understand why, but that doesn't have to be the case. Let's dig in.

Right out of the gate it’s important to know what type of financing you need to look for, and what's available. At the end of the day typically it’s a combination a finance that will include both a term loan and some sort of working capital facility unless you're in an ' all cash ' business, which is often the case in many service and hospitality type franchises.


Question 1 from clients we talk to is the issue of addressing how much they are required to invest in the new business. It goes without saying that your investment is both a must and critical. It shows your commitment to both the franchisor as well as the commercial lender.

Building your equity investment into your initial cash flow forecast is important. It's the combination of owner equity plus financing obtained that allow you to create the all important opening balance sheet and cash flow. This is a document that your bank or commercial finance firm will look at to see how repayment is going to be made.

The franchisee (that’s you!) need not feel lost or bewildered when it comes to preparing the financial part of your application. If you don’t have expertise in this area the basics can easily be prepared for you by an accountant, business financing advisor, and on some occasion’s assistance and input from your franchisor.

Typical franchise term loans are 5-7 years in length. At that time you should typically be in a position to have retired all the debt you've borrowed to buy the business. But don't forget also that along the way you may well be required, or need to, replace assets in your business or generate some level of working capital to cover your cost for inventory, carrying receivables, and normal sale growth scenarios .

Always be prepared to address issues in your financial forecasts. These are sometimes referred to as ' assumptions ‘. We all of course remember the dangers of ' assuming ' things in business. So be prepared to talk about issues around timing of revenues, profits, costs of assets, growth trajectories, etc.

We hate to drag clients ( kicking and screaming ?) into the world of accounting and finance - but clearly understanding how your repayment , breakeven, profits and cash flow and fixed costs work are somewhat key to your overall success . It's never just ' all about sales’.

Remember also that the majority of franchises you will look at purchasing don't require outside collateral from yourself as the owner that even offering that up to the lender won't make sense if your financial forecasts arent reasonable.

We maintain you don’t have to feel lost when it comes to a franchising loan in Canada. That peak performance we have talked about can come about even easier when you seek the services of a trusted, credible and experienced Canadian business financing advisor who can assist you with your franchise financing 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 10 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 :

7 PARK AVENUE FINANCIAL = FRANCHISING LOANS IN CANADA






7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653
Email = sprokop@7parkavenuefinancial.com



















Stan Prokop