Our blog highlights Canadian Business Financing solutions via receivable finance , equipment finance, working capital financing, asset based lending, business acquisition financing,franchise finance, and tax credit monetization via SRED and Film Tax Credits. Our goal is to educate and assist Canadian businesses with their financing needs. You Are Looking For Canadian Business Financing! Welcome to 7 Park Avenue Financial Call Now ! - Direct Line - 416 319 5769
WELCOME !
In 2004 I founded 7 PARK AVENUE FINANCIAL. At that time I had spent all my working life, at that time - Over 30 years in Commercial credit and lending and Canadian business financing. I believe the commercial lending landscape has drastically changed in Canada. I believe a void exists for business owners and finance managers for companies, large and small who want service, creativity, and alternatives.
Every day we strive to consistently deliver business financing that you feel meets the needs of your business. If you believe as we do that financing solutions and alternatives exist for your firm we want to talk to you. Our purpose is simple: we want to deliver the best business finance solutions for your company.
Monday, November 17, 2014
Finance Solutions Via Leasing : Leased Assets Without Tanking Your Business
The Have More vs. Have Not In Equipment Financing In Canada
OVERVIEW – Information on finance solutions in Canada. Leased assets offer numerous advantages when considering the lease vs. buy decision and that’s why these key leasing equipt .points matter
Leasing is used by over 80% of all North American businesses. But do those firms that currently choose finance solutions via leased assets really have more going for them vs. those ' have nots' who are constantly searching for an asset finance solution? Let's dig in.
Picking the right equipment financing partner and solution is as much knowing what’s going on as it is asking the right questions. One of our mentors once said ' I never learned anything listening to myself talk ‘!
Equipment leasing is a year round solution, depending on what’s happening in your company and your industry. There are numerous challenges in growing a business, and if your business and industry is dependent on new assets and technology ' refreshes' you're arrived at the right spot.
Let's take a look at questions you should be asking when it comes to the end of your ‘lease vs. buy ' decision. One of the tenets of leasing is that if an asset improves your business and has a longer life cycle, or need for change, you should be leasing. Your ability to determine the right monthly payment allows you to consider cash outflows on the lease vs. benefits you will receive from increased revenues, profits, or improved processes.
Next it's important to determine what leasing company you want to work with. This might be on a long term relationship basis, or simply for a specific one time need. The right partner firm will allow you to clearly understand cash outflows on the lease, the actual structure of the transaction, and any flexibility that might be required regarding seasonality of payment. Also, a solid partner will give you some choices around type of lease you need (capital, or operating), as well as balance sheet or tax ramifications that come with equipment finance.
The right partner will also help you understand the ramifications of the residual value of the asset at the end of the term - under certain circumstances you want to know how you can extend a lease, upgrade it, buy it out, or return the asset.
By the way, the right long term lease partner is also capable of getting a one time ' MASTER LEASE' in place, allowing you to simply add schedules to the lease as you need new assets - bottom line = quick/easy.
Also investigate your obligation around things such as insurance, marinating /servicing the asset (if required) and knowing your legal rights around what the industry calls ' end of term '.
So its clear , you can choose to be a ' have not ' in lease financing, but some key basics and working with the right partner will put you in the coveted ' have more ' camp - giving you 100% asset financing, , cash flow conservation, inflation hedge, and the ability to stay up to date with changing technology and fixed asset needs.
Leverage the knowledge and expertise of the right asset financing partner - seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with your leasing finance solutions.
Stan Prokop - 7 Park Avenue Financial :
http://www.7parkavenuefinancial.com
Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 90 Million $ of financing for Canadian corporations . Info /Contact :
7 PARK AVENUE FINANCIAL = CANADIAN EQUIPMENT FINANCING EXPERTISE
Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Direct Line = 416 319 5769
Office = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
' Canadian Business Financing With The Intelligent Use Of Experience '
Stan Prokop
Saturday, November 15, 2014
Funding Films & Movie Finance In Canada : Film Tax Credits Are Your Ace in the Hole
Film Tax Credits Are The Big Surprise In Financing Movies / TV/ Animated Projects In Canada
OVERVIEW – Information on funding film, tv and digital projects in Canada. Movie and transmedia film tax credits are key to successful full financing of your project – Here is why and how
Funding films (as well as television and digital projects) in Canada via film tax credits is one of the most solid ways to help achieve full funding for your projects.
It probably comes as a surprise to many that the Canadian federal and provincial governments are in fact the ones that provide the funding for movie finance ( again, TV and Transmedia also ) via refundable tax credits . Financing those credits is your ' ace in the hole ' so to speak. Let's dig in.
Competition is good for any business, and there's certainly a fair share in the film tax credit business. Incentives provided by the province you film or produce in compete with U.S. states, as well as burgeoning film industries in many other countries. The film industry is somewhat unique in that many countries have chose to work together in a formal manner on productions - these are known as ' co -productions ' , and if a co-production treaty exists on your project tax credits derived from that are still valid.. and financeable!
As far as Canada goes projects tend to be function of geography or talent or in some cases the simple fact that the tax credit has the ability to finance anywhere from 30-50% of your budget. While many U.S. states that offer film credits are constantly in a debate over the real economic benefit the Canadian government and film industry forges on with generous credits to the tune of billions of dollars. Well over a 100,000 people are in fact employed in the media industry in Canada and billions of dollars in total revenues are associated with the industry.
Refundable tax credits in the film, TV and digital animation industry are known as ' soft money ' - their main purpose is simply to lower the overall cost of any movie, TV show, of special effects project. That ' FX ' part of the industry, digital animation is in fact probably the fastest growing part of the business, and in fact these credits (again also fully financeable) even have their own legal category of tax credit.
Because some projects in media might never pay for themselves refundable govt credits offset a large part of the risk that goes into any project. Top experts tell us that from the provincial and federal govt perspective the focus is as much on jobs, employment and taxation revenues derived from the multi billion entertainment industry.
So how are these credits financed? Job #1 is to determine which of several credits will allow you maximize funding. This is often, if not almost always done via a qualified film tax credit accountant. They review the various ' tables ' provided by the provincial and federal body to determine how you can best navigate maximum funding.
After you've applied for and received your tax credit certificate/approval you're in a position to start your project, knowing full well that you've covered off a large part of the total funding package of any project which typically is owner equity, debt, tax credits, and specialized forms of funding particular to the film/TV/transmedia . Those include pre-sales, gap, print and advertising, etc.
Film tax credits are financed either on completion or during your project - the goal of both timeframes is dependent on your cash flow needs. Typical loans tend to be in the 70% range based on the total value of the credit. The financing is typically structured as a temporary bridge loan pending funding by the province and Ottawa (Note to non - Canadians - that’s our capital!) and the loan is collapsed one the govt remits on the project.
If you're focused on achieving ' ace in the hole ' status from your media financing needs seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with your movie finance needs.
Stan Prokop - 7 Park Avenue Financial :
http://www.7parkavenuefinancial.com
Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 90 Million $ of financing for Canadian corporations . Info /Contact :
7 PARK AVENUE FINANCIAL = CANADIAN FILM TAX CREDIT FINANCING EXPERTISE
Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Direct Line = 416 319 5769
Office = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
' Canadian Business Financing With The Intelligent Use Of Experience '
Stan Prokop
Thursday, November 13, 2014
Government Small Business Loans In Canada : Last Call For Information You Need
From Zero To Sixty : Govt Small Business Guaranteed Loans In Canada
OVERVIEW – Information on government small business loans in Canada . The ability to achieve the financing you need in a govt backed SBL loan depends on this information
Government small business loans often come with the perception that anything to do with this business loan program moves at a very slow speed. That isn’t the case, not the least reason being that your loan requires no correspondence or meeting with the govt! (More about that later) While ' zero to sixty might seem a little too fast we'll show you that proper info and planning make this attractive business financing solution very accessible achievable in less time than you think . Let's dig in.
Traditional financing in Canada, mainly by banks, has strong appeal for business owners and entrepreneurs. The challenge is qualifying; as it must be clearly proven that your business has revenues, profits, a clean balance sheet, and proven cash flows.
Part of the appeal of ' traditional ‘financing is low interest rates and financing costs. ‘Cost effective ' and ' efficient ' aren't normally associated with start up or SME COMMERCIAL FINANCE. The Govt small business loan program in Canada, underwritten by Industry Canada, offers that lower cost of financing for firms that cannot fully qualify for term loans or cash flow financing.
Many start ups and franchise acquisitions are often financed by the program, which is accessed by thousands of companies every year, to the tune of billions of dollars. The clear benefit here is strong funding at competitive costs from very reliable sources. Since Canada's chartered banks administer the program it's safe to say it’s that ' reliable source'!
Top experts tell us that many new and emerging businesses are often initially funded by owner equity, friends and family, and, dare we say it ' credit cards'!
There are some very basic requirements that come with the program - they include:
Good personal credit history of owner/owners
The business must operate from a leased or owned business premise
Funds can only be used for equipment needs and leaseholds, or real estate
The eligible revenue cap on the program is 5M dollars - obviously start ups are totally ok with that, and tens of thousands of businesses in Canada have revenues under 5M dollars . Economists tell us this sector is in fact driving a huge portion of the Canadian economy.
The government guarantee on the loan via the bank obviously makes the program attractive to bankers that actively participate in Govt loan program. That decreased risk of loss is very attractive to our generally conservative Cdn. banks! The bottom line for both the bank and yourself - it's easier to support and start or grow an existing business.
So how does one prepare and get started? Key basics are a credible business plan or exec. Summary, info on your business experience, a list of what funds will be used for, and a realistic cash flow projection that shows repayment of the loan.
' Last call ' often refers to your final opportunity - so if you're ready to explore and investigate or commence a government small business loan financing seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success with a track record of success who can assist .
Stan Prokop - 7 Park Avenue Financial :
http://www.7parkavenuefinancial.com
Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 90 Million $ of financing for Canadian corporations . Info /Contact :
7 PARK AVENUE FINANCIAL = CANADIAN GOVERNMENT SMALL BUSINESS LOAN EXPERTISE
Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:
7 Park Avenue FinancialSouth Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Direct Line = 416 319 5769
Office = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
' Canadian Business Financing With The Intelligent Use Of Experience '
Stan Prokop
Wednesday, November 12, 2014
A Commercial Leasing Company : Your Ride To The Top In Canadian Equipment Finance Needs
What Do The #’s 3 And 10 Have To Do With Lease Financing In Canada – Answer : Everything
OVERVIEW – Information on equipment finance in Canada. The commercial leasing company offers asset acquisition solutions if properly understood and utilized
Equipment finance needs require knowledge of the 3 and 10. Knowing what a commercial leasing company does, and how it works relative to your acquisition needs puts you in a position of equal power when it comes to asset financing. That new found knowledge becomes your ' ride to the top ‘. Let's dig in.
Let's first cover off the 3. There are essentially 3 types of lease firms you should be working with. Not working with the right one has the strong potential for wasting time and expense.
As we have said there are different ' types ' of organizations that offer the asset financing you need for your fixed asset acquisition needs. Knowing which source to access for a particular need is a valuable knowledge tool for the business owner/financial manager.
While Canadian chartered banks are not always first to think of when it comes to equipment lease more and more of Canada's banks have entered the leasing market. They either own, or operate numerous lease firms. To qualify your firm must be credit worthy with an appropriate mix of profits, assets and cash flow. Bank leasing is available in small, mid and large ticket transactions. Larger transactions are often tied to your total banking solution.
Many mfrs also offer financing services. They do this directly, via what’s known as ' captive ' financing, or they partner with firms that offer lease financing to their clients. Captives use financing to increase sales as much as generate lease profits on finance costs. As a general rule you will always get a better deal on price, terms and structure when offered by the mfr. - in some cases the rates are even subsidized to enhance the financial offering.
The bulk of commercial lease financing in Canada is offered by independent commercial lease company. Whether Canadian or U.S. owned they offer the widest variety of funding sources, with many specializing in deal size, industry niche, geographical location, or credit quality focused. By the way, many firms that might not qualify for bank or captive financing can have leases structured to qualify for financing. While they might mean a down payment, a shorter amortization, etc in the end it’s the approval that counts to the business owner.
Let's move on to the 10’s. Here we are talking about specifics you need to address in constructing a finance lease that makes sense for your asset acquisition. Those ten issues include: conveying the use of the equipment to the lessor, working with the right lease company, understanding the final monthly payment relative to your cash flow, mid term lease flexibility, insurance .maintenance needs if applicable, upgrade options, end of term obligations, returns if equipment is not going to be owned, and finally any miscellaneous costs associated with the lease.
A simple checklist could be constructed to ensure you've covered off all the bases. Not knowing the real story on any of our ' 10 ' ultimately will cost you time and money.
So there you have it. The 3 and 10 covered completely! An alternate level of comfort? Seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with your commercial leasing company and equipment finance needs.
Stan Prokop - 7 Park Avenue Financial :
http://www.7parkavenuefinancial.com
Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 90 Million $ of financing for Canadian corporations . Info /Contact :
7 PARK AVENUE FINANCIAL = CANADIAN EQUIPMENT LEASING & FINANCE EXPERTISE
Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Direct Line = 416 319 5769
Office = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
' Canadian Business Financing With The Intelligent Use Of Experience '
Stan Prokop
Tuesday, November 11, 2014
Finance Lease Solutions Almost Always Make Sense : Equipment Financing Works
Can Equipment Financing Buy Business Happiness In These 4 Asset Categories ?
OVERVIEW – Information on finance lease solutions in Canada . Equipment financing makes total sense for consideration in these 4 asset categories – equipment , construction, technology/computers and software
Equipment financing in Canada might not be able to buy you happiness - but it sure makes sense to consider finance lease solutions in these 4 categories of business assets. Let's dig in.
When business owners understand some equipment lease basics all of sudden acquiring assets in these 4 asset categories makes total sense.
1. Computers / Technology - investments in this area tend to be some of the larger financing decisions that many companies make. Whether it’s a commodity type solutions or a specialized software /hardware acquisition a lease solutions tends to make these type of assets ' affordable '. The ' sticker shock ' of total investments required can be significantly mitigated with lease pricing and structure - allowing business owners to conserve working capital and maximize ' return on investment '.
No asset depreciates faster than technology, so the ability to keep your business competitive while maintaining flexibility clearly gives you a ' total solution ' approach.
2. Software - More often than not investment in software solutions makes firms more profitable and efficient. Almost any type of ' application software' can be financed. That includes license to use the product and the ability to upgrade to newer versions via a properly structured payment plan. Accounting packages as well as office software are typical items that are very financeable.
3 .Equipment /Production Assets - 80% or more of all North American businesses use, or have used asset finance leasing solutions. When business owners and financing managers combine the ease of approval, payment flexibility , as well as the balance sheet and tax benefits of asset financing more often than not, in fact almost ways, outweighs outright purchase .
And those assets for finance consideration? They include metalworking. Fabrication, injection molding / cnc, milling, and press equipment, to name just a few!
4. Construction Equipment (New & Used!) - It no surprise that in the next 4-5 years analysts advise that over 200 Billion $+ of new and used construction assets will be purchased in the U.S. and Canada. Today’s buzzword is ' infrastructure ' and these assets in mining, concrete and road equipment are key parts of that major trend.
While Construction equipt. might not be as ' technologically advanced ' as computers it's running a close second, and traditional mechanical equipt has become very advanced while providing more cost effectiveness at the same time. Whether it’s one unit, new or used, or a fleet of assets items such as cranes, cement trucks, excavators, etc are high tick cost that can be financed at low ticket payments!
When acquiring assets in our four categories we've covered it's important you're familiar with basic terms around rates, residual values, purchase option flexibility, as well as the type of lease you're entering into, either a capital ( lease to own ) or an operating ( lease to use ) solution .
A balance approach is important in any consideration of asset financing and acquisition. While finance lease solutions eliminate ownership (unless structured properly) and have almost no termination ability, as well as coming in at sometime a higher cost it always makes sense to consider the cash flow conservation and other flexibilities that come with this solution.
Yes, money can't buy happiness, but business happiness when it comes to proper finance lease solutions is a distinct possibility. Seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with proper equipment financing solutions tailored to your business needs.
Stan Prokop - 7 Park Avenue Financial :
http://www.7parkavenuefinancial.com
Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 90 Million $ of financing for Canadian corporations . Info /Contact :
7 PARK AVENUE FINANCIAL = CANADIAN EQUIPMENT FINANCING AND FINANCE LEASE EXPERTISE
Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Direct Line = 416 319 5769
Office = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
' Canadian Business Financing With The Intelligent Use Of Experience '
Stan Prokop
.
Monday, November 10, 2014
Commercial Loans In Canada : No Silver Bullet Approach To Raise Capital For Business Investment
Eliminating The ‘ Dark Side ‘ Of Canadian Business : Financing
OVERVIEW – Information on commercial loans in Canada . The ability to raise capital for investment in business growth depends on a number of key factors.
Commercial loan needs In Canada: Cash and capital are two basic fundamental needs for any Canadian business. Your ability to raise capital and access funding for investment depends on some key factors. Let’s dig in.
Every counted the needs you have around working capital and ongoing cash flow? They include fixed costs such as rent/leases, wages, equipment needs, and even ongoing research and development if that's applicable to your industry. Business owners also want to ensure they are not overly exposed personally when it comes to personal assets and collateral they are more often than not required to pledge. The hard reality is that the search for cash and capital are never ending and your current situation will almost never mirror your long term needs. All those factors contribute to a feeling of entering the ‘ dark side ‘.
Many business owners and clients we meet are sometimes of the opinion there is one ' silver bullet ‘.
Top experts tell us that in fact a number of different factors determine what type of capital you require and in what amount .Those factors include:
Type of industry
Capital Intensity requirements re needs for fixed assets
Profit margins
Sources of capital can potentially be accessed quicker if you have access to people in the know - they include accountants, lawyers or a Canadian business financing advisor. Their ability to provide you with a road map to financing success increases commensurate with their expertise.
There are also huge differences in capital solutions depending on whether your firm is a start up, in business and growing, or mature and looking for new markets or acquisitions. NOTE: One of the best solutions for start up financing in Canada is the Govt Small Business Loan, aka the ' SBL '. It finances equipment and even leasehold improvements to rented premises. Having a track record in business or in a particular industry really helps here.
As businesses mature they need to both acquire and finance assets. Financing assets can be achieved through various means:
Traditional bank lines and term loans
Receivable and Inventory Financing
Monetization of SR&ED tax credits for companies that participate in that program
Asset based non bank business credit lines - They are known as ' ABL's
Equipment financing and Sale Leasebacks
Commercial lenders have never been more plentiful and are providing financing in various ' niches’ for SME COMMERCIAL FINANCE needs.
We constantly remind clients that angel investors , venture capitalists, and private equity groups offer equity capital for the rare 1-2% of business that qualifies for this method of capital raising - ' Equity '.
More mature firms may want to divest either divisions or founders may wish to sell their business. Acquisition financing must be matched to proper valuation and asset situations.
If you’re at the crossroads in business financial solutions consider seeking out and speaking to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can bring some light to the ‘ dark side’ of business : funding .
Stan Prokop - 7 Park Avenue Financial :
http://www.7parkavenuefinancial.com
Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 90 Million $ of financing for Canadian corporations . Info /Contact :
7 PARK AVENUE FINANCIAL = CANADIAN COMMERCIAL LOANS AND CAPITAL INVESTMENT EXPERTISE
Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Direct Line = 416 319 5769
Office = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
' Canadian Business Financing With The Intelligent Use Of Experience
Stan Prokop
Sunday, November 9, 2014
A SRED Research & Development Tax Credit Loan : SR&ED Finance In Plain Sight
SR&ED Tax Credit Financing Is The 5th Building Block In Your R&D Strategy
OVERVIEW – Information on SRED ( SR&ED ) research and development tax credit loan finance. Financing your refundable tax credit accelerates cash after your claim is properly completed and filed
A SRED (SR&ED) research and development tax credit loan finance strategy is essentially the 5th building block in your overall R&D strategy. The bottom line - it brings your cash recovery in plain sight! Let's dig in.
SR&ED claimants in Canada can be veteran participators in the program, or in some cases first time filers. From our perspective when we talk to clients in the area of SR&ED loans it's really a 5 prong strategy, with financing being that last building block that brings the cash home .
So what about those other 4 initial building blocks and how does the Canadian business owner/ financial manager filing ensure they have all the bases covered. It all comes down to a common sense approach to your R&D finance strategy.
First of all you have to ensure you're eligible, other wise time and expense will be part of your agenda you don't want. First time claimants often think their claim might be too small - smaller claims would typically be in the 50k range and larger claims certainly can be all the way up to a Million dollars+.
While the vast majority of firms are claiming SR&ED are legal corporations that actually isn’t a requirement and sole proprietorships/partnerships can also claim and file their R&D spend. Percentages of recovery of your research and development vary by category , and qualified SRED consultants or individuals can properly assess maximum recovery , which can be from 15-35% of your total spend.
Secondly, we've already mentioned the 'SR&ED Consultant ' - it's his or her role to ensure your claim qualifies. The quality of that filed claim will determine your total cash recovery, i.e. the refund. While the essence of a claim is the ' experimentation ' around the advancement of technology the manner in which that is documented is key.
The third building block is the way in which your claim is filed and when. You or your consultant is required to document your efforts and costs. Those costs typically include salaries that are a part of the R&D, payments to contractors, and overhead and materials. In recent years equipment purchased for research qualified but no longer does.
The 4th building block. It's simply filing your claim which is typically done at the time you file your annual financials. The majority of consultants that Canadian business/owners managers use are paid on a contingency basis so filing a proper claim in the right timelines is as important to them as yourself. In recent years these preparers of claims actually have to identify themselves and their compensation arrangement with your firm
That brings us to building block # 5, and it’s the financing of your claim, unless of course you choose to wait for a refund. Refundable tax credits are a key part of the cash flow for many firms, and for them it makes sense to finance a claim and accelerate cash.
A SRED tax credit loan is a very basic process, with your actual claim, i.e. the refund serving as the key collateral for the loan. Claims are financed at 70% loan to value... so a 200k claim would typically net the business owner 140k in immeidate cash.
And those payments? The good news is there are none during the entire waiting process - and when your claim is adjudicated and approved you immediately receive the balance of the claim less financing costs. If you are focused on financing next years claim and have already started to spend on R&D monies can also be advanced prior to final completion and filing of your claim. In effects it's a SRED credit line for your research...
If you're filing SR&ED claims and feel cash flow acceleration is key investigate SRED FINANCE by speaking to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you in the financing of your claim.
Stan Prokop - 7 Park Avenue Financial :
http://www.7parkavenuefinancial.com
Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 90 Million $ of financing for Canadian corporations . Info /Contact :
7 PARK AVENUE FINANCIAL = CANADIAN SR&ED TAX CREDIT FINANCING EXPERTISE
Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Direct Line = 416 319 5769
Office = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
' Canadian Business Financing With The Intelligent Use Of Experience '
Stan Prokop