SME Business Loan Finance : Best And Worst Strategies For Commercial Loans Success

Two Ways Of Looking At Your SME Business Financing Needs – Yours and Your Lenders!







OVERVIEW – Information on achieving success in SME Business loan finance in Canada . Knowing how banks and finance companies you’re your business allows owners/managers to access the right commercial loans for your their company at the right time

Commercial loans and SME Business loan finance comes with two different optics - one is of course the eyes of the owner/financial manager, the other is the bank or commercial finance company. No surprise to many that these two views often differ! Let's examine some best and worst strategies for achieving Canadian business finance success.

The criteria for firms in the SME (small to medium enterprise) sector are in some ways different from lending criteria for larger private and public corporations. One key factor in that area is owner equity which is often a lot less on the balance sheet of SME firms.

At the same time these firms need to purchase or replace key fixed assets or new technologies. This is often best addressed by looking at lease financing options, as equipment finance allows companies to minimize cash outlays. The even better news about leasing assets is that almost every type of credit profile can still access asset financing in this manner. Companies with weaker balance sheets may be asked to either increase a down payment of shorten the lease term, but they still can be approved.

Because SME firms rarely are able to, or in fact want to access additional equity they are relegated to only two other options - taking on debt or monetizing their existing assets. In rare cases a ' hybrid ‘third solution might be in the form of a solution that provides debt and has an equity component to it - for example a convertible loan or warrant scenario.

What then are the financing options available? Part of the solution is simply understanding where your firm is at on the start up or growth stage. Typical scenarios include those where sales are starting to grow but profits are not fully being achieved, if at all! The reality is that it’s at this time that business funding is often needed the most but in fact is least accessible in the eyes of the business owner. The lender, typically ' the bank' has already weighed in and criticized your balance sheet or lack of profits and positive cash flows.

Key solutions at this point in the road include:

A/R Financing
Inventory loans
Non bank asset based lines of credit
Tax credit monetization (Financing your SR&ED credits)
PO/Contract financing
Sales/Royalty finance

Because banks in Canada are both highly regulated public companies they can rarely provide all the financing you need based on their inability to fully secure loans to your firm. That's their story and they are sticking to it.

Even firms that are profitable and achieving some measure of return on equity banks will rarely lend to firms that are offside on the total debt/equity issue. Although it can be frustrating at times it is important for busines owners to know how banks look at your financials - if only for the reason you can understand the arithmetic and decline yourself!!

Banks focus significantly on cash flow and collateral security and debt to equity relationships on your balance sheet. Banks are very focused on identifying any risk - it's as simple as that. It's important therefore if you're in start up or growth stages that you manage your working capital and asset turnover to the utmost. That's all about inventory turns, collecting your receivables promptly, and managing payables and supplier relationships.

It's at these times that the owner/manager is best to explore commercial finance company solutions that are both traditional and alternative in nature. While pricing will always be higher it will provide you with the capital you need.

Have we forgotten anyone? Oh yes, the government!

Besides the aforementioned SR&ED program which provides billions in refundable tax credits ( these can be financed ) there is also the Small Business Govt Guaranteed Loan program, providing financing up to 350k for assets and leasehold improvements.

If you're focused on acquiring the best financing strategies for commercial loan financing success 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 SME business loan finance needs.

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 100 Million $ of financing for Canadian corporations . Info /Contact :

http://www.7parkavenuefinancial.com/commercial-loans-sme-business-loan-finance.html



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

Is It Time To Finance Your Shred Tax Credits ? Film Tax Credit Programs & SRED Are 100% Financeable

Why So Many Businesses Finance Their SR&ED And Film Tax Credits

OVERVIEW – Information on shred tax credits and film tax credit programs . Financing these refundable credits provides valuable cash flow when it’s most needed

Shred (' SR&ED') tax credits and film tax programs is all bout timing, as well you your time investment. Timing is of course everything in business... and life. Let's examine the benefits and reasons for financing your refundable tax credits in Canada. Let's dig in.


To say the entire ' SRED ' process ' takes time ' is a bit of an understatement. Naturally firms that file every year to get their share of the Billions of dollars the govt ' doles out ‘for this program probably have the process down to a tee. That still is time and money though, and for the first time applicant it's probably a bit daunting. But oh, the reward!

Our theme of timing really involves the absolute start of your SR&ED process right up to final filing of your claim . And oh yes, then the ' waiting ' part of our timing theme begins... as business owners/financial managers wait for their refund to be reviewed, processed, and funded .. the proverbial ' your cheque is in the mail!

Relying on a qualified SR&ED consultant is also a key part of the overall SRED process. It's these folks that identify your eligibility for the claim and create a claim summary that maximizes your total recovery If you choose to finance your claim , either before or after it is filed ( yes ' before ' is possible!) the reputation of that consultant is one of the votes to get your claim approved and financed.

Most business owners who file SR&ED have a fairly good handle on how much of a claim they will have based on the total amt of their spend vis a vis the govt formulas. As far as financing that claim you're eligible for a 70% loan to value vis a vis the total amt of your claim. For example a 100k claim would generate a 70k bridge loan in your favor - no payments are made for the duration of the financing. That duration of course depends on the timing of your review given the govt review, receives, and sometimes audits claims depending on size or their technical nature.

Many businesses eligible for 'SHRED' actually don't apply - they give various reasons - ' too complicated', ' we don't know if we qualify', ' we don't have anyone to prepare our claim', ' someone else does our r&d'.. Etc.

We'll let the business owner then decide if he or she wants to file and possibly finance a SR&ED claim - suffice to say their competitors are.

FILM TAX CREDIT PROGRAMS: Canada has of course gone ' HOLLYWOOD NORTH ' big time in recent years - the fluctuating Cdn dollar also plays a part in the decision to film, produce or animate a project in Canada.

Tax credits for file handed out in the Billions in Canada, by almost every province. Safe to say the debate rages on as to why the govt issues refundable tax credits... aka ' real money ' for this industry. While the pundits debate the producers / owners collect though!

In the U.S. tax credits vary among the 50 state regimes. Funding seems to come and go, as does the debate. Additionally not all states have ' refund credits ' as in the Canadian tax regimes. Canada is much more stable in this manner and most provinces and the federal govt agree that these credits benefit in some manner Canada.

Refundable film / TV and animation tax credits are fully financeable, much in the same manner as our aforementioned SR&ED program,

Whether you're making a movie of investing in commercial R&D in the commercial business environment consider financing your tax credits to cash flow those refunds immediately. 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 tax credit financing needs.

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 100 Million $ of financing for Canadian corporations . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN SR&ED AND FILM TAX CREDIT FINANCE EXPERTISE



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 '



ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.






Stan Prokop

The Digital Media Tax Credit In Canada : Financing Interactive Credits

Feeling Jilted On The Ontario Digital Media Tax Credit ? Don’t Panic – It’s Still Financeable!

OVERVIEW – Information on the digital media tax credit in Canada . Recent changes to the program don’t eliminate your ability to finance these refundable credits

The digital media tax credit in Canada allows Canadian firms to maximize their efforts in the oft exciting world of digital media. Recent changes will dramatically affect which firms can qualify for those refundable interactive credits in Ontario in particular. Let's dig in.

One way to look at the 'OIDMTC' is to view it as a financial tool that allows your firm, or project, to be financially successful , if only for the reason that work in this area is both capital , and people, intensive. Governments, and in particular the Ontario government have supported this sector... shall we say... big time. That has allowed Canadians to gain international prominence for work in digital and transmedia efforts.

The work done in this area of entertainment allows Canadian firms and projects to be recognized as well as capitalize on individual projects. The ability for the work done inside the digital media tax credits allows firms and projects to maximize revenue as well as gain critical acclaim.

Many firms ( but not all as we shall soon see ) that apply for the credit are early stage firms and cannot qualify for any other type of financing, much less Canadian chartered bank loans or credit facilities. They need the financing acquired under ' OIDMTC' credits to attract human capital and stay competitive with international competitors.

Smaller firms in particular have trouble achieving financing solutions for their work and traditional VC or Private Equity financing is more often than not totally unavailable in this sector of the market, notwithstanding the fact that out of some very small companies emerge some major firms over time. Experts tell us that over 4 Billion dollars in revenue is generated by Canadian firms in digital media in recent years.

What types of firms are in this sector and qualify for Digital interactive media credits? They include those in film, social media, mobility offerings, gaming, etc.

A CHANGE HAS COME IN ONTARIO: Recently introduced legislation in the province of Ontario has dramatically changed who can qualify for the Digital Media Tax Credit. That change has mandated that the credit can only be utilized for ' entertainment/educational products for children under 12 years old '! This has eliminated many applicants such as newspapers, mfg companies, insurance firms, and yes... even banks! who have utilized the program for developing ' apps ' and other digital media offerings?

The digital interactive tax credits provide an approximate 40% refundable credit on all work such as labor and marketing. In 2014 the Ontario govt paid out almost 90 million dollars of this tax credit... with that number seeming to grow all the time! Industry experts in Ontario indicate that amt may be cut in half. The credit though remains very competitive with those offered in Quebec and B.C.

So what's our bottom line?

Simply that even though the game rules have changed in interactive credits, particularly in Ontario these credits are still 100% financeable. Financing for refundable interactive credits is structured as a bridge loan, with an advance of approx 70% of the total credit you have received. No payments are made for the duration of the loan and the loan is collapsed when the govt sends your refund chq.

If you're interested in financing OIDTMC tax credits 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 refundable tax credit financing needs.


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 100 Million $ of financing for Canadian corporations . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN DIGITAL MEDIA INTERACTIVE TAX CREDIT FINANCING


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

ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.






' Canadian Business Financing With The Intelligent Use Of Experience '

Stan Prokop

Lease Versus Buy : Hacking Into The Equipment Financing And Leasing Decision Business

The Subtle Science Around Lease Vs Buy Decisions And More….

OVERVIEW – Information on equipment financing in Canada and How Canadian business owners assess the lease versus buy decision when contemplating leasing new or used assets

Equipment financing decisions in Canadian business often start at the ' lease versus buy' decision point. Leasing business assets is a strategy used by the majority of Canadian businesses. We're examining that initial decision to finance as well as uncovering other information not generally understood. Let's dig in.

While business owners/financial managers, and rightfully so, reflect on the use of acquired assets and the profits or benefits they will generate it's also important to understand the financial impact on your financial statements.

What factors impact that initial decision to either buy the asset or finance it? They include:

Your ability to access financing approval

Any Tax issues that will play into the finance decision - as well the balance sheet effect of your transaction needs to be considered relative to any ratios and covenants that current senior lenders might require

Your ability to justify the cash flows on the transaction

Naturally if your firm has the available cash and is able to not impact your current credit lines negatively simply buying the asset is an option. Many business owners still hold onto the concept of ' pride of ownership' and do not wish to take on additional debt. They simply depreciate the asset over its useful life.

Businesses also have the option of financing assets under a term loan, and can deduct the interest on the loan on their tax filings.

Getting back to ' leasing ' though 2 key options remain. Companies can utilize an 'operating lease', or a 'capital lease ' to acquire the asset. Operating leases involve your lessor taking a position in the asset whereby when the asset is returned at the end of the term they will dispose of it for profit or refinance it with another client. This type of transaction reduces your overall cost and gives you of course full use of the asset during the lease term. Your actual lease payments are tax deductible

It should be noted that new accounting rules worldwide have somewhat discouraged the ‘off balance sheet ' aspect of operating leases.

By far the majority of equipment financing in Canada is done under a ' capital lease ' scenario. Here your company has ownership as well as use of the asset and you are in effect financing the entire purchase- unlike our operating lease scenario. Interest financing costs are deductible under the capital lease scenario.

The actual financing costs in leasing are dependent on your firm’s financial strength as well as the overall value of the asset.


While equipment leasing is utilized by many it is certainly not understood by all. Businesses lose a significant amount of money by not understanding their obligations during and at end of term. You should ensure the lessor contacts you prior to the end of the term and agrees on final disposition and termination of the lease. Otherwise a new lease term might begin with additional financial commitments by your company.

For those firms that have entered into operating leases they must carefully consider which of the three options they will choose under an operating lease that comes to full term. Those options are to return the asset, purchase it for fair market value, or agree to a defined extension of the lease. Even simple issues as the cost of returning and shipping the asset back to the lessor are often overlooked and can become costly. Miscellaneous charges such as admin paperwork and de-registration of the lessors security filing should also be considered and attended to.


The bottom line? The lease vs. buy decision should not be taken lightly. If you're focused on getting the proper information to acquire your business assets with the right finance solution 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 equipment financing and leasing needs.



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 100 Million $ of financing for Canadian corporations . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN EQUIPMENT FINANCING AND LEASING EXPERTISE



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

The Business Finance Challenge : Inside The Quest For Commercial Loan Financing In Canada

8 Secrets To Canadian Business Financing Success

OVERVIEW – Information on business finance solutions in Canada . Commercial loan financing comes with some prerequisites . Understanding various loan and asset monetization options for the Canadian business owners

Commercial loan financing in Canada is all about the right solution as well as timing for business finance needs. Top experts tell us (and business owners know it intuitively) that access to capital is a major issue for firms in the SME (small to medium enterprise sector). Are their some ' secrets' to improving success in your business finance needs? We think there are. It's all about knowing some of the basic rules. Let's dig in.

1. Personal credit history - Commercial lenders and banks place a fair bit of emphasis on the owner’s personal financial profile. The essence of this revolves around the perception that you will run your business finances in a similar manner to how you run your personal finances. While personal credit scores will never be the only reason you are declined for financing it's certainly a factor and gets part of the vote

2. Collateral - Many forms of financing involve collateral, both within the business and outside the business. Knowing and being able to negotiate the true value of your collateral is a key component of business financing. In certain cases it either makes sense, or will be required, to have collateral properly valued and appraised. That's important for both the borrower and the lender



3. Cash flow generation - Banks in particular, but in fact all lenders place a certain amount of emphasis on cash flow if only for the reason is that it's what pays back loans! Successful businesses can properly demonstrate their past, present and future cash flows as they relate to growth, debt repayment, etc.



4. Understanding your Options - Many business owners feel somewhat ' doomed' when raising funds for their business if only for the reason they don't understand their options. Here it's important to get a handle on whether you're able to take on debt on your balance sheet or if the focus is on monetizing assets you already own. In other cases you're looking for working capital solutions such as business lines of credit that monetize A/R and inventory.


5. Sourcing the right lenders - Confusion can reign supreme for business owners/managers if only for the reason that there seems to be a multitude of financing sources. These include large institutions such as banks and insurance companies, as well as commercial finance firms that are either Canadian or U.S. owned. In some cases it makes sense to source local financing if the needs of your business demand a closer relationship with the lender.


6. Identifying the need - Debt / Cash Flow / Asset Monetization - The search for business capital involves understanding the true need of your business. Those needs typically revolve around survival, growth, turnaround, merger and acquisitions, or management buy outs.

7. Government sources of funding - While some business owners write off the govt in their minds as a source of financing two great programs exist. They are the Govt Guaranteed Small Business Loan and Canada’s SR&ED program. It makes great sense to check out the benefits of these two programs as they relate to your financing needs.


8. Alternative vs. Traditional Financing - In recent times a number of alternative non banks sources have risen to the top of the pile in business finance solutions. While they (not always) more often than not have a higher cost they can provide all the capital your business might need.

While the word ' No' will crop up often in your business finance search your chances of success increase greatly in understanding our 8 tips on your quest for business finance success. Seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you in your commercial loan financing needs.


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 100 Million $ of financing for Canadian corporations . Info /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 '



7 PARK AVENUE FINANCIAL = CANADIAN COMMERCIAL LOAN FINANCING AND BUSINESS FINANCE EXPERTISE




Stan Prokop

Asset Based Lending In Canada : Let’s Talk About Why ABL Is The Business Bank Alternative

Eleventy Jazillion Ways To Finance Your Company : But This One Works




OVERVIEW – Information on asset based lending in Canada . Know alternatively as ‘ ABL ‘ this form of line of credit financing is the business bank alternative to working capital and cash flow financing

Asset based lending in Canada provides Canadian business borrowers with a ' one stop ' solution for their line of credit needs. Also called " ABL' for short, it’s a business bank alternative. Let's dig in.

Although business borrowing costs are at all time lows the main reason business owners/financial managers consider 'asset based’ credit lines is simply the flexibility and additional borrowing power they provide for your business. It's a welcome relief for firms that can't always access any, or enough Canadian chartered bank financing.

By the way, some of the most recognized and large firms also use ABL credit lines if only for that same flexibility they provide. They have made the choice to replace bank borrowing with commercial finance borrowing even though they categorically qualify for bank credit.

Sizes of asset based credit lines range from 250k on the low end to tens of millions on the high end, with numerous players - both Canadian and U.S. based providing Canadian borrowers with these facilities.

Cost is of course always a discussion point when it comes to business borrowing. Although large credit worthy firms can borrow almost at the same or better prices than bank offerings the truth is that the majority of ASSET CREDIT facilities will always be more expensive. It's a case of balancing costs against the benefits of all the financing you need for working capital and cash flow based on your revenues and assets. As with any type of business financing you have to balance costs with access to capital and flexibility, as well as the time it takes to get approved. (ABL financing can happen in a matter of a few weeks if the borrower has all the proper up to date financials and asset lists)

Because the asset based lender uses very clear formulas based on your receivables, inventory, and equipment your borrowing power will always fluctuate with your needs. Typical ABL collateral financing is 90% for receivables, and pre determined generous formulas for inventory and equipment based on their real world value.

In some cases firms also used asset based credit to acquire a competitor or re-arrange existing debt. In other cases ABL is simply a temporary bridge loan to get your company to where it needs to be without taking on more debt .Business owners/mgrs quickly pick up on the fact that if sales are growing and there are receivables and other assets to back them up they have just discovered they now have all the financing they need.

Canadians are always recognized as being conservative - if only for that reason some firms never check out asset based lending as a good choice for their business - for whatever reason they associate not having bank financing in place as a stigma. Not the case these days as many forms of alternative finance are in fact the new ' mainstream'.

Let us not forget ratios and covenants. ABL lending is either covenant or ratio light, or non existent. It's your assets that back up the facility - not ratios. Banks love ratios! In fairness though reporting requirements are often more stringent when it comes to ABL borrowing. So be prepared to provide updated A/R, inventory and payable agings on an ongoing basis. Monthly is an absolute minimum but weekly reporting might also be required. It's the trade off you make for the non bank alternative.

If you're looking for someone who understands your business borrowing needs and you finally want to choose a non business bank alternative 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 borrowing needs.



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 100 Million $ of financing for Canadian corporations . Info /Contact :


http://www.7parkavenuefinancial.com/asset-based-lending-business-bank-abl.html


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

Tax Credit Financing And SRED Finance In Canada :Thinking Differently Via A SR ED Loan

Alarm Clock Ringing OnYour SR&ED Claim? It’s Time To Cash Flow It

OVERVIEW – Information on tax credit financing in Canada. A SR&ED loan has Canadian firms thinking differently on their r&d capital investment. SRED finance works by maximizing the cash flow timing around your claim . Here is how and why

SRED Financing in Canada is all about using tax credit financing for the right reasons. Maximizing Canada's r&d program via a SR ED loan is all about reaping the final benefit of the program - ' Cash ' Let's dig in .

It's important to view financing your SR&ED credit as an option that's your choice as a business owner/financial manager. It's simply one more way to assist in both the R&D portion of your business as well as your general financial health. Simply speaking, being eligible for the program makes you eligible for the financing.

Refundable SR&ED credits are of course for privately owner companies in Canada. They, along with their counterpart, film tax credits are administered by CRA - Canada Revenue Agency.

Financing your SRED claim is all about cash flowing your refund - many businesses that utilize the program are at various stages of what we can call their ' life cycle '. In fact many firms that choose to monetize their claim are in start up or very early stages of development. It's at these times that cash flow and working capital are most important.

What then are the typical uses of cash when financing your R&D claim? Typically they include:

Funding additional research - many companies have an ongoing R&D program annually

Utilizing the funding to move their R&D into new markets - aka Revenues!

General working capital needs - payroll, supplier commitments

Financing growth via new orders/contracts, etc

Some clients we meet often speak of the additional time commitment required to prepare the claim. Naturally a lot of that time commitment can be eliminated by both having documentation in place, and even more importantly ' tying your horse '

to the right SR&ED consultant - it's these folks that prepare the claims for this industry. Naturally a good consultant will maximize your claim.

Utilizing the right consultant adds legitimacy to your claim - and categorically speeds up the process both in writing your claim and ensuring it moves through the govt processes at 'warp speed ' .

Businesses will appreciate that not all govt programs move at warp speed!!







By the way, if you're looking for proof of the benefits of the program you need only understand that thousands of firms just like yours (including your competitors) reap almost 3 Billion dollars a year in refunds.

A SR ED loan is all about needing, and getting your money now. It's your chance to beat the ' waiting game ' as refunds can take anywhere from 3-12 months depending on the complexity, size and filing time of your refund claim. In fact the entire finance process, when you're working with the right firm can take only a couple weeks to receive funding.

SRED Finance typically monetizes 70% of your total claim. For example a 200k claim will net you 140k in loan proceeds. Really the simply way to look at it is to view the SR ED claim as an account receivable of your business - and you're simply borrowing against that asset . By the way the financing costs of a SR&ED loan are built into one final balloon payment at the end of the loan - this is a bridge loan with no monthly payments.

If you're looking to ' think differently ' on your SR&ED refund and want to consider the benefits of financing that claim today 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 cash flow needs.



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 100 Million $ of financing for Canadian corporations . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN SR&ED TAX CREDIT FINANCING EXPERTISE



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 '

ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.




Stan Prokop