Business Purchase Financing In Canada : Winning Tactics To Buy A Company Successfully

Smart Strategies To Finance A Business Purchase In Canada

OVERVIEW – Information on business purchase financing in Canada. Numerous options to buy and finance a company are available to owner/entrepreneurs

Business purchase financing in Canada
requires ' smart' strategies to complete a transaction that make sense for both the buyer and the seller. In fact there are some proven winning tactics to effectively complete acquiring a business - even your competitor! Let's dig in.

Whether purchasers like it or not the amount and type of financing capital you can raise will often have a dramatic effect on the size of company you are looking to purchase, or merge with. We're talking of course of a combination of both debt and owner equity.

Of course valuation methods differ on that ultimate purchase price, and valuing a business from both the sellers and buyers perspective is an entire conversation for another day - suffice to say that good deals are completed when a fair purchase price is agreed upon.

If one expectation is clear in business purchase finance it's that there must be a reasonable amount of both debt and owner equity. As important is the fact that different types of finance will require more owner equity. When using bank financing it is safe to assume a good level of owner equity/down payment will arise.

When buying a company that has profit and financial challenges the purchase price will more often than not be very attractive - the challenge being ' the turnaround required.

In many cases sellers are willing to participate in the sale of the business to you. That's known as the 'VTB ' - the vendor take back and can be a strategic part of your overall financing plan.

Caveat Emptor - while the majority of banks or commercial finance companies view vendor take backs as quasi equity, in some cases this might simply be viewed as another form of debt - therefore subject to all those same capital/ debt equity issues .







What are the key elements of positioning your purchase of a company for a commercial finance company or bank? They include:

A solid business plan and operating strategy

A clear overview of the industry (which hopefully is not ' out of favor ' currently)

Ownership/mgmt experience

A financing plan for sales/ growth and profits

What then are the key mechanisms used to finance a business purchase? Note also that some of the finance strategies listed below is often a combination of financings depending upon how complex or large your transaction is -

Business Purchase Finance Solutions:

Canadian chartered bank term loans

Mezzanine financing / Cash Flow Loans

Asset based term loans or non bank business credit lines

Sale leasebacks / Equipment financing

Govt of Canada Guaranteed Small Business Loans

If you're looking to buy a company and want to ensure you've got a winning finance strategy in place 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 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 - Completed in excess of 100 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 & Contact Details :

http://www.7parkavenuefinancial.com

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

An Asset Based Lender Solution To Business Finance : Why ABL Credit Works

Can Asset Based Lending Solve Your Canadian business financing challenges?

OVERVIEW – Information on financing solutions offered by the asset based lender in Canada. ABL Credit for business finance needs is a solid alternative to many firms who can’t access all the bank credit they need to run or grow their business

Business finance in Canada always comes down to ' choices' for both owners & financial managers. New, emerging, or middle market companies often rely on the ' asset based lender’ and ' ABL Credit ' for financing needs. What are these solutions and who exactly offers them? Let's dig in.

As we've mentioned in the past it's all about understanding the terms ' assets ' and ' collateral '. While the assets reside on the balance sheet in paper form and description it’s really the true value of collateral that drives asset based lending solutions. These financings come with rates that are higher because they compensate for a bit (or a lot) more risks that commercial lenders take who are not banks.

(SPOILER ALERT - Banks take on less risk)






There is a wide range of financial offers offered by ABL Credit. ABL is of course the acronym for Asset based lending. Some of the key offerings in this finance industry segment include:

A/R Financing (Commonly called factoring)

Inventory Finance

Business Credit Lines based on your assets of inventory, receivables and fixed assets

P O Financing

Sale Leasebacks / Equipment Financing

While these types of loans typically run from 250k on the small end to multi millions in size smaller deals under that lower threshold are available if you are working with the right firm. Your financials , sometimes , but not always, complimented with a business plan, executive summary and cash flow forecast will always be a good start in securing your financing.

Why do companies gravitate to the asset based lender? Often it’s to put a short term / intermediate term cash flow fix in place. It can be a short term bulge in your business, or fixing the problem of taking on large new contracts or business. In some cases asset loans are a great way to acquire a company or competitor.

What are the key features in the decision making process for asset lenders for either term or operating credit facilities? They include:

Overall cash flow situation

Current financing arrangements

The amount and type of debt you have on your books

The general risk level that comes with your company or industry

Is the ABL CREDIT solution your ' fix ' for business finance needs? It just might be - consider seeking out and speaking to a trusted, credible and experienced Canadian business financing advisor who can assist you in solving liquidity 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 - Completed in excess of 100 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 & Contact Details :

http://www.7parkavenuefinancial.com


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

Why Asset Backed Business Loans And Asset Lending Make Your Business Financeable For Growth

Information on asset backed business loans in Canada. Asset lending is a solid mechanism to achieve your growth financing and operating finance needs

When was the last time you really found business loans solutions that made total sense for your firm. We're thinking that you will say ' right about now!"

after you finish hearing what we're going to tell you about asset lending and asset back lines of credit in Canada.

Looking for understatements.?We always are. Here's one... 'Business financing has never been more difficult to achieve than in the last couple years '! Now that's an understatement. It seems to be all about problems and never about solutions.

What if there was a type of business financing in Canada that made all firms eligible yet at the same time gave you access to unlimited amount of credit, and only had one requirement. Too good to be true? Not necessarily. And what is that requirement our clients always ask, and the answer is ' assets '.

Canadian asset lending via a non bank asset backed line of credit makes business loans sense today more than it ever has before.

Let's get to the core of the solution, and then you'' see how that solution can fix your current financing challenges. This type of business operating loan is a revolving line of credit that is secured by inventory, accounts receivable, and other balance sheet asset accounts as may be applicable. (Typically those might be equipment and real estate in some cases)

Is there a size that seems to make the most sense when you contemplate such a financing. We have found through experience that clients that require at least a 250k/mo operating working capital requirement are the best candidates for this type of financing. There is virtually no upper limit on asset based line of credit financing in Canada!

We always come back to the word ' assets' in discussing the availability of this type of financing. On a day to day basis you monitor your receivables, inventory, etc and simply draw down against them. As you can see the facility fluctuates every day simply because each day your firm bills new customers, collects receivables from past sales, and purchases inventory and converts that product into a sale and resulting receivable. That whole process is known as your operating cycle.

Asset backed lending in Canada is a secured form of lending that grows as you grow. That's the main difference from a chartered bank line of credit, which typically has fixed limits and imposes all sorts of other conditions re rations, covenants, collateral, and personal guarantees on the business owners and managers. That's now that asset lending via bank line of credit is about in Canada.

The key qualification difference here is that a large amount of the approval process for this type of facility revolves around verifying your assets such as the quality of your receivables, inventory turns,, and your ability to ' scorecard' your business via proper financial reporting every month around receivables and inventory.

Does our solution make sense? We think it does if you are in one of several categories, including not being able to access bank credit, not being able to access enough bank credit, and if your firm is in a growth mode and has assets that can be financing for working capital needs.

Speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can guide you through the asset backed line of credit strategy for your firms survival, growth, and profit.


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 - Completed in excess of 100 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 & Contact Details :
http://www.7parkavenuefinancial.com


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


Article Source: http://EzineArticles.com/5604141

Asset Based Loans : A New Model In Commercial Financing & Business Credit

Asset based Loans – Our Version Of Genetically Modified Business Lines Of Credit

OVERVIEW – Information on asset based loans in Canada. Commercial financing solutions derive from the true value of your business assets

Asset based loans in Canada - from our perspective here in the trenches a great analogy of this type of commercial financing is that this type of finance is in effect ' genetically modified ' business credit. That expression is typically defined as something that has been altered using' engineering techniques'. Let's dig in.

When it comes to commercial finance in Canada our banks kind of lump your business into a couple of basic categories - investment grade, or middle market and SME Commercial. Early stage revenue companies or start ups are at the lower end of credit quality when it comes to SME COMMERCIAL FINANCE needs.

The reason your firm might qualify for more business credit than the owner/financial mgr might think all comes back to one word - assets. They become the true collateral in business borrowing - and there's quite often a huge difference in what you're eligible to finance relative to what your financial statements say.

The typical types of collateral are inventory, receivables, and fixed assets. In today’s more high tech world other assets can sometimes be considered - that might be things like patents, or rights or contracts, etc.

Things aren’t really as complex as some might think when it comes to asset financing. Some very basic formulas drive the entire industry. A quick recap of those formulas?

Receivables - 90% financing
Inventory - % of cost
Fixed assets - current sale/market values (typically achieved by a 3rd party appraisal)

Those 3 formulas compare very favorably when it comes to bank financing - that's of course because of the more conservative stance our banks take on the ability to value your assets. Commercial finance firms on the other hand tend to have more expertise (and time to spend) on understanding what your assets are truly worth.

Business credit lines that are achieved through asset based loans are a strong alternative to bank revolving credit facilities. Although they will cost more the immediate liquidity they can bring your firm is often a lifesaver in terms of growth and daily operational activities. Simply speaking, they help lessen the cash flow crunch!

If you're looking to understand more about our ' genetically modified' business finance commercial financing seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
.


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 - Completed in excess of 100 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 & Contact Details :
http://www.7parkavenuefinancial.com

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

Asset Based Lending : The True Package Deal In Business Credit Line & Loan Needs

Want To Get Back To Holding All The Cards In The Right Business Credit Line Search?

OVERVIEW – Information on how asset based lending delivers on business credit line needs. An ABL loan monetizes your assets into true borrowing power

Asset based lending delivers on the ability of Canadian business to secure the right type and size of business credit line that the company needs. Yet whether it’s a business loan or a revolving credit facility many business owners/ financial mgrs rarely feel that they are the ones who hold all the cards in securing and negotiating such facilities. Looking to change that? Let's dig in.

The rise of asset based credit lines has dramatically increased over the years, even though most experts agreed this form of financing has been around since the early 1900’s, starting in the U.S.

Asset finance is all about timing - it delivers on cash and working capital needs at a time when you need it most. That time, unfortunately is when traditional lenders such as Canadian chartered banks are, for whatever reason, cautious on your business or industry in general.

Asset based loans and credit facilities work best when owners/mgrs know what's currently wrong in the business and when failure is not an option.

What then is the essential difference between bank loans and the asset based loan. It's really quite simple. Banks require positive earnings, decent operating cash flow, and the ability of your company to meet various ' tests', more often than not called ' ratios'.

Asset based lending facilities? While costing more it recognizes your business has assets and the ability to move forward - those assets being able to be constantly liquidated and refinanced per your operating cycle.

While the final source of financing for some firms is getting new equity or ownership that's rarely the desired options for owners, who don't wish to dilute equity. Also, the facts are that smaller businesses in the SME Commercial area find it impractical, mainly because of their size, to rise outside financing.

When it comes to the business credit line your company needs it's important to distinguish between two words that might sound the same - ' Assets’... and ' Collateral'. While assets on the balance sheet might have a lower or higher value the asset lender focuses in on the real collateral value of your business - and then provides financing against that. When it comes to the business credit line those assets tend to be A/R, inventories, and even fixed assets that have no liens against them.

If you're looking for the ' true package' when it comes to business credit lines seek out and speak to a trusted, credible and experienced Canadian business financing advisor - helping you to get back to holding the cards in business finance negotiation.



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 - Completed in excess of 100 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 & Contact Details :

http://www.7parkavenuefinancial.com

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

Business Financing In Canada: Growth Finance & Turnaround Options

Looking For A Business Financing Lifeline?

OVERVIEW – Information on business financing options in Canada. Whether your company requires turnaround or growth finance solutions it’s critical to understand these basics

Business financing in Canada
can be a mixture of both challenging turnaround situations as well as growth finance challenges. It's safe to say that companies grow, and decline for many different reasons. We're examining the whys and some of the ' lifelines’ around both of those situations. Let's dig in.

When you're looking for a turnaround in your business finances it's typically a ' running out of funding' situation. Many of these types of scenarios are temporary, in other circumstances long runs of not profits or cash flow lead to a non survival situation.

There are always different sources of capital and working capital for a business - they might include A/R financing, commercial banks, asset based lending solutions, equipment financing, etc. Internally businesses should never forget that even relations with suppliers can dramatically affect their cash flow.

Canadian chartered banks are often criticized for their lending practices to Canadian firms who are new or in the SME COMMERCIAL sector. We won't weigh into that argument other than to say that it often becomes difficult for a company to replace a lost funding source such as their bank relationship. Many firms access Asset based finance solutions such as factoring or inventory finance when their bank relationship ' dries up'. Firms in the retail industry rely heavily on some method of financing their key asset - inventories.

Growth finance also brings many of the same challenges as turnaround needs. That same need to financing inventory and receivables comes out of the need for businesses to financing working capital around their current assets - again it's all about A/R and inventory.

One top expert uses the term ' reputation' financing versus asset financing. In a traditional banking relationship it's all about that relation between your company and the bank - if you can satisfy banks on profits, cash flow and clean balance sheets its all systems go.

When that ' reputation' becomes tarnished out of the inability to satisfy traditional financiers it all comes back to asset based lending solutions Asset based lending solutions such as non bank credit lines or A/R Financing keep your business going until you get past historical difficulties or until the high growth you might be experiencing ' smoothes out' a bit.

Asset lenders feel very comfortable with the assets they finance - and the company benefits by getting the true financing they need to... you guessed it, survive and grow.

If you're looking for a business financing ' lifeline' seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can identify and provide the turnaround or growth finance solutions you need.


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 - Completed in excess of 100 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 & Contact Details :
http://www.7parkavenuefinancial.com




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

SR ED Tax Credits Loan Financing In Canada

Connecting The Dots In SR&ED Loan Financing In Canada : How Your Tax Credit Becomes Cash

OVERVIEW – Information on sr ed tax credits loan financing in Canada. SR ED tax credits loan financing monetizes your r&d capital investment . Utilize sr&ed finance loans to accelerate cash flow and recoup your investment in r&d

SR ED Tax Credits loan financing in Canada is all about ' connecting the dots ' in the process to recoup your R&D capital investment. That ability to understand the SR&ED process is somewhat best achieved by understanding how those ' dots' are connected.

Recouping a solid majority of your costs in the investment your firm has made in innovation in products and processes is what Canada’s Scientific Research & Experimental Development (hence the term ' sred’) is all about.

Whether your firm is a start up, emerging, or middle market private company in Canada the cash you spend in R&D probably plays a large role in your business financing mgmt challenges.

So what then is the ' game plan ' in SR&ED finance loans? Naturally it's all about ensuring you have a quality claim submitted in hopefully a timely manner. The ability to satisfy Canada Revenue Agency's requirements starts with your selection of a qualified SRED consultant to prepare the claim. We would add the reputation and quality of that persons work certainly aids in financing your claim as it simply adds credibility.

A large majority of Sred claims are eligible for a cash refund - hence the ability to finance your claim. (Some incentives require that you reduce your taxes payable with your claim). That refund can of course be used for any general company purpose, including more R&D to keep your company competitive.

Why then does financing your refund make sense? The basic reason is pretty simply - Your SR&ED refund is just that, a refund that is not repayable to the government. Thousands of firms therefore take advantage of the program and receive billions (that’s billions with a ' b'!) every year. So financing your claim does one simple thing. It accelerates your cash flow refund.

How does the SR ED tax credits loan financing strategy work ?It's a quick and efficient process involving submitting a standard application to finance as well as a copy of your actual SRED submission . Part of our ' connecting the dots' analogy involves how the different parties in an R&D refund work. Along with our aforementioned SR ED consultant your accountant is actually responsible for including the claim in your annual tax return. That starts the clock ticking for your refund.

How then does the loan work? It's essentially a ' bridge loan ' - with typically 70% of your total claim being turned into a loan with no set payment terms. The 'no monthly payments' scenario is finalized when the govt processes and sends your refund. At that time you of course receive the balance of your refund, less financing costs which have accrued over the ' waiting period'. That waiting period involves standard processing times by CRA, as well as the potential that some claims are reviewed from a financial and technical perspective.

If you're focused on speeding up cash flow and recouping a large part of your R&D investment consider SR&ED finance loans as a winning strategy - 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 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 - Completed in excess of 100 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 & Contact Details :

http://www.7parkavenuefinancial.com


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