What Are the Three Types of Financial Statements? Which One Suits My Firm Best?

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Business owners will find out at some time in the business history, (usually early on!) that they require financial information to satisfy essentially two bodies - shareholders/management, and, secondly, lenders!



There are essentially 3 types of financial statements:



Audited

Review Engagement

Internal



Audited Statements - Companies who require audited financial statements. Why does a company require an audited financial statement? Business owners quickly realize this type of statement comes with a very significantly higher cost. So why the need? The best way to describe the need is that there is an important interest in the company, and that interest comes from an owner /shareholder, or lender. The audited statements report to those two parties and validate that the auditor, an independent third party, is saying that the financial represent the true picture of the company, and if there are any serious inadequacies then those are pointed out.

Any ' inadequacies' relate to GAAP, which, stands for Generally Accepted Accounting Principles '. Let's use a quick example. There are primarily two methods that corporations use to count and record inventory. If the company was using an alternative method, the auditor would point out that the GAAP is in effect being broken. That's a quick simple example. We are most familiar with public companies requiring audited financial statements.

That is because a public company has usually thousands of investors. They, 99% of the time, don't get to meet management or see the company. They rely on the audited financial statement to reinforce the credibility of the financials. Audited statements are costly and time consuming to prepare, and require significant company and auditor inter-action. However the importance of the audited statement can't be over emphasized.

Review Engagement Statements - This type of financials statement ranks 2nd in the hierarchy of financial statements.

(Audited is # 1!). Review Engagement Statements are prepared by a 3rd party accountant; however they come with only 3 basic elements to them.

1. The accountant should have a ' reasonable knowledge of the company'
2. His questions, comparisons, and discussions should provide an inference that the financial statements seem reasonable
3. The statements should be presented in a manner acceptable to GAAP ( even though individual accounts aren't checked )

Internal Financial Statements - These are exactly what are inferred. They are financial statements prepared internally for management, or for monthly reporting to their bank. We can essentially say that management or the third party accountant simply collects information, summarizes it, and notes that information is somewhat restrictive in nature as it lacks the additional due diligence in Notice To Reader and Audited statements.

In summary, there are 3 times of financial statements. They are given various weight and significance based on who prepared them, and how, and under what standards of accounting competency. A start up firm might start its history with internal statements, as the company grows it would be required by lenders and other stakeholders to prepare Notice to Reader Statements. As the company grew very large, and went public perhaps the need to prepare Audited Financials would be a necessity.

Business owners and financial managers should continually be determining if the type of statement they currently prepare satisfies current needs, and management should also be looking at the next evolution in the company's financial reporting needs.



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

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 .

' 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/expert/Stan_Prokop/432698


Article Source: http://EzineArticles.com/3632297

Hungry For Best Equipment Leasing Rates ? Here's Our Recipe !

Looking For The Best Equipment Leasing Rates in Canada - Here's Who To Talk To !







Information on how Canadian business owners can access and achieve the best leasing rates in Canada . Knowing how asset finance and equipt loans work is key - here's why !

Savvy Canadian business owners and financial managers know that leasing is not always about price, it often should focus on issues such as structure, terms, covenants, etc. However, having said that, how does the business owner ensure that he is in fact getting a rate that is very competitive, if not ‘the best ‘that his firm can achieve?


Let’s look at the factors that affect lease pricing. Lease financing in Canada is a specialized industry, and we encourage clients to ensure they seek out and work with a trusted, credible, and experienced lease financing advisor in this area of acquisition financing.



So what factors affect your lease rates – first and foremost it is overall credit quality. But let’s review some of the inherent math of leasing to ensure you can make that overall credit quality work for you.


The overall amount of the asset you are financing affects the rate in many cases – larger transactions with higher credit quality also play a large component in the overall final rate. Lease financing in Canada can range from five thousand dollars to 50 million dollars and of course everything in between. The other key factor you should realize is that the term of the lease (in other words the length or amortization of the lease) is also a critical factor in final lease pricing. Longer terms tend to drive better rates. Why is that? Simply because the lease firm is locking in a guaranteed yield on the transaction, and when that yield is even longer in term that affects you’re pricing – usually for the better.


Realize though that in certain cases your overall credit quality of your financial may necessitate a shorter term being offered or approved. In that case lease pricing tends to go up. So a Canadian business who thinks they can get the best rate for a 2 year lease is often mistaken – lessors in Canada tend to prefer lease terms of three to five years.


Many of our clients are unsophisticated financially, so when it comes to lease financing and pricing them also do not fully understand how some structuring features in leasing affects their pricing. When you are asked to provide a lessor with either a down payment or a security deposit this increases the overall yield to the lessor – so you are laying out cash and financing less, therefore driving the rate up.


Utilizing a financial calculator (not a regular calculator) will allow you to exactly determine the exact rate you are being quote. By simply entering values for:


Term
Value of your deal financing
Monthly payment quoted
End of term obligation


Will allow you determine the exact rate you are being quoted.


If you think the rate is too high you of course have the option of calling every lease company in Canada, revealing your financial information, and negotiating a rate. By the way, we don’t recommend that! The best solution is to work with an experienced leasing specialist to ensure he or she feels you have a ‘competitive ‘best rate. THis dangers of doing that on your own are that your financial condition is quickly spread all across the industry, and secondly credit reports on yourself and your firm are potentially drawn and lowering your overall credit scores for your firm and yourself as a potential guarantor


We also advise clients that working with larger more established firms will generally drive the best rate for your transaction. Why is this? Simply because these firms themselves are funded in a more cost effective manner than small firms who are capitalized from private type sources.


In summary: rate of course isn’t everything, but it’s important. Understand the key elements of how a lease price is calculated; work with a trusted advisor to ensure you understand how your firm’s credit quality will be adjudicated. We also note that the type of asset and its overall collateral value play a role in your best lease pricing.


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

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 .

' 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

How to Pick a Trusted Financing Advisor

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Many business owners and financial executives want to ensure they can rely on an independent 'trusted' financing advisor when it comes to their business finances. How does one pick such an advisor? Naturally in today's environment business owners don't have time to waste, and if they have financial or growth challenges they are looking for someone that can bring expertise and solutions to their business.

We are constantly told that business owners are looking for a firm they can trust, respect, and has, of course, credentials.

We believe this whole area of developing a trust between the advisor and the company is a two way street. It is incumbent on the business owner to make sure the goals and needs of the company are made very clear. Business owners or financial managers should not blur the issues to the point that each party does not understand the goals and the respective roles.

When a trusted financing advisor is chosen he or she needs to be given access to the reins and information on the business and its challenges.

Business owners need to ensure that the specialist firm they are dealing with has experience either with the challenges they are facing, or the particular industry the customer is in. Many business financing challenges are industry specific, so this is not the time to be training and advisor on your business! Most people realize though that many financing challenges are somewhat generic in nature, so although an industry expertise is often helpful, it is clearly not always 100% required.

The business owner and financing advisor need to be able to have effective dialogue and communication on what the operational and financing issues are. Many times there are what we call ' warning signs ', yet in other cases companies are already clearly in trouble.

A financing advisor needs to be given information and clarification on issues related to:

- Sales

- Profits

- Current lenders

- Working capital issues

- Asset issues

- Future goals of the company

Naturally the above list is hardly all inclusive, but it is a solid start to the dialogue. The business absolutely has to have a handle on what the intermediate term goals are. Management needs to have a strong sense that the business advisor can assist in the recovery, and the advisor must be given the tools that he or she needs.

Both the business owner and advisor should have frank discussions around the probabilities of success and the timelines associated with that success. What's realistic, what isn't.

Business owners and financial executives should clearly check the background and experience of the advisor. References are of course highly recommended. Professional affiliations are of course important, but not critical. References from lawyers, bankers, and accountants are often excellent sources of information. The business advisor should clearly be indicating they have the right attitude and credentials around the business owners financing needs. It is certainly not unrealistic to have solid discussions around timelines and action items responsibility.

Ultimately business is of course people, so chemistry is important, and the business owner should have a sense they could work with the financing advisor. However, at the end of the day you don't have to like people to get the job done ( it certainly helps though!). Credibility and experience are ultimately always at the top of the list.

All engagements should of course be documented properly re success, work fees, etc. A credible business financing advisor will of course be willing to sign any required non-disclosure document.

In summary, a trusted business financing advisor is a valuable ' out of the company ' asset to any firm. Business owners and financial mangers should choose such an advisor carefully, and pay important attention to the qualities and capabilities that advisor can bring to the table, and ultimately, the firms success.




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

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 .

' 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/expert/Stan_Prokop/432698


Article Source: http://EzineArticles.com/3538272

SR&ED Financing : Your Cash Flow & Working Capital Solution For Your R&D Capital Investment Recovery

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Turn Your Sr&ed Claim Into Cash Today ? Here’s How!





OVERVIEW – Information on the benefits of sr ed financing in Canada . A Sr&ed loan allows companies to recapture working capital invested in the government tax credit program know as ' SRED'

SR&ED financing (also known as SR ED / SRED Financing) is a very positive working capital strategy to monetize now your SR&ED tax credit filing. Let’s dig in !

Canadian business owners who have filed SR&ED claims in the past are already aware of the great aspects of this program, under which the Canadian federal and provincial governments provide a non repayable grant to your privately owned Canadian company for your expenditures relating to improved products and processes.
The fact that you can recover a very significant portion of your salaries, materials, equipment and portions of overhead is in our opinion the best program in Canada as it relates to government actually really helping Canadian business.
Many clients approach us and ask about ‘government grants and loans ‘. While there are of course many such programs out there the SR&ED program is real money under a much defined process. And it is non repayable – that’s a good thing.

Let’s assume you are aware of the program, have filed claims, or are filing your first claim. The claim is of course filed at the same time you are filing you year end tax return. The claim can be prepared by yourself, but in our experience 99% of claims are best prepared by specialized consultants of your accountant.

So you have prepared a claim and you have filed it. Of course you can wait for your government refund cheque, but that process involves of course also going through the review of your claim by Canada Revenue and in some cases having a technical audit of your claim.

The government website indicates that depending on when you are filing, whether it is a first time claim, and if you are filing for multiple years that you can wait anywhere from 4 – 12 months based on some of the above noted factors. CRA in Canada has a specialized team that works in this area and clients tell us that the overall review of your claim is a fairly standardized process – naturally the overall quality and back up your provide to your claim helps finalize proper adjudication and approval .

Can you get cash and working capital now for your claim? Yes you can. Simply work with a trusted, credible and experienced business advisor in this area and immediate financing can be provided for your claim.


Clients ask what the basic process is over view to get your filed claim financed. It is a very basic process not unlike any standard business financing application. The basic steps are as follows “

-Complete an application – i.e. business details, your current company financials etc
-Provide details of your SR&ED claim

A term sheet can be provided in a matter of days, and claims are financed at generally 70% of the total value of what you have filed, i.e. the combo of the federal and provincial portions. Financing can take place, in our experience in a matter of 2- 4 weeks.

You can of course use your SR&ED loan funds for any general corporate purpose, and no payments are made during the loan period. The loan period ends when you claim is processed by Ottawa and you of course receive the other 30% of the claim at that time, less any financing fees.

Consider maximizing the Canadian SR&ED claim by turning your filing into immediate cash flow. That is a solid working capital strategy that assists your firm in growth and competitiveness.





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

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 .

' 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

Looking For A Gamechanger Strategy In Technology / Computer Financing For Your Company ? We've Got One!

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Looking For A Gamechanger Strategy In Technology / Computer Financing For Your Company ? We've Got One!

Information on computer leasing and technology financing in Canada - The right acquisition financing strategy in these types of assets is critical

Computer Leasing – the lease financing of business computers and technology is probably the best example of your Canadian business utilizing classic benefits of lease financing.

Why are Billions of dollars of computers and related technology leased every year – The answer is that the computer industry seems always in the forefront of new and leading edge technologies. As consumers we know in our home purchases how quickly we might be feeling that our technology for home computing is out of date, not fast enough, doesn’t have enough bells and whistles, etc .


The classic benefits of lease financing are generally known to most Canadian business owners and financial managers – they include the ability to upgrade equipment easily or at the end of a lease term. Many organizations, especially moreso if they are larger are not looking to spend large sums of their capital budgets all at one time on computer upgrades.

We refer to ‘ computers ‘ – but to be clear computer related financing includes everything you might be thinking of in a technology acquisition – that includes the actual personal computers, servers, mainframes if that is appropriate, application and operating software, as well as maintenance contracts and service contracts . The total dollars spent on computing power in any organization is always significant relative to the total of any company’s capital budget.


Additional benefits include the ability to contain debt on your balance sheet, remove debt entirely and still acquire your computing power ( operating leases do that ) and also you have the ability to influence cash flow via fixed or variable payments . Many customers choose to pay leases on a quarterly or sometimes even on an annual basis, although monthly tends to be the most popular method.


We have spoken of obsolescence, and also referenced the fact that computer and technology leasing is a classic ‘poster boy ‘for lease financing. That is because as technologies change you do not want to be locked into the inability to acquire more computing power for the same or less money. The author worked in computer financing for over 20 years, and whether it was dealing with the CFO of some of Canada’s largest organizations, to small start ups during the’ dot com’ era – all of these people recognized the power of technology financing .


Let’s illustrate via a simple but clear example -. You need to purchase 100,000.00 of computers and related accessories – Typically your monthly payment would be, over a 36 month term approximately 3100.00/ month.

If you had paid cash for the purchase you would probably find in two years you needed new computers – you have spend 100,000 in cash, you own old technology which is depreciating, and newer computers and software are being used by all your competitors to gain a competitive advantage .


What might you have done? What would an alternative business financing strategy be? Well , if you had leased the computers and structured the transaction as an operating lease here what you would do – you would return the computers to the lessor , order the new computers , and you payment would stay the same or in some cases be less !

And of course now you have regained competitive advantage in your marketplace if you place an emphasis on computer power, internal infrastructure, and access to your data, ET c


That is just one of many, many ways in which computer lease financing is a powerful financing strategy. Talk to an experienced business financing advisor who has credibility and experience in this type of financing – You will soon find your firm is also ‘leading edge ‘in 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

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 .



' 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

Secured Lending in Canada

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There are various types of secured lending in the Canadian business environment. Let's examine some of those secured loans and discuss some of their characteristics.

When most business owners or financial managers think of secured lending they are thinking in terms of their operating loans or operating lines of credit, sometimes called ' revolvers' in finance language.

These loans are used to financing working capital, primarily receivables and inventory. In taking and registering this security the bank or some similar financial institution will take an assignment of these 'liquid assets' of the company. On occasion customers will hear the term ' demand loan ' and we are in effect talking about the same thing.

How does the bank or other institution secure the loan? They register what is known as a General Security Agreement, commonly called a 'GSA 'against the business. In determining their security and overall all 'credit limit' with the customer they usually agree to advance against 75% of all good receivables, and some component of inventory. We can, as a general rule, say that banks don't really like inventory - simply because they aren't set up to liquidate on it when they have to.

If everything goes well that is as much as the business owner really needs to know. The loan is secured, the bank registers a public security against the company, and the company has access to working capital.

How does the Secured Lender realize on the security? Again, we are talking about the worst case scenario when a bank has determined it needs to 'call the loan ', terminology most business owners know too well but hope they never have to live through. The bank is in effect, at that time, attempting to crystallize on its loan. In securing the loan we spoke of the bank or other lending institution taking an assignment of the assets. Now that the loan has been called an actual assignment is enforced - customers are notified by the bank and monies are collected by the bank to reduce the loan outstanding. The bank now finds itself in a position of having to deal with the inventory they did not want to deal with, and we typically find that the inventory is directed to be sold by an auctioneer or salvage firm, who acts as a temporary agent for the bank.

When loans are enforced in such a manner the results are usually disastrous for the customer and have a major impact on the company's ability to go forward.

Lenders securities agreements in Canada are all registered under Canada's Person Property Security Act, and are in effect public knowledge for those that wish to investigate secured dealings. This process is very similar to the UNIFORM COMMERCIAL CODE (UCC) that exists in the U.S., and in fact the security legislation in Canada was very closely model to the U.S. way of secured lending notification.

There are other forms of secured lending Vis Vis equipment, debentures, and security is generally handled in the same manner re: registration, etc.





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

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 .

' 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/expert/Stan_Prokop/432698


Article Source: http://EzineArticles.com/3642236

SR&ED Financing In Canada : Accessing SR ED Loans

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How To Win The War On The Wait For Your SR&ED Refund

OVERVIEW – Information on sr&ed financing in Canada. The ability to finance a sred claim provides valuable closure to your r&d capital investment . That closure? Cash!

You have filed your SRED (SR&ED) tax credit . The benefits of this program can’t be overstated . Now all you have to do is wait for the cheque from the government, right ? Let’s dig in .

There is another option . As a Canadian business owner and financial manager you may have chosen to ‘ book ‘ your SR ED claim as an account receivable – money owing to you, that is non- payable , from the government . Some of our customers choose to book the claim as an asset/receivable, some choose not to, or in some cases they book a conservative estimate of their final cheque .

Assets can be financed – your SRED claim is an asset, and is in effect a receivable, somewhat longer in nature than you other receivables ( hopefully ). Those Canadian firms that have bank lines in place have probably realized by now that most chartered banks in Canada do not include your SRED claim as a true receivable .

So, can that receivable be financed and monetized ?? It absolutely can, via the process of SR ED financing . We hear more often than not the term ‘ factoring ‘ in business – which is, of course, the sale of a specific, or group, of receivables .

That’s what SRED financing is about . A carefully constructed SRED financing allows you to ‘ cash in ‘ – the finance people say ‘ monetize ‘ the SR ED claim . That’s valuable cash flow that might not have come into our working capital for many months, in some cases a year based upon the timing of your filing, the complexity of the claim, the technical audit, etc .

We strongly recommend to business owners that if they are looking to finance a SRED calim that they work with an experienced and trusted advisor in this area .

Whenever we meet with a client or business owner who wishes to inquire about our SRED financing work the company invariably wants to know several key things –

How does it work?

What does it Cost?

How much do I get on the claim?

What’s involved ?

When do we get our funds?!

Lets discuss those issues in a general way, we honestly think our comments will apply to almost 95% of SRED financing claimants . You want facts? We’ll give you the facts ! –

SRED 101 – Everything you wanted to know about SRED Financing, but were afraid to ask .Your SRED claim is sold/assigned to the financier - Similar to the factoring practice of selling a receivable you sell your claim for the purposes of getting the cash – it’s a sooner rather than later scenario ! SRED financing is a form of alternative financing, rates vary with the size and complexity of the claim, rates are higher than bank financing .

In our experience firms financing their SRED’s are totally focused on generating additional cash flow and working capital so they can continue to grow sales and profits. Claims are financed at approx 70% of their LTV. By LTV we mean loan to value, so a company filing a 300,000.00$ SRED claim would receive 210,000.00$. The balance owing to you, (less financing costs) is funded when the claim is finalized and paid by CRA – Revenue Canada.

Oh, and what’s involved? In our work with clients we maintain that a SRED financing is not unlike any other financing: an application, some backup information, some due diligence around your company and your SRED, then documentation, and you’re funded. We typically have been able to originate and complete financings for our clients in 2-3 weeks.

Bottom Line ? Sr&ed Financing is a viable and valuable alternate form for working capital financing in Canada! Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your tax credit financing needs .

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

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 .

' 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