Lender Finance - Lending Power For Changing Needs

Funding For Lenders - Lender Loans Financing Solutions 

 

Like most firms with a specific financial offering to your clients, you want to ensure you have a customized lender finance solution to your ongoing capital needs. The ability to grow a financial firm as in  either the consumer or commercial space while maintaining flexibility is Job 1!

While  lending by banks, such as our Canadian chartered banks or traditional insurance companies might be the obvious choice for low-cost capital, numerous factors might prohibit your firm from accessing bank credit facilities.  The 7 Park Avenue Financial team will ensure a solid understanding of your current portfolio and future needs - in a business that is all about liquidity, we will take the time to understand your product offering and business model around its assets/loan receivables

Specialty Finance / loan provider opportunity  has never changed so fast and so quickly when it comes to who is a lender in these times  - Whether it's a global financial crisis or a Pandemic or changing technologies finance companies are constantly challenged - they want flexibility in capital and interest rates commensurate with their overall credit quality. Companies such as your want to unlock portfolio value, maximize liquidity, and grow!

 

THE LENDER FINANCING PROCESS

Typical funding needs revolve around either a revolving operating facility or a term loan structure - what makes sense for your firm .. or is it time to change and re-evaluate your current funding model. In some cases, it might be taking our current private investors or creating a partial liquidity event for owner/ owners.  In all cases, it's the collateral value of the present and future portfolio that will drive your funding capability.

 

WORKING THROUGH THE LENDER FINANCE PROCESS

 

The ability to demonstrate collateral value in our portfolio will maximize funding eligibility. Monetizing current facilities allows for additional funding to allow the portfolio to grow via your current and prospective marketing strategies.

 

ARE YOU FINTECH?  TRADITIONAL LENDER?

 

Over a period of time  2 major classes of finance companies have emerged in the Canadian landscape. We can broadly characterize them as ' Fintech' or Traditional. Which one is your firm? No doubt both models employ and capitalize on numerous online marketing activities.

 

In some cases, management might be considering an equity investment  - in other cases, a more traditional term loan structure that has defined minimum drawdown of approved facilities and repayment structure to your business model and cash inflows.

 

The other major alternative to a term loan structure is revolving facilities. The revolving facility's appeal is the ' pay for what you use ' business model as you generate loan growth knowing you can increase profitability with the confidence of a line of credit backing loan growth in your facility - versus fixed-term loan payments on a senior loan scenario.  Whatever model you chose will allow your company to grown and maintain portfolio equity.

 

EQUITY OR DEBT  

 

The aforementioned equity option, by its nature, is a more costly  form of business capital, thereby giving up your firm's stake in future profits as the portfolio grows or matures. Business financing is a constant balancing risk, though, and equity will always enhance traditional borrowing power. Sources of funding can best be summarized as combinations of owner equity/commercial finance facilities from non-banks or traditional bank funding.

In some cases your firm may be looking to merge with or acquire another firm , or you may be starting a finance business and looking for both a working capital component as well as loan book funding.

 

 

 

UNDERSTANDING THE BASICS -  YOUR LENDING FINANCE SEARCH

In the current low rate environment of the North American, even global economy, the offering of all-time fixed low-interest rates has tremendous appeal to commercial borrowers seeking lender finance solutions. That ability to still pick either a revolver or loan provides maximum repayment flexibility.

WHAT TYPE OF FUNDING DOES YOUR COMPANY PROVIDE?

 

The explosion in business and consumer financing services for Canadian borrowers as well as the partial exit of the ' bank lender '  has created  a broad competing playing field for :

 

Short Term Working Captial Loans

Merchant Advance

Accounts Receivable / Factoring

Refundable Tax Credits ( SR&ED/Film/Mining)

Equipment Financing

Asset Based Lending

Non franchise Automotive

Online / Peer To Peer / prime and subprime credit quality

SAAS / Recurring Revenue

Strata/Condo Financing

Captive Retail Finance

Other ' Esoteric '  Specialty Finance Providers!

 

TALK TO 7 PARK AVENUE FINANCIAL ABOUT YOUR FINANCING NEEDS

You are looking for specialty finance expertise and insights into solid funding possibilities whether your firm is early-stage or mature. If lenders have the management team, business processes, and a track record of portfolio performance we want to help you grow. Borrowing from non-bank regulated capital allows your firm to be more creative in its market offering.

We want to be a proactive partner in your lender finance needs. Our long-term track record in business financing success and our understanding of different business models will help ensure you can access growth finance in your portfolio. In lender financing, it's all about leverage and access to capital to fund future growth.

Seek out and speak to 7 Park Avenue Financial, a trusted, credible and experienced business financing advisor who can assist you with lender loan solutions that fit your business needs.

7 Park Avenue Financial :

South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com

Click Here For 7 PARK AVENUE FINANCIAL website !



7 Park Avenue Financial provides value-added financing consultation for small and medium-sized businesses in the areas of cash flow, working capital, and debt financing.



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. He is an experienced

business financing consultant

.

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 financing 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.


Click here for the business finance track record of 7 Park Avenue Financial




Stan Prokop
7 Park Avenue Financial/Copyright/2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lender Finance | 7 Park Avenue Financial

Start Up Sources Of Finance In Canada: Early Stage Sources Of Funding & Financing Is Your New BFF

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Is Start Up & Growth Financing Keeping You Up At Night

 

Start-up sources of finance in Canada easily keep the business owner/entrepreneur up at night.  Let's dig in.

 

WHAT IS THE CHALLENGE OF EARLY STAGE FINANCING

 

Is anything more uniquely challenging than the financing needs of a startup? Is it even possible that early-stage financing could turn out to be, as they say, your new BFF? Nothing is truer than the fact that capital acquisition chances are less certain in an early-stage environment. A traditional bank loan from financial institutions such as banks and credit unions is a major challenge in the source of funding solutions.

HOW DO YOU BALANCE DEBT AND EQUITY OPTIONS

The key to understanding the ' capital raise' is ensuring your business has a suitable match of debt and equity.  When you are up and running, the good news is that many capital sources to monetize assets and sales are fairly plentiful. They typically include debt and asset monetization vehicles that allow you to generate internal cash.

 

 

LET 7 PARK AVENUE FINANCIAL SHOW YOU THESE FINANCING SOLUTIONS

 

Those typically include:

 

PO/ Contract financing

 

Monetization of SR&ED tax credits - these bridge loans are a great way to cash flow refundable tax credits under the govt R&D program for those that file claims

 

Receivable Financing / Inventory Finance / Confidential  Accounts receivable funding

 

Asset-based credit lines that turn receivables/inventory/hard assets into on single business line of credit

 

Those 4 methods are ' asset monetization' strategies - also available is debt in the form of a Government small business loan or a working capital term loan from Canada's crown corp. bank.

 

Many business owners, some of whom are ' newbies,’ are not 100% sure of the amount of financing they require, much less they could get approved for. Potential clients, we meet who state ' as much as we can get ' requires... well... you guessed it... a lot of work.

 

DO YOU NEED A BUSINESS PLAN FOR STARTUP FUNDING?

 

A good business plan is almost always a requirement in startups - 7 Park Avenue Financial business plans we prepare for clients meet and exceed bank and commercial lender requirements.

 

The proven way to calculate the amount of start-up financing you need is to prepare a proper opening balance sheet and cash flow projection. Properly complete, it will give you a strong handle on the inflows/outflows and, most importantly, the timing of the funding you will need - either in term debt for new assets or business credit line needs.

 

Sales typically drive cash flow needs, so being realistic in your forecast is key. An old mentor of ours once said, ' I NEVER MET A PROJECTION I DIDN'T LIKE.'

 

  

WHAT IS THE IMPORTANCE OF MANAGING WORKING CAPITAL AND ASSET TURNOVER  

 

Can a realistic, even conservative projection fail? It can if it doesn't allow for the timing of working capital flows. Businesses in the SME sector can generate a lot of cash, more than they might think, by properly managing receivables, payables and utilizing sources of funds such as equipment leasing. It's then that the owner/manager must consider external capital. And as expensive as debt might seem too small or emerging businesses, it’s always cheaper than diluting ownership equity.

 

GOING THE BIG BOY ROUTE? FINANCING FOR ENTREPRENEURS

 

Forget the somewhat painful journey of start up business grants ,venture capital, VC firms,  angel investors, venture capitalists' equity demands, and focus on real-world solutions for a new business in Canada. These financing sources are looking for high growth and traction that exists already.

 

FOCUS ON REAL-WORLD AVAILABLE SOLUTIONS / FUNDS FOR STARTUPS

 

At the seed stage, it's all bout the right amount and type of debt and your ability to monetize sales via effective cash flow solutions. Over a period of time, the entrepreneur will realize this journey is for the smallest amount of businesses. Make sure you understand the dilution of equity and ownership that comes with those types of finance sources.

 

CONCLUSION - FINANCING A STARTUP

 

If you're searching for the right amount of start-up, growth, and early-stage financing for your businesses, seek out and speak to 7 Park Avenue Financial,  a trusted, credible and experienced Canadian business financing advisor who might be the bridge to your new BFF - solid start-up sources of finance - someone who will be able to help you fund your business.
7 Park Avenue Financial :

South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com

Click Here For 7 PARK AVENUE FINANCIAL website !



7 Park Avenue Financial provides value-added financing consultation for small and medium-sized businesses in the areas of cash flow, working capital, and debt financing.



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. He is an experienced

business financing consultant

.

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 financing 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.


Click here for the business finance track record of 7 Park Avenue Financial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Start Up Sources Of Finance Early Stage Financing |7 Park Avenue Financial

A SR&ED Credit Loan: Financing SR ED Tax Credits Accelerates Your Cash Refund

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Financing SR ED (SR&ED) tax credits is the finality of filing a SRED claim in Canada. So the question that remains to be asked is, ' Does it pay to finance your refundable credit under Canada's most popular research refund program? Let's dig in.

 

DOES IT SEEM THAT EVERYONE IS ALWAYS TALKING ABOUT SRED?

In recent years, the program has been a moving target by the government, whose goal was to maximize and simplify the program for Canadian businesses to achieve the benefits for which the program was originally derived.

 

HERE IS SOME HISTORY AROUND SRED

To understand the benefits of financing your SR&ED credit, it's necessary to step back and understand the origins and intent of the program.    In reality, the program has been around for almost 30 years now. While the program's name is somewhat daunting (‘SCIENTIFIC RESEARCH AND EXPERIMENTAL DEVELOPMENT”), business owners and managers tend to call the program  " S R E D '!

 

IS YOUR CLAIM ELIGIBLE

 

The actual preparation of your claim is very much tied to success in financing your claim. We would maintain it's much easier to finance your refund than prepare it!  It is up to the owner/manager to ensure that the refund claim they prepare is ' eligible ' under Canada Revenue Agency (‘CRA’) guidelines.

 

THE ROLE OF INDUSTRY SR&ED CONSULTANTS

These days probably 99% of all claims are prepared by the folks known as 'SRED consultants ' - these people are typically steeped in either industry or actual program experience, many of whom have worked for CRA in the past. A part of the ' turmoil ' in recent times, some of which has led to financing confusion of claims, relates to how these consultants who prepare claims are compensated. That compensation relates to the contingency fees that have consultants prepared those claims at their own cost, risk and expense.

 

SR&ED CONSULTANTS TEND TO WORK ON CONTINGENCY

That compensation was one of the main reasons the Govt undertook a few years ago to revamp the program fairly. Some previously eligible expenses were cut back; businesses must now identify who is preparing their claim and how they are paid, etc. Additionally, some key aspects of the program - i.e. the ability to claim capital equipment purchases used in research were eliminated.

 

It's pretty clear now that to be successful in financing SR ED tax credits and obtain a SRED credit loan, the quality of your claim is key. Business owners and financial managers using qualified and credible/experienced consultants will continue to benefit from the program.

 

HOW DO SR&ED LOANS WORK

 

That brings us to our key question - recognizing the benefits of the finance of a SR ED refund. That one benefit - Accelerated cash flow. SR&ED tax credits around your claim are typically financed at  70% '  loan to value '- meaning simply that, for example, a 200k refund would provide a loan of  140k. 

 

Loans must, of course, be repaid! But SR&ED financing is done via a bridge loan with no payments required for the loans' duration - another key benefit. When your claim is approved and funded by the govt, you receive the 30% remaining balance immediately, less financing costs.

 

SR&ED CRA  BRIDGE LOANS CAN BE CREATIVELY TAILORED TO YOUR BUSINESS NEEDS

 

While the govt was busy re-doing the program a bit, the SR ED financier has also been working - to add even more creative features to the cash flowing of your claim - these include facilities such as a SRED credit line and even the financing of next years claim around those r&d tax credits .. Today!

 

CONCLUSION

Want to know more about  ' car sr&ed ' and funding your research and development sr ed tax credit? So, if you want to be like or business owner who has found it does pay to finance your SR&ED refundable tax credit seek out and speak to  7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can assist you with your  SRED credit loan needs with a viewpoint to maximizing cash flow and r&d expense recovery.

7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com

Click Here For 7 PARK AVENUE FINANCIAL website !



7 Park Avenue Financial provides value-added financing consultation for small and medium-sized businesses in the areas of cash flow, working capital, and debt financing.



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. He is an experienced

business financing consultant

.

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 financing 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.


Click here for the business finance track record of 7 Park Avenue Financial

SRED Credit Loan Financing SR ED Tax Credits |7 Park Avenue Financial

Financing Businesses In Canada: Recognizing Early Warning Signs For A Business Plan Requirement

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What Types Of Canadian Business Financing Require A Business Plan

 

YOUR COMPANY IS LOOKING FOR BUSINESS FINANCE & BUSINESS PLAN HELP

NEED A BUSINESS PLAN FOR FINANCING - LET 7 PARK AVENUE FINANCIAL WRITE YOUR PLAN

You've arrived at the right address! Welcome to 7 Park Avenue Financial

Financing & Cash flow are the biggest issues facing business today

ARE YOU UNAWARE OR DISSATISFIED WITH YOUR CURRENT BUSINESS FINANCING OPTIONS?

CALL NOW - DIRECT LINE - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs

EMAIL - sprokop@7parkavenuefinancial.com

7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Oakville, Ontario
L6J 7J8

 

Financing businesses in Canada may or may not require a business plan proposal. When do business plans make or break your firm's financing objectives, and are they required at all? What are the risks of not having a plan when you need one? Let's dig in.

 

WHY DOES YOUR COMPANY NEED A BUSINESS PLAN? NEED BUSINESS PLAN HELP?

 

Business owners and financial managers typically associate business plans with funding requests. Done properly, the document reflects the type and amount of funding you need (for example - capital expenditures / buying a business, etc.), potential future financing needs, what banks and other lenders (commercial finance companies, etc.) call the 'use of proceeds. Business plan writers such as 7 Park Avenue Financial understand your needs when this type of document is required.

 

  

FINANCIAL PRESENTATION IN A BUSINESS PLAN IS KEY - LENDERS LIKE TO SEE REPAYMENT!  

 

Additionally, a proper document will include how the loan or financing needs fit your business's overall working capital and cash flow needs. It sometimes is forgotten that the lender is fixated on one thing - getting repaid!

  

CASH FLOW PROJECTIONS ARE KEY  

 

While many plans we see focus on the past and present, it's always critical to integrate your financing into the future - reiterating how debt will be repaid, etc. Time periods for repayment are important also, as you want to demonstrate things like timing of cash flows, cyclicality in your business, temporary 'bulges' of sales and cash flow.

 

A sense of urgency is not the best theme to have in your business plans. That's when the ability to anticipate future financing needs properly helps your proposal stand out more legitimate. Financing under pressure seldom works - dire straits financing is certainly achievable - but not recommended as a strategy!

  

DOES A STARTUP NEED A BUSINESS PLAN? 

 

Startups definitely need a business plan! Start-up business financing almost always requires a proper business plan. Here capital and funding are typically more costly as it's associated with more ' risk ' - so your ability to have a clear, sound business plan reflecting realistic potential success is desired. Certain industries are occasionally out of favour - if that's the case, even more care is needed.

 

WHEN IS A BUSINESS PLAN REQUIRED? WHEN ARE BUSINESS PLANS RECOMMENDED?

 

Here's a quick recap of some of the main types of Canadian business finance solutions - highlighting a more clear need for when you might best consider the need for a business plan

 

A/R Financing - not required

 

Inventory Financing - not required

 

Government SBL Loans - required/recommended

 

Term loans - Recommended.

 

Acquisition Financing - Required/recommended.

 

SR&ED & Film Tax Credit Financing - not required

 

Franchise Financing - Required and recommended.

 

Working capital term loans - Recommended.

 

  

 

7 PARK AVENUE FINANCIAL PREPARES BUSINESS PLANS AT A REASONABLE COST AND WITHING YOUR NEEDS TIME FRAME!

  

 

The cost and time in preparing a business plan that reflects your funding needs is more reasonable than most owners imagine. Seek out and speak to 7 Park Avenue Financial,  a trusted, credible and experienced Canadian business financing advisor who can ensure your plan is cost-effective and works. It will include an executive summary, strong cash flow projections, and details on your management team and marketing plan. Bottom line? We know your required format of a business plan relative to your needs.

 

Small businesses always benefit from proper business planning/business plan services. The business owner/ financial manager should always be on the lookout for those 'warning signs' that a good business plan proposal is required - one that reflects that your company merits and deserves the financing it needs to start /operate/grow, or acquire a business. Can your firm benefit from our business plan writing service.

7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com

Click Here For 7 PARK AVENUE FINANCIAL website !



7 Park Avenue Financial provides value-added financing consultation for small and medium-sized businesses in the areas of cash flow, working capital, and debt financing.



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. He is an experienced

business financing consultant

.

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 financing 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.


Click here for the business finance track record of 7 Park Avenue Financial



Stan Prokop
7 Park Avenue Financial/Copyright/2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Plan Proposal Financing Businesses Canada | 7 Park Avenue Financial

Tax Credit Loans For SR&ED Credits In Canada: Finding Your Way In SR ED Financing

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What Seems To Be The Problem Here? SR&ED Tax Credit Financing Explained – Finally!

SR&ED Debt Finance Loans In  Canada for SR&ED Tax Credits - Canada's R &D refundable credit system seems to pose challenges for some clients looking to monetize, via SR ED financing, their SR ED claims. Does there have to be a problem? We don't think so. Let’s dig in.

  

UNDERSTANDING THE GOVERNMENT OF CANADA'S SR&ED PROGRAM   

Of course, SR&ED credits are available via the governments ' Scientific Research and Experimental Development Tax Credit program.  Although federal budgets in recent years have changed the program significantly from the viewpoint of streamlining the process, certain portions of the allowable refund were also cut back, i.e. capital expenditures relating to the actual R&D capital investments your company makes.

  

IS A SR&ED LOAN REALLY DEBT FINANCE?  

The term debt finance is really a misnomer, as no debt comes on the balance sheet when you monetize your sr ed claim via 7 Park Avenue Financial  - in effect you are financing an account receivable, with your client being the federal and provincial government - that receivable is turned into cash loan proceeds.

 

The irony of SR&ED is that many, in fact almost all banks don't recognize sr&ed receivables - they view your claim as an ' intangible asset ' in many cases which is partially understandable but certainly less so if your firm regularly files claims.

WHO PREPARES  SRED CLAIMS?

In Canada, the majority of tax credits/claims are prepared by independent consultants - they are known as ' sr&ed consultants'.These sr ed claims are filed, of course, in conjunction with your year-end tax return.   Retaining a good preparer for your claim is one part of the financing process of a claim. In the past couple of years, a lot of focus was placed on the way consultants bill and prepare claims - the majority of which are on a ' contingency' basis, which in hindsight probably caused some bad behaviour by a small few.

WATCH YOUR DEADLINES!

We encourage all clients to consider whether they are eligible for the SR&ED  refundable tax credit and focus on filing the claim promptly as there are some deadlines in place under the program.

 

BILLIONS OF DOLLARS ARE REFUNDED TO CANADIAN BUSINESS ANNUALLY UNDER SRED

 

Refundable credits return billions of dollars to Canadian corporations each year.  Your ability to cash flow or monetize your claim makes the program complete in some way. Your company is in effect ' fast-tracking ' the cash flow return to your company by filing and financing your claim.

  

HOW DOES A SR&ED BRIDGE LOAN WORK?  

How then are the claims financed? It certainly doesn't have to be problematic if you have some expertise backing the process.  A simple business application starts the whole process - typical info needed here is a copy of your claim, information on who prepared it, as well as your business financials.

 

WHAT IS THE COLLATERAL REQUIRED FOR A SR&ED BRIDGE LOAN?  SPOILER ALERT - IT'S  YOUR SR&ED CLAIM!

We note here that many firms that complete claims range from start-ups to firms that are still in the early stages of revenue. So it's important to understand that the key collateral under SR&ED financing is fact, just the claim itself. In effect, you've created a (government) account receivable and are only financing /monetizing that specific A/R.

  

CONSIDER A SR&ED CREDIT LINE TO PRE-FUND YOUR CLAIM  

The newest trend in tax loans for SR&ED financing is the ability of your business to, in effect, pre-finance your claim - you are reimbursed for funds you are spending during your spend. That fast tracks the return of R&D capital even faster.

  

CONCLUSION  

Does your firm qualify for sr&ed finance? If your firm makes investments in research and development and if you're looking to avoid any ' problems ' associated with financing SRED CREDITS, seek out and speak to a trusted, credible and experienced Canadian business financing advisor at 7 Park Avenue Financial and let us help. Our specialty is helping you fund refundable tax credits -  The probable result - Problems gone!

7 Park Avenue Financial provides value-added financing consultation for small and medium-sized businesses in the areas of cash flow, working capital, and debt financing.



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. He is an experienced

business financing consultant

.

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 financing 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.


Click here for the business finance track record of 7 Park Avenue Financial



Stan Prokop
7 Park Avenue Financial/Copyright/2021

SR&ED Financing: Everything You Should Know About Expert SR ED Claims Finance

ARE YOU TAKING ADVANTAGE OF SR&ED PROGRAMS AND THE ABILITY TO FUND YOUR CLAIM?  WHAT IS SRED?

 

SR&ED Financing easy?  Some clients we meet actually have a tough time buying into the fact that SR ED claims finance is not complicated. The bottom line? We think we can show you 'innovation finance’, i.e. SRED FINANCING is not the challenge you might think it is. Let's dig in.

 

Any business in Canada that files a SR&ED claim under the sr ed program does so, for the most part, to take advantage of the incentive that the Canadian government provides for a refund of a significant portion of your research expenses. And in Canada, every year, that covers thousands of businesses for Billions of dollars.

 

CRA ADMINISTERS THE CLAIM

 

Your claim's actual financing is more dependant on your firm, what you do, and who you work with instead of the good folks who administer and approve requests at Canada Revenue Agency.

 

CHANGES IN SR&ED

 

So while we can talk ( argue ? ) all day about the merits of the program, its recent changes in the last year or two, simply speaking, the onus is on  Canadian businesses who choose to participate in the program to maximize and recover their ' spend ' on salaries,  applicable overheads, etc. In years, machinery and equipment were under that umbrella, but recent legislation changed the SR ED credits' equipment component.

 

The program's heart is the fundamental premise that claims prepared properly under new claim submission rules can recover funds via applications submitted by Canadian private companies and even proprietorships. (Most companies that file and finance SR&ED claims, though, are clearly private incorporated entities.

 

MANY COMPANIES IN CANADA SPENDING ON R&D CAPITAL INVESTMENTS ARE NOT FAMILIAR WITH THE PROGRAM

 

Most people don't realize that the program has been ongoing since way back into the mid '80. Clients we meet who are now taking advantage of the program and heard about it late... well, sorry about that.

 

  

THE ROLE OF YOUR SR&ED CONSULTANT  

 

While the SRED program has changed and been tweaked over the years, we point out to clients that SR ED claims finance has, in fact, not changed. Yes, of course, a bit more scrutiny is in place around who prepares your claim (‘ SR&ED CONSULTANTS '  are the folks that prepare and attempt to maximize your claim )  sred financing has, in fact, gotten more competitive and creative.

  

YOUR CREDIT IS NOT A GRANT - ITS A REFUNDABLE AND FINANCEABLE RECEIVABLE!  

The actual tax credit itself is a refundable claim, not a ' grant. 'So as such, your claim in effect becomes a legitimate ' account receivable ' of your business, with the client around that receivable being fairly creditworthy - i.e. the Canadian government and its tax credit program. Your claim is filed with your year-end business return, but by the way, clients can fund their request before filing!

 

HOW DOES A SR&ED BRIDGE LOAN WORK?

 

How then are claims financed, and what are some recent innovations in financing SR&ED. Typically your requests are financed at 70% loan to value, and the actual financing is structured as a bridge loan with no payments. When your claim is " finally ' approved by the government, you receive the final 30% of those funds, less financing costs. The benefit is clear - you have  ' cash flowed' your R&D capital investment.

 

CONCLUSION

And oh yes, those recent changes in innovating finance around SR&ED? Many claims that have a good track record in the past can now receive financing before filing your claim for the tax credits.

 

If you are looking to ' fast track '  and cash flow your investment in R&D, seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with red refund claims and a finance strategy and funding that make sense.

7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com

Click Here For 7 PARK AVENUE FINANCIAL website !



7 Park Avenue Financial provides value-added financing consultation for small and medium-sized businesses in the areas of cash flow, working capital, and debt financing.



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. He is an experienced

business financing consultant

.

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 financing 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.


Click here for the business finance track record of 7 Park Avenue Financial

 

SR ED Claims Finance SRED Financing | 7 Park Avenue Financial