Sunday, February 9, 2014

SR ED Claims Financing In Canada. Don !e " #ic im $% &'e (ai ing )ame in SRED "nd Film &a* Credi Incen i+es

,us -o. )ood Is /o+ie a* credi s , SR0ED 1rogram Claims Financing #ia !ridge 2oans 3 $#ER#IE( 4 In%orma ion on %inancing s red claims and %ilm a* credi incen i+es . &'ese credi s , %inanced 5ro5erly and in a imely %as'ion can 5ro+ide +aluable cas' %lo.

and .or6ing ca5i al o business o.ners in indus ry and 5ro7ec o.ners in media 8 %ilm9 +9anima ion:

SR0ED Claims %inancing and the finance of film tax incentives in Canada eliminate the

' victim' part of these two solid government programs. The' victim' part arises when a lot of work and effort and by Canadian business people leads them to ' waiting '

for their claims to be finalized and funded. Let's dig in.

Let's examine some key benefits in financing tax credits under 2 of the most popular programs in Canada SR0ED 8Scien i%ic Researc' and E*5erimen al De+elo5men : Film9Digi al9&ele+ision &a* Incen i+es !imilar to programs in the ".!. the Canadian government funds research via #$% tax credits. &ere's one case where the ' little guy' often benefits more than larger and sometimes publicly traded companies in Canada. 'rivate ( i.e. not publicly traded ) firms receive billions of dollars of funding in Canada for recovering a large percentage of the monies they spend on salaries* contractor cost and overhead as these relate directly to research. +hile the thousands of firms that receive funding might find their claims a little smaller these days (example, e-uipment purchases related to #$% no longer -ualify) the ' cash back ' benefit of the combined federal.provincial program can't be denied. 'rior to considering SR ED claims %inancing a tremendous amount of work* and some risk goes into claim preparation . /rom software firms to mfg companies all across

Canada third parties known as ' !#0% Consultants ' prepare and file claims. The ma1ority of claims prepared seem to be on a contingency basis* with the SR0ED consul an s bearing the risk in time and costs in your claim preparation. 2n return for that they typically take a fee of 34 567 of the total claim. 8aturally business owners also have the choice of simply paying for a -ualified !#$0% practitioner on a straight fee for service basis. +hile the government has clearly made things easier for claimants* i.e. Sel% assessmen ools o 'el5 guaran ee a55ro+al success Sim5li%ied and s'or ened online a55lica ion none of that takes the ' waiting' out of your cash refund. FI2/ &"; CREDI&S< /edia credi s in mo+ies, &# and anima ion* also under the auspices of federal and provincial programs* take a lot of the risk out of the task of financing pro1ects. Traditional bank type financing is difficult to achieve for smaller independent producers. The complex web of financing a pro1ect involves a lot of moving parts, 1re=selling your 5ro7ec Considera ion co=5roducers o com5le e %unding $.ner E>ui y 1roduc 5lacemen 9s5onsors ?)"1? %inancing 8a ? bridge? be .een 5roduc ion and %u ure sales 5o en ial:

&ave we forgotten anything9

+e sure have: 2t;s the generous %ilm a* credi incen i+es that monetize a large part of the costs of production of any pro1ect. 2n many cases of <6 467 of a -ualified budget can become a tax credit refund to owners. Claims are best prepared by experienced film tax credit accountants specialized folks who maximize claims. +hile some might argue there is little in common between producing an animated film versus striving for improvements in software* biotech* mfg* or robotics the one constant is the finance ability of either of these two programs. +hile owners can choose to wait for months * perhaps up to a year for recouping funds under either program they also have the option to ' cash flow' their a* credi s . &a* credi loans %or SR ED and /edia are financed very similarly. =ridge loans will advance typically @0A of the combined value of the federal and prov. claim. 8o payments are made during the loan period. +hen the government approves and funds your credit you receive the balance of the claim* less financing costs that are typically priced at ' mezzanine ' type rates. 2f you feel you can benefit from the immediate financing of film tax credit incentives and !# 0% pro1ects seek out and speak to a trusted* credible and experienced Canadian business financing advisor who can assist you in claim finance.

1.S. >es* it's true? claims can also be financed prior to formal submission to government bodies.

S an 1ro6o5 @ 1ar6 "+enue Financial <

' 5<99....@5ar6a+enue%inancial.com

=usiness financing for Canadian /irms * specializing in working capital* cash flow* asset based financing * 0-uipment Leasing * franchise finance and Cdn. Tax Credit /inance . /ounded 266< Completed in excess of @6 Aillion B of financing for Canadian corporations . 2nfo .Contact ,

@ 1ar6 "+enue Financial B SR0ED "nd /edia &a* Credi Financing E*5er ise

-a+e " Cues ion 9Commen $n $ur !log $r Canadian !usiness Financing "l erna i+es 3

C$D&"C&< C 'ark Dvenue /inancial !outh !heridan 0xecutive Centre 2@36 !outh !heridan +ay !uite 563 Eakville* Entario LFG CGH %irect Line I <3F 53@ 4CF@ Effice I @64 H2@ 2F45 /ax I @64 H2@ 2F45 0mail I sprokopJCparkavenuefinancial.com

' Canadian =usiness /inancing with the intelligent use of experience '

S an 1ro6o5