Which Of These Two Govt Programs Provides Great Business Financing Possibilities ? Answer : Both Of Them
OVERVIEW – Information on the financing benefits of the Govt Business Loan and bridge finance via SRED Tax Credit Loans
Govt business loan funding in Canada as well as the ability to access SRED tax credit loans are two excellent ways to help fund your company. While many clients we speak to are looking for the proverbial ‘ grant ‘ the concept of ‘ free money ‘ isn’t really available- instead the alternatives we have mentioned are great ways to raise capital/cash flow. Let’s dig in.
For companies seeking SME COMMERCIAL FINANCE solutions these programs stand head and shoulders above – they fund over 12 Billion dollars each year when we take into account both programs.
While many may consider anything to do with govt as ‘ overwhelming ‘ the reality is that both programs are straight forward. For the Govt Small Business Loan, aka the ‘ SBL ‘ it’s available to all new or established firms with revenues under five Million dollars. We note also that the program does not apply to publicly listed companies.
How can you qualify for the program, and, more importantly, do you qualify? Customers need to review the classes of assets that can be financed. The true power of the program is that the rates are only 3% over prime, currently in the 5% range. Terms of repayment are 5-10 years, and, are you ready; a full personal guarantee of payment is not required!
How do firms such as yours, or your competitors! use this type of loan financing .Typically these programs are used by companies to acquire assets, improve their business, purchase or develop software, and even in some cases buy real estate.
We note that even business real estate can be financed, with limited guarantees and great rates and terms.
If business principals feel they are adequately prepared to source out this programs financing power we strongly recommend that they begin this process. However, not everyone has the time, financial skills or acumen, and the ability or comfort level to complete this financing.
Those people should seek out the aid of a trusted advisor and business financing expert in order to maximize their participation in the program.
Still looking for that ‘ free money ‘? Does it exist? Again, not really. But would you like to receive a check from the government for any processes, research or innovation that your firm has developed? If so you want to maximize your participation in the governments SR ED tax credit program.
Looking for a faster option for your SR ED claim? Once your firm or your SR&ED consultant has filed and prepared the claim your refund can be financed, generating immediate cash flow via a bridge loan. Claims that are financed are structured as bridge loans – no monthly payments are made for the period of the loan, and typical loan to values are 70% of your claim.
If you’re looking to explore the finance possibilities around the Cdn govt small business loan or SR&ED tax credit financing seek out and speak to a trusted credible and experienced Canadian business financing advisor who can assist you with cash flow & capital solutions that make sense.
Stan Prokop – founder of 7 Park Avenue Financial –
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 :
7 Park Avenue FinancialSouth Sheridan Executive Centre
2910 South Sheridan Way
‘ 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.
7 Park Avenue Financial
Canadian Business Financing