Film Television and Animation Tax Credit Financing – Canadian Solutions

Financing solutions and models continue to be sought after in the Canadian film television and animation tax credit financing area. Additionally other working capital solutions for Canadian productions in this area are also available and generally less known as to their existence and their ability to assist productions of Canadian content.

Early in 2010, as is by now well known by most players in the industry, the Canadian government at both the federal and provincial level ‘super charged ‘ tax credit grants and incentives. Rates and credits increased for specified expenditures by as much as 5-10 per cent in most areas of these tax credits. Additionally a fund was even creating for Intellectual property, with a projected funding of ten million dollars.

Productions with Canadian content are aggressively being produced and savvy principals in Canada are both taking advantage of these credits, and also financing them on an interim basis, or on completion.

A combination of private investing, government non repayable tax credits and even some participation by Canadian banks create a ‘tour de force ‘of financing assistance for Canadian content. Although a significant previous factor in Canadian growth was the cheaper Canadian dollar even the dollar at par now has not hindered Canadian productions in all three key areas, film, television, and digital animation. (And let’s not forgot those lesser known sisters – book publishing and music!)

Productions in Canada are of course financing in the same manner as almost anywhere else – equity by owners, tax credits, loans, and distribution deals. The most recent tax credit incentives in effect replace film tax shelters of previous days. In our opinion this method is more transparent, available, and takes a lot of the negativity associated with ‘tax shelters ‘.

So how do principals access tax credits and how can these tax credits be financed. Did you also know that financing is available on an interim basis also, so for properly documented productions you can obtain interim financing assistance that in many cases becomes a key up front component of your financing and will allow you to complete your project more advantageously from a financial perspective?

What are the basics of this type of financing – let’s review them. To say that film, TV and animation financing is a boutique industry in Canada is of course an understatement. For that reason we strongly recommend that you work with and speak to an experienced and knowledgeable advisor in this area. To access financing you must ensure your project or projects are eligible to be certified for any one or more of the six major tax credits that are available, for example, in Ontario. (We will use Ontario as our example, but each province has similar regimes to assist yourselves.) You should ensure you have created a single special purpose entity, essentially the legal shell under which your production or project will be qualified.

Carefully choose which credits you are eligible for, and ensure you apply for proper certification as soon as possible. Improper or incomplete certification only (as in any business financing process) slows down and stalls your tax credit and the ability to finance it.

Maintain proper disbursement and payroll records – we strongly recommend to clients that they use a specialized accountant or firm in this area. If you can demonstrate your background and experience, have proper certification in process, and are committed to document the project through completion by proper filing of tax returns and financials your tax credit can be financed as immediately as when it is accepted and provided to your project. If you seek interim financing for the same project, and are committed to maintaining and demonstrating the quality in the key fundamental areas noted above you are eligible for accrual financing, or cash flow and working capital assistance immediately even prior to the certification of your project(S).

In summary, ‘Hollywood North’ appears to be booming again. The economy has picked up, consumers want entertainment in all key sectors, and even the Canadian dollar has not deterred investment in production. Tax credits have increased, and even better yet, by working with the proper experienced partner your credits can be financing when they are certified, or even earlier if you can document a strong go forward action plan on disbursements, payroll, and your experience in this great area of the Canadian economy. And by the way, speaking to an expert in area doesn’t hurt – extra tips and assistance may be worth thousands or hundreds of thousands of dollars in cash flow and working capital for your projects!

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Restaurant Finance Assists Struggling Restaurants With A Merchant Advance

In the economic condition in which we find ourselves in at this time, it’s tough to muster up cash flow for fresh operations for your business. Merchants are repeatedly met with reluctance when they desire financing for crucial procurements or retouches, because financial establishments will more likely become hesitant to advance capital than in latter times.

Nonetheless, it is not abnormal for a corporation to apply cash abruptly, and a factoring arrangement may be just the key.

When you create a merchant account you may discover that your account representative presents not purely credit card transactions. Several merchant loan account specialists administer a thorough scale of company advantages from online advertising to restaurant finance. Those that extend restaurant finance do so through factoring commitments. Factoring is a transaction composed amid the company and the merchant cash advance industry where the company effectively sells a split of its forecast future credit card commerce at a concession for capital right away.

Business cash advances are experiencing a surge in use as financial establishments demand extreme regulations on obtaining a small business loan. Factoring arrangements are not specifically loans, which implies that your credit rating, collateral and additional elements the financial institutions could calculate do not even come about. Seeing that you can confirm that your corporation brings in a firm total of funds through credit card commerce monthly, you’ll be capable to acquire some financing, a very exciting portion of knowledge for fresh corporation owners with a small amount time in business to back them up.

If your merchant loan account specialist does not provide factoring commitments you can run across countless brokers online that will. Check their offer cautiously and be positive that they obey “best practices” models. You should distinguish to begin with how much you will be required to repay as a daily capture quota, whether there are certain costs related with the application process and considerably more. Before you locate an arrangement that achieves your requests, you can acquire your merchant account loan in a few days. This is much quicker than a standard small business loan.

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Auto Loan Financing – Finance Assistance For Bad Credit

Bad credit may get you to make higher loan payments, but by means of bad credit auto loan financing you can avoid this. Though, lower rates on auto loans for bad credit are not impossible but may be difficult to dig out. Again, there are those deceptive lenders to lure people with bad credit with ‘lucrative’ loans that end up containing one or more hidden charges. Therefore, it is essential to browse through plenty of loans and compare them thoroughly to avoid falling prey to these fraudulent lenders.

Bad Credit Auto Loans With Good Deals

Most consumers with bad credit feel awkward to approach lenders fearing that their loan application might get rejected due to their credit status. Usually, lenders scrutinize borrowers’ credit reports to identify their capability to repay the loan. Hence, negative points in one’s credit reports negate chances for him or her to receive loan approvals. Many consumers assume their present credit status can offer them no help to finance their car purchase, this is why, they simply step back. It is true that users with blemished credit report might not get cheap deals as those with strong credit standing, but, bad credit auto loan financing offers good opportunities to improve credit history.

The market is flooded by a number of entities to devise auto loan financing schemes for people with bad credit. So no more worries. Even if you fall behind the score, you do not fall behind an opportunity of buying the car of your choice. Whether it is an old or new car you want to buy, lenders have different auto financing plans in place for you, regardless of your poor credit status. There is variety of car loans for those with poor credit status including used auto loans, car loan rates for new cars and many more. Therefore, if you are out to shop for bad credit car loans, make sure you shop around till you drop.

There is one more way to catch up with your local lenders and far off lenders offering you loans with different quotes. It is at home that you can find them crowding with multitude of loan quotes, on the Internet. Today, lenders have found a niche through the Internet to expand their horizons of business and to tap targeted customers who seek solutions at their fingertips, from the comfort and privacy of their home. This is the best way to avoid fraudulent lenders as you may access sufficient information on their operations on the Internet. As you collect more loan quotes, you can spend more time in comparing quotes of auto loan financing and keeping aside fraudulent operators from your list.

Before you shortlist genuine lenders and actually discuss with them plans about auto loan financing, you will get a clear idea of what your monthly installments will be. You can use the online auto loan calculator that most sites contain. It is one of the best advantages of shopping for auto loan financing for bad credit online as you get an instant estimate whether you can repay the loan that is on offer.

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Owner Financing Assistance – What Is It and How Does It Work?

The local real estate market may not look bad compared to many harder-hit locations in nation, but if you find yourself waiting a lot longer to find a buyer for your home, then it may be time to offer owner financing assistance. Owner financing can be offered to a potential buyer and help you move your property much faster in a sluggish market. It sounds pretty simple, but in reality it requires a thorough understanding of the risks.

Before you can put the offer on the table for owner financing assistance, it is important to protect yourself both legally and financially. This starts by doing a thorough review of the buyer’s personal background, including their financial assets and employment records, references, credit scores, and other relevant information. There is no reason why you shouldn’t perform as rigorous a review of the potential buyer’s qualifications as any other financial institution would.

Secondly, when offering owner financing assistance, the purchase contract must be very carefully prepared, including the details of the owner-financing loan. Be sure to include a “deed-in-lieu-of-foreclosure” clause in the contract, as well as the amount, interest rate and specific terms of the loan. This way, if the new owner were to default on his or her loan, you would be able to take the property back from the buyer. An agreement should also state that the sale is “contingent upon the approval of the buyer’s financial information”.

As tempting as it may be, do not enter into a situation where the buyer avoids a down payment. By investing a lump sum amount in the property, the buyer is more likely to feel ‘invested” in the property and this lessens the risk of default.

Also, remember you can ask for professional help in executing the contract and closing the sale. You may require the assistance of a title company and a loan servicing company, as well as a real estate attorney to help you with the closing paperwork and financial aspects of the sale.

A Realtor may be your best source of advice and support when you offer owner financing assistance.

Summary

Offering an owner financing assistance to a prospective buyer could be the fastest way to sell your home so that you do not have to wait too long. However, there are risks associated with this transaction, so you are expected to make the necessary review of the buyer’s personal background which includes financial background, credit score and others. You should also ensure that the purchase contract is very carefully prepared, including the details of the owner-financing loan. Lastly, the services of a real estate attorney will be very helpful in this case. It is worth the time, money and effort you will spend.

Todd Hawker is a Colorado Springs real estate broker and agent and the owner of Action Team Realty. With nearly 30 years of experience buying and selling homes in the Colorado Springs area.

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