Business

by doug88888

Article by Stan Prokop

Many of our clients can be easily forgiven for being confused and mis-informed on Canadas SR&ED program, aka ‘ SRED ‘, as most people call it. They can be even more forgiven for not know the basics about SRED finance. We try and simplify that discussion into two very basic things you need to know :- If you have a sred claim its financeable for cash and working capital now- To finance a claim you need to have filed a claim, but not always!! Your ability to monetize or cash flow a claim is in fact a superior way of generating additional working capital and cash flow now based on the value of your filing. We will add one technical point here, in that claims are generally financed at 70% LTV. LTV means ‘ loan to value ‘, so we are simply saying that for every one hundred thousand dollars of sred claim filing you can generate seventy thousand dollars via a short term sred loan. We can expand on that point a bit to ensure you are well informed. After filing a claim it is clear you are in a ‘waiting mode ‘ for your claim to be analyzed, potentially audited, and then of course waiting for the proverbial government cheque – we are of course all familiar with the expression ‘ it’s in the mail ‘ – With Ottawa backing your non repayable cheque you of course have the assurance funds will come, but you just don’t know when!We recommend that if you have filed a claim that you investigate the ability to finance that claim now. If the cheque under the program is a non payable grant ( other than paying tax on the income that’s as close to free money as we can get in Canada from the government!) Why wouldn’t you consider a financing option to accelerate cash flow and start using those funds now?Uses of funds under SR&ED financing are totally within your control. We see clients utilize sred financing to further invest in even more R&D, i.e. next years claim! or you can choose to reduce payables, invest in additional equipment or business assets, etc.In a small handful of cases we meet with firms who have a tax liability to Ottawa or the province re source deductions, GST/PST back remittances, etc. If you work with a trusted, credible, and experienced sred financing Sr&Ed consultant you can structure your financing to ensure that you’re past due remittances are taken care of during the sred financing process. No firm wants to be in the governments bad books re past due government super priority issues.The actual SR&ED financing process should be treated by yourself as any other business financing – we try and actually make the case its easier in some cases, because the actual asset behind the sred loan is the sred claim itself, so even if you think your firm might not qualify for financing for other forms of traditional borrowing your probably qualify for the sred – why?? Because you have a sred claim as an asset that’s verifiable! Ensure you are aware of this great program within Canada that generates billions of dollars in working capital and cash for Canadian corporations.Yes you can wait for funds, which may take a couple months or the better part of a year – if you cant wait consider financing your Sr&Ed claim via a short term sred loan which is collateralized against your filing. We strongly recommend you have a professional filing prepared, by your accountant or sred consultant (there are many) – this will significantly positively impact your ability to finance your claim.It’s a great cash flow and working capital strategy, and no debt is on your balance sheet, as it is offset by your sred asset that is in fact a monetizable account receivable.

About the Author

Stan Prokop – founder of 7 Park Avenue Financial – http://www.7parkavenuefinancial.comOriginating business financing for Canadian companies, specializing in working capital, cash flow, asset based financing. In business 6 years – has completed in excess of 45 Million $ $ of financing for Canadian corporations.Info re: Canadian business financing & contact details:http://www.7parkavenuefinancial.com/sred_tax_credit_financing_2_things_you_must_know.html

by mars_discovery_district

Article by Personal Finance Guru

Finance consolidation is one of the strategies that you could use to resolve your debt problem. It may be a good idea to learn more about ways to settle your debts such as through finance consolidation before you allow your creditors to file a bankruptcy order against you.

Getting into debt is a lot easier nowadays especially if you have credit cards and had bought your own car and home through loan and mortgage. While it is common for us to be using our credit cards when we go shopping, it can easily get out of hand and before we know it, we are deep in debt with sky-high credit card bills. However, you should not despair. There have been instances where some people had more than 5 credit cards and had maxed out each card but were able to settle all the credit card debts within a certain time frame. While it sounds impossible, be sure that it can be done. All you need is a strong willpower, determination, wise budgeting and the right get-out-of debt strategy.

It may be wise to look at debt consolidation and see if it is right for your particular financial problem. Do you have a lot of unsecured debts like credit card debts and payday loans? If so, maybe it is a good idea that you consider consolidating all of the debts into one single account for easier debt management. After all, when you gather all your unsecured loans, which includes your credit card bills, into one single account, it makes it more convenient for you to repay. Instead of paying so many creditors, you need only concentrate on paying one creditor. Time will be saved and there is no worry of missing a payment because you forgot or accidentally left out a bill when repaying your debts each month.

There are several types of debt consolidation that you can look at. The first option is a debt consolidation loan that you could take up to pay down all your unsecured loans. After paying up all your unsecured loans with this single loan, you need only concentrate on paying this one loan. The advantage of this is that you may be able to cut down on the interest that you were paying for your unsecured loans. A debt consolidation loan’s interest rate may be lower compared to your unsecured loans especially your credit card debts.

The loans you can take can be a refinance loan which is secured to your home. This type of loan is available if you have home equity and a good credit score. The advantage of getting this loan to pay up your debts and consolidate it all into one is that it will have lower interest rates. This could actually save you from a few hundred dollars to a few thousands in interests. However, the loan is a long term one so you may need to take longer to repay it, possibly between 20 and 30 years.

If you do not relish the idea of taking a loan to settle all of your unsecured loans, there are also other options available. You may want to try debt management services and credit counseling services. These are some of the options that you could consider other than taking a consolidation loan to settle your debts. The above-mentioned methods all have their pros and cons but what you should be looking for is a single method that suits your financial situation.

About the Author

http://www.bills.com/debt-consolidation-options-article/http://www.bills.com/debt-consolidation/

http://www.bills.com/bill-consolidation-loan/

This time, Max Keiser and co-host, Stacy Herbert, examine Jamie Dimon’s sore spots and the Department of Justice’s PR stunts and ask whether or not Americans are plunging deeper into debt. In the second half of the show, Max Keiser talks to Michael W. Hudson, author of The Monster: How a Gang of Predatory Lenders and Wall Street Bankers Fleeced America — and Spawned a Global Crisis.” RT on Facebook: www.facebook.com RT on Twitter: twitter.com

by California Cthulhu (Will Hart)

Article by Ray Subs

If you are shopping for a new or late model used vehicle, chances are good you will need auto financing. Many of us do not have the large sum of money it would cost to pay cash for a vehicle, hence the need for financing. Financing for an auto can be obtained through banks or other financial institution in the business of loaning money.

You can finance most any vehicle you are likely to buy. Lenders do however tend to draw the line at older vehicles. This is because the majority of the auto loans made are secured loans, meaning the vehicle being purchased is being used as collateral for the loan. The lender will lend you the money to purchase the vehicle knowing if you default on a payment, they will at least have the vehicle to resell in order to recoup some of their money. Lenders do not like having to take the vehicle back because they are not automobile salesmen, but they will if they are not getting their money from the purchaser.

If you have pristine credit, there is always the possibility of purchasing a vehicle with a signature loan. A signature loan is an unsecured loan. No collateral is being put up to secure the loan. The lender is banking on the fact that you have always made your payments on time and have paid off several notes whether it was to them or a competitor. These loans usually carry a slightly higher interest rate, but you are allowed to use the money for any type of car you wish to buy. Because lenders have an aversion to loaning money for the purchase of an older vehicle, such as a classic vehicle in need of improvements, you will need a signature loan to purchase this type of vehicle. Lenders will not take collateral for a loan, unless the collateral is worth at least as much as the loan. If you run into a seller of a used vehicle who is asking for more than the vehicle is worth, the lender will only loan you the amount of the vehicles worth. You will have to make up the difference in cash.

When it comes to down payments on the vehicle you wish to purchase, a lender will usually require a percentage of the selling price as down payment. This not only makes the loan amount smaller, but also lenders know as well if not better than anyone else how much the vehicle you purchase depreciates once it has been driven off the lot. The vehicle is worth more sitting on the showroom floor than it is once it has been purchased. Again if you have pristine credit many lenders will not require you to have a down payment because they are vying for your business.

If you have bad credit or no credit, take heart chance are good you can still get a loan to purchase a vehicle. You will be required to pay a higher interest rate and you will also be required to have a large down payment. The lenders don’t want to loan you any more than they have to. They feel they are taking a chance on you anyway, so you have to do your part in making them feel like you are a good risk.

About the Author

If you need advice from an Auto Finance Expert, contact Lauren Anderson at her website autofinancing.net.

by mars_discovery_district

Article by Wade Anderson

The way to study and address the different ways that individuals, businesses, and organizations raise, allocate, and use monetary resources over a period of time while also taking into account the risks involved in projects is the realm of finance. Finance can incorporate the study of money, other assets, management, control of such assets, and profiling and managing risks associated with projects. It can also be interpreted as being a way of providing funds for a business.

When one thinks of finance, one thinks of the activity of applying a set of techniques that individuals as well as organizations use in managing their financial affairs and, in particular, finding out the difference between income and expenditure as well as the risks of investments. When income exceeds expenditure it allows the business entity to invest such excess income or lend it out. It may be used by individuals and is known as personal finance or by governments which is termed public finance and by businesses where it is called corporate finance. In addition, many other organizations such as schools and non-profit organizations also use finance. Using appropriate financial instruments allows each individual user to accomplish their goals.

Personally, it revolves around knowing how much money an individual needs in the future, what the source of such funds is, how to protect the funds against unforeseen events, how to transfer family assets across generations, and what effect taxes have on personal financial decisions. Also, personal money management would include paying for education, financing of durable goods, buying insurance, and investing and saving for retirement.

In business, it is a task that takes care of providing funds to drive the company or corporation’s activities and involves balancing risks as well as profit margins. Long term funds could be sourced by ownership equity as well as long-term credit, sometimes as bonds. Corporate finance also deals with investments through fund management. When the corporation or company invests money it acquires assets that it hopes will maintain or increase its value and investment management portfolio. When choosing a portfolio one needs to arrive at decisions concerning what, how much, and when to invest. This requires identifying relevant goals, aims, constraints, identifying the best strategy and whether it is passive or active, and hedging strategy. The corporation or company will also need to measure how well the portfolio management is over time.

Of late, there is a growing tendency to converge as well as consolidate finance provisions in the form of shared services within the framework of an organization. Instead of the company having many separate departments, one centralized department would be able to serve all the needs of the organization. Financial planning and the use of forms helps in scheduling the financial future of the entity and takes into account understanding investments, taxes, estate planning and more.

About the Author

Wade Anderson is a CPA and operates DigitalWorkTools.com Click to view Finance Forms

Financial Markets (ECON 252) Real Estate is the biggest asset class and of great importance for both individuals and institutional investors. An array of economic and psychological factors impact real estate investment decisions and the public has changing ideas of real estate as a profitable investment. People’s demand to buy a home by taking on long-term debt, called a mortgage, is often tied with the overall health of the economy and financial markets. In recessions, home buying tends to fall and the opposite holds in a strong economy. Commercial real estate, held indirectly by the public through partnerships and real estate investment trusts (REITs), is vulnerable to similar speculative activity. The most recent real estate boom illustrates the speculative nature of real estate, and its relation to financial and economic crises. Complete course materials are available at the Open Yale Courses website: open.yale.edu This course was recorded in Spring 2008.

by ThinkGeoEnergy

Article by Caarlin Wilson

Upfront payment of the trucks may not be the best option for many businesses. They have to approach banks and also other financial institutes for the purpose of getting truck finance.financing is a familiar form of rising funds for the buying of trucks. However, a suitable plan of loans has to be selected that works according to the business needs and objectives of the organization… Institutions offer lease finance,chattel mortgage, and hire purchase as options.

Banking institutions and most of the financial institutions provide various forms of loans and financing options. Several other private financial institutions even give various other means of truck finance. The offer of truck loans from the private institutions is often more attractive than the banks and non-private institutions. Firms save time and money both when they opt for getting their truck finance from the private organizations, which might incorporate options such as truck hire purchase, or truck lease finance, or truck chattel mortgage.

Truck lease finance is one of the methods of loans availed by company during procurement of trucks. This method involves the company selecting the trucks they need and the approaching a financial institution to purchase them against lease finance. The financial institution then makes the trucks available to the firm for the lease period, against a sequence of rentals, also including interest. After the lease period, and after the company has paid back the dues, the ownership of the trucks is shifted to the organization. Other kinds of truck financing provided by the financial institutions is truck chattel mortgage and also truck hire purchase.

Truck chattel mortgage is a ordinary form of truck finance in which rather than immovable property, trucks as movable property are involved. The word chattel here is used for private property and one that are non-stationary. Legal ownership of the trucks lies with the company. During the purchase, but papers are handed over to the financial company, spending for the trucks. After the agreed period is over and the company has paid back the dues, the mortgage is canceled.

Truck hire purchase is another method of financing by which organizations can acquire for their use. It’s similar to other hire purchase methods used in the market. The company pays in EMI’s to the financial institution. Generally this involves the payment of a deposit initially, and EMI’s every month. After the organization has repaid the total amount due, the ownership of the trucks passes to the organization.

About the Author

http://www.truckfinancecentral.com.au/ has been created to make it easier for people and businesses across Australia to secure the best finance plan for trucks. At Truck Finance, there are brokers available who have the experience needed to tailor truck chattel mortgage to the needs of the company, and they can be reached by phone during business hours or through an email. For more information on Truck Financing, feel free to visit http://www.truckfinancecentral.com.au

by California Cthulhu (Will Hart)

Article by Stan Prokop

Clients are always asking what extra steps or information they need to know to complete a successful acquisition a new or existing franchise. Buying a franchise, it goes to says, is clearly one of the largest decisions any entrepreneur might take. Of coruse there are a couple of different versions of the opportunity, as follows – Purchase of a new franchise – Purchase of an excising franchise that is for resale by current owner- Purchase of an additional unit in your chain when you own one alreadyAre there any special tips and critical pieces of information you need to know that will get you a leg up on a ‘ leg up ‘ in the area of franchise finance. Let’s share and discuss three critical points.1. Franchise Finance is a very specialized type of financing – financing options are available but not unlimited – you need to know what they are2. There is a chance for franchise financing failure if you do not have the proper fundamentals in place and are exploring numerous options at the same time – ‘flailing around is not good!3. You might significantly benefit by using the services of a franchise consultant in the area of business financing Lets review our point # 1 – Business financing in general has always been a challenge. Specialized financing in any area of business is a unique challenge because of limited options and a limited number of players. Players = lenders! If you accept business financing is difficult then you can imagine the severity of the challenge in the 20010 global economic crunches that we still seem to be in.So is it all negativity and bad news. Not necessarily of course if you are informed and prepared. Let’s unveil the mystery of franchise financing. How exactly are the majority of franchises financed in Canada? The options are exactly as follows:- A special Government programme called the BIL program under which the majority of franchises in Canada are financed- Owner equity – your own deposit into the deal- Equipment and asset financing- Working capital cash term loan – typically a 5 year payback- Vendor financing ( if available – more often than not it is not )- Revolving line of credit for ongoing operating needs and growth!With respect to the last point we would emphasize that while it is of course important to structure a proper financing around your franchise purchase many business owners forget to consider how they will finance the business on an ongoing basis, and more importantly, how growth options will be financed.It is critical for you to understand that it is very rare that any one option will get you the full financing you need. The reality is that it will be a select combo (and that’s the expertise you require) to fully finance your business with any number of the above options.We point out in our key point # 2 that you must be prepared. This is where many clients tell us they have failed in the past – they have not prepared a proper business plan and executive summary. We encourage you to prepare a proper business plan, understand what your opening balance sheet will look like, and most importantly, understand the cash flow needs of your business. For example, if you take the time to sit down and do all the numbers ( this is actually easier than you think ) you could find that in month one and 2 and 3 that you might be experiencing negative cash flow. If sales ramp up slowly and you have negative cash flow then clearly you will have problems which could accelerate and dampen the overall success of your business. Finally, consider using the services of an experience, credible and trusted franchise consultant that can guide you through the financing maze. Having that party properly prepare a business plan, opening cash flow, executive summary, and proper financial projections is worth a small fee you might be charged. Business financing in Canada dried up in 2008 and 2009 – franchise financing is still alive and well though. Many lenders view franchise financing even more positively than other types of businesses and industries – the reality being that there is a greater chance of success for a brand that is proven and known, and has a reliable business model of proven success.Know your franchise options, be prepared in executing on those options, and consider italicizing a franchise consultant to complete your franchise loan and overall funding. That’s a solid plan!

About the Author

Stan Prokop – founder of 7 Park Avenue Financial – http://www.7parkavenuefinancial.comOriginating business financing for Canadian companies, specializing in working capital, cash flow, asset based financing. In business 6 years – has completed in excess of 45 Million $ $ of financing for Canadian corporations.Info re: Canadian business financing & contact details:http://www.7parkavenuefinancial.com/buying_franchise_franchise_finance_franchise_loans.html