Why The Canada Film Tax Credit Program Is Critical To Your Film Financing
How could a government tax credit incentive possibly be ‘critical’ to your success in film financing? The answer is very simple: The Canada film tax credit program is usually the last piece of your financing, and we see many cases where it allows the other components of your project, i.e. equity, debt and ‘gap’ to come together in a final fashion.And that of course allows you press the button on ‘ ready, action, camera, shoot ‘ which is what your project is all about. And to be clear, we’re talking about the three genres of entertainment – film / movies, television, and animation. Animation credits, somewhat unheard of years ago, are quickly gaining traction in the industry as people flock to this type of entertainment. Think Shrek!Tax incentives in Canada give film investors the ability to complete financing successfully. Pick a number, any number… we’ll pick one for you – 30 – 40%! That is a typical amount you can expect to receive on a production tax credit in Canada. The actual final exact amount depends on the provincial geography you are shooting or producing in – as each province has adopted separate schedules of reimbursement.These tax film financing incentives have once again brought producers and owners of project back to Canada. While in the past a major decision around Canadian content seemed to revolve around the lower priced Canadian dollar the Canadian ‘ loonie ‘ (that’s what we call a dollar up here!) is touching parity as we head into 2011- so the whole forex issue is no longer the driver – but Canada film tax credits are.If you are not a major movie studio the film financing incentive provided to the industry by the production services tax credit has become one of the most important tools in your financing plan for your project.The Canadian tax credits stimulate of course revenues that are generated from the industry as a whole.Let’s recap some basics, so you can fast track and simplify your film financing project. It all about ‘ qualifying ‘ – you either do or you don’t. And if you qualify, you get your funding via a non repayable tax credit. The power of the tax credit increases significantly when you monetize or cash flow or finance (they all mean the same thing!) your tax incentive credit. These credits can be financed when your project is completed, returning cash flow to the owners, or, as importantly, they can be used as a financing strategy to generate cash flow as you film or produce your project and funds are expended.What qualifies in your project surprises most of our clients on the upside! Including many of the costs of a project you may be surprised on.We love the expression that the word ‘ Team ‘ is an acronym for ‘ together everyone achieves more”. Your team in film fax credit finance and film financing is critical, so aligning yourself with a Canadian tax credit business financing advisor, as well as a qualified entertainment accountant will only do two things – ensure you qualify, and maximize your credits.And we humbly submit that’s what it is all about.
Receivable Financing Problems: Here’s What Really Matters
Receivable financing problems grow out of the need for a businesses inability to grow cash flow as you run and grow your business. One strategy we recommend to clients is to grow cash flow and ‘ lose money’. That’s not a trick statement of course, and when business owners understand several forms of receivable finance
via invoice factoring can solve their challenge they want to know more. Let’s dig in!A/R financing is a source of working capital – it’s not debt or a loan per se. In technical terms it’s the sale, or ongoing sale of your A/R generated out of your sales. That transaction is accomplished via a ‘ discount’ basis, typically in the 1 to 2 per cent per month basis if you’re on top of your collections. That’s where ‘ the loss’ comes in – it’s a financing cost but at the same time has delivered all the cash flow you need. Suffice to say your business should be able to handle that 1 or 2 per cent drop in gross margins with the result being – Cash Flow!Invoice factoring allows you to run and grow your business, sell more by taking on being orders and contracts, and also has the unique ability to allow you to negotiate solid supplier prices. Why? Because you have the cash!!This form of receivable finance is used by almost every industry in Canada. Even those Bay Street boys use it also – they apply a fancier name – Securitization.What then are two major benefits of this method of Canadian business finance. It’s simply the ability to get a cash advance on your sales and of course the quick turnaround- typically 24 hours! Bottom line – pretty well same day fundingYes factoring is more expensive than Canadian chartered bank financing = that’s the perception. But that must be balance against the hard reality that thousands of businesses do not qualify for all, or even some of the cash flow financing they need. And when you’re carrying a/r 60=90 days even that bank credit line doesn’t help.The best form of account receivable cash flow financing? We call it Confidential A/R Finance – You bill and collect your own receivables, reaping the benefits and eliminating disclosure.We’re open enough to say that the majority of firms who in fact entertain receivable factoring can’t get financing elsewhere, particularly at their bank. But don’t forget also that many instances involve firms such as yours who are growing too quickly or who have landed that ‘ big contract’ or order.It’s at this time that business owners appreciate the fact that their net worth, profitability, debt coverage, or operating losses aren’t under the microscope anymore. And your firm is free to explore other methods of debt financing outside your A/R assets.Speak to a trusted, credible and experienced Canadian business financing advisor with a track record of success in this key area of Canadian corporate finance.
Digital Photography Magazine
Tired of your old film camera and craving for something new? Digital photography is a relatively new genre of photography, gradually overshadowing its older version, film photography, into obscurity. There are marked advantages digital cameras have over film cameras. Well, an lcd monitor is one, post processing adds up to image quality in a drastic way, there’s the extensive resolution, and a whole lot more!So, by now you should be impressed. But what digital camera would be most suitable for you? And how would you prepare yourself? Well, one good thing is purchasing a digital photography magazine!Photography magazines are fairly affordable, considering their quality and its content, which would really prompt one to purchase a digital camera in no time. Some of its essential content includes:Tips for just about anything about photography.May it be about an accessory, way of shooting, setting tricks, and the like, photography magazines really gives its readers an edge, coming from actual photography experts. You would discover how to use your camera better and how to utilize its features with digital photography magazine’s step by step guide. Aside from the in-camera tips, digital photography magazines also teaches its readers some post processing techniques, which is totally sweet because as you all know, post processing is what makes photography distinct from film photography.Digital camera reviews and ratingsDigital Photography Magazine, unlike camera companies, provides for an unbiased review on each digital camera release. The result then is a more objective judgment for you to assess on which digital camera you should purchase. A digital camera review usually comes with overall rating and sample images, so you would be a hundred percent sure once you decide on which camera to buy. As they always say, quality first before brand name.Photo galleryGiven that you already have a digital camera; a Digital Photography Magazinewould still be of use because digital camera magazines are also sources of inspiration to budding photographers with its gallery. Each gallery is sorted according to genre or category, took by some talent and put into that magazine, not for you to steal ideas, but to have at least a point of reference on what to shoot in your own creative way. The good thing also is that almost all digital photography magazines places the camera setting used in shooting the pictures in the gallery.Articles about digital photographyWhat use is it to engage into digital photography when you are not abreast of its developments? Do you what camera brand NASA used in their recent space mission? Well, got you! In order to be good at what you enter in, you must know at least some things about it. A digital photography magazine gives new development and some rumours regarding photography, so you would have an idea on what to expect.Photo contests!Some digital photography magazines hold a contest for its patrons. Think of each contest as a gallery exhibit and a photo is chosen with its owner given a price. Do not be afraid of entering one because almost every reader submits their own entry because unlike painting, photography can be entered by anyone. The prize, if you are lucky, would really be worth it!The points mentioned are some of the things that digital photography magazines offer. There are still millions of features that are waiting for you, every month is a special month for most of these magazines, as a matter of fact.So what are you waiting for?