MONTHLY FINANCIAL REPORTING – DO YOUR STATEMENTS MAKE THE GRADE?

October 2, 2014 As a very active lender to early stage and growing technology companies, we receive hundreds of loan applications every year. The quality of the financial reporting provided to us varies greatly, and unsurprisingly, correlates highly to the seniority and experience of the company’s lead finance executive. When we review loan applications, we […]

SR&ED AUDIT NIGHTMARE – A TRUE STORY

September 26, 2014 A company with a ten-year track record of successful SR&ED tax credit claims and government audits suddenly finds its status as a Canadian Controlled Private Corporation (“CCPC”) revoked by the CRA, rendering the company ineligible to receive  SR&ED tax credit refunds. The company was shocked: its corporate structure had not changed since […]

SUCCEEDING UNDER THE NEW SR&ED REGIME

July 23, 2014 Do changes to the SR&ED program make it more difficult to obtain funding for industrial research and development? We take a look at the revised criteria and its potential impact on your tax credits. In many of my conversations involving SR&ED tax credits, I get questions regarding the eligibility rules that have […]

IRAP VS SR&ED?

July 17, 2014 If your company conducts research and development, you most likely have or will consider a number of government funding and tax credit programs. How do you assess which program is right for you? How do you determine which program offers the greater expected return for your time and effort? This article will […]

VENTURE CAPITAL DEBATE NEEDS TO GROW UP

July 8, 2014  Two recent articles, I’m Glad I Did Not Take VC Funding and Canada’s Tech Start-up Scene Needs ‘Aggressiveness and Boldness’, illustrate how the conversation on how to fund your business has become way too polarized. It’s a dialogue that deserves much greater nuance than a simple and binary, pro and con judgment. The decision to […]

SOLVE YOUR #1 PROBLEM AND HIRE RIGHT

June 26, 2014 To help improve your hiring effectiveness, we’re giving away 200 hardcover copies of the bestselling classic Who: The A Method for Hiring by Geoff Smart and Randy Street. The authors have advised CEOs and executive teams for over 15 years and the book’s research is based on 1,300 hours of interviews with more than 20 […]

FIVE REASONS WHY USING SOURCE DEDUCTIONS TO FINANCE YOUR BUSINESS IS A VERY BAD IDEA

June 26, 2014 Legal and ethical breach of trust Employers are required to withhold deductions from employees’ wages to pay income tax, CPP/QPP and employment insurance premiums. The funds are deemed to be held in trust for Government of Canada. Abusing these funds is both a legal and ethical breach which may raise some eyebrows. […]

WHY SAAS COMPANIES MAKE GOOD REVENUE FINANCING CANDIDATES

May 20, 2014 At Espresso our goal is to bring venture debt into the venture capital mainstream. One of the ways we do this is by funding companies earlier in their growth cycle than our counterparts, and another is by funding companies that lack institutional venture capital sponsorship. At the earliest stages we provide venture […]

VIDEO GAME COMPANY GETS A BOOST

May 20, 2014 A first person account on how Espresso Capital helped JVL Labs finance a big step forward. Back in 2006, a classic David and Goliath battle was being fought in U.S. District Court. The case, involving patent infringement in touchscreen amusement games, pitted Markham, Ontario based JVL Labs against U.S. giant Merit Industries. “It […]

HOW US TAX LOOPHOLES ARE IMPACTING FINANCIAL DECISIONS AROUND THE WORLD

April 30, 2014 America’s outdated corporate tax code is providing its biggest multinationals a huge incentive to stash their profits offshore. Can Canadian companies benefit? According to recent Bloomberg figures, U.S. based companies have accumulated $1.95 trillion in offshore cash and short-term investments. 80 of the top 100 publicly traded U.S. companies operate subsidiaries in tax […]