Ctrl Alt Delete : Rebooting Your SR&ED Claim Via A ‘SRED’ Bridge Loan

OVERVIEW – Information on financing sred ( SR&ED ) tax credits in Canada. A SR ED tax credit loan provides immediate monetization of your refundable tax credit for Canada’s Scientific Research & Experimental Development r&d program.


Financing SRED (‘SR&ED’) credits in Canada
is almost like rebooting your SR ED claim. A tax credit loan allows you to get an immediate reimbursement under Canada’s Scientific Research & Experimental Development program.

Utilizing the cash from your refund has a dual benefit – you’ve eliminated the wait period in what for many firms is in effect a very important ‘ receivable’, and at the same time it allows you to forge on in your competitiveness in today’s global marketplace.

Financing of your claim of course has nothing to do with your actual eligibility of the program… that’s up to you and your ‘ Sred Consultant ‘. That whole process becomes the actual determination of how your products or processes qualify. Consultants on your claim work on either a fixed fee or a contingency fee basis – it’s your decision although most appear to take contingency given it transfers all risk to the consultant!

Timing not only involves the financing of your claim and its monetization – you also have to ensure your filing deadline under your actual claim submission are in accordance with CRA guidelines.

Your SR&ED claim has several key elements, all of which hopefully maximize the total amount of your refund, and therefore your eligible financing. (NOTE – The tax credit loan is typically 70% of the total value of both your provincial and federal claim – the larger the refund the more you of course can finance)

Financing of your claim simply involves a basic business credit application that you would anticipate with any other type of financing. Naturally the ‘ collateral ‘ for the loan is in essence the actual refund itself. That refund depends on the quality of your narrative in the claim, the amount of employees of contractors that were paid and participated in the claim, etc.

The true power of the ‘ SHRED’ refund is of course your ability to recoup the maximum amount of cash – the total cash refunded under the program is in the Billions of dollars in Canada under combined federal and provincial parts of the program. Typical refunds are in the 30-40% range based on the total amount of your R&D. Again, it’s your Sred consultant and accountant that have the obligation to maximize that claim for your company.

Your actual SR&ED is filed along with your T2 tax return. You can start to see the benefits of a sr ed tax credit loan by taking a look at the total timelines we’re talking about – i.e. actually doing your r&d, preparing a claim with your consultant, and then filing it after your year end financial are prepared. Then of course potential audits and review by CRA of your claim kick in.

As we have noted financing refundable SR&ED credits is a very simple process. You typically would only consider financing a claim if you have a need for cash. Financing your claim should be measured against your needs and uses of the cash. Typical claims can be financed in a manner of weeks.

If you’re looking for a SRED ‘ reboot ‘ – i.e. in our case the monetizing of your refund seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with your tax credit loan needs.


7 Park Avenue Financial :

http://www.7parkavenuefinancial.com
Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 – Completed in excess of 100 Million $ of financing for Canadian corporations . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN SR&ED TAX CREDIT FINANCING EXPERTISE

7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 905 302 4171
Office = 905 829 2653

greg@7parkavenuefinancial.com


‘ 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 start-ups 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