OVERVIEW – Information on financing SR&ED refundable tax credits in Canada. Key elements of the value of SR ED loans via SRED finance are discussed. Companies looking to monetize r&d capital investment should consider sr&ed financing
SR&ED financing does absolutely not have to be a long shot. In fact preparing and submitting your R&D claim properly helps to almost guarantee your claim can be financed via a SR ED bridge loan. Let’s dig in.
It certain though that the general debate about the economic values of the program rages on. Recent major editorials in Canada’s business press focus on the issues and questions. In a nutshell:
– inability of Canadian firms to maintain competitiveness
– lack of products being taken to full market potential
– improper alignment of federal and provincial resources
And on it goes!!! We have to love those govt and economics folks; we’ll continue quietly toiling away in the real world helping those 18,000 + claimants of the program who benefit from billions in refunds from federal/prov authorities.
We’ll let other debate these issues, notwithstanding their importance, ad nauseum . Our goal – effective SRED funding that speeds up cash flow recovery for your R&D capital investment.
Cash flow from SR&ED factoring (i.e. monetizing your claim) means different things to different types of firms. Many ‘ start ups’ we work with use sr&ed financing in some cases as their most critical source of cash during their early development. Other firms of course simply take advantage of the program for reasons as simple as cash flow mgmt.
Not everyone knows that even publicly traded companies can actual benefit from refundable tax credit for the provincial portion of their claim – those claims are 100% financeable!
How then does the SR&ED loan work? It certainly helps to ensure that your claim follows the proper admin and filing guidelines under the program. The vast majority of claims are prepared by qualified SR ED consultants. Aligning yourself with a reputable consultant allows you to help insure the integrity of your claim. Most of these folks work on contingency so their work and reputation is at risk also, as well as minimizing your upfront investment in claim prep and filing.
Tax credit loans for SRED are funded at 70% of the total value of the claim, and no monthly payments are made during the duration of the loan, which is usual sometime within a 12 month period. The entire loan funding process can usually happen with a couple weeks -start to finish.
If you’re looking to monetize your Sred claim seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can outline the benefits of sr ed loans for your company .
Stan Prokop – founder of 7 Park Avenue Financial –
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business for over 10 years – Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing. Info & Contact Details :
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Office = 905 829 2653