SR&ED Tax Credits :
Prepared – Check
Filed – Check
OVERVIEW – Information on ‘ SHRED’ ( SR&ED ) credit financing in Canada . The ability to utilize SRED Tax credits loans enhances your businesses ability to accelerate the cash flow benefits of this program – ie monetizing your refundable tax credit today , without the wait.
Shred Credit financing in Canada eliminates business owners / financial managers trying to imagine when they will receive their refund. The cash flow derived from a SRED Tax credits loan is often one of the most valuable cash flow injections many firms experience through the year. Let dig in.
For the thousands of firms that file for the billions of dollars in refundable tax credits the program is somewhat affectionately known as ‘ SHRED ‘ , while the actual correct name has the ‘ ampersand’ in it – namely SR&ED . When your company utilizes and qualifies for this R&D recovery strategy you’re in a position to recover a large majority of the expenses your firm outlays for research and development.
We’re the first to acknowledge the program name, SR&ED, Sred, or whatever..!! conjures up images of men and women in white coats and labs.The reality? Thousands of Canadian firms use the program and qualify for work they do in advancing their products, services, and processes. A very general rule of thumb is that 35% or so of funds spent are typically recovered.
But how do owners overcome what some associate as time consuming in anything related to government? That’s easy – as the vast majority of claims are prepared by third party ‘ SR&ED Consultants ‘ , who further eliminate time and both risk by preparing claims on a contingency basis – thereby claiming a portion of the refund for their work . They are responsible, along with yourself for deadlines, quality of your claim, and the back up needed to validate your firms spend.
With respect to the financing of the claim suffice to say that rarely do owners complain about anything that refunds a large portion of your firm’s expenses in your effort to stay competitive. What can cause concern of course is the time gap in between filing and waiting for your refund! Business owners would always prefer to get those funds working in their business , for any purpose they desire, including of course starting to spend on next years work in research.
Enter the SRED TAX CREDITS Loan! It leverages your claim into instant cash flow/working capital;even more so given the general ‘ SHRED’ credit financing structure. Financings are structured as ‘ bridge loans ‘ which enable you to monetize up to 70% of your claim today, without making payments during the time of the loan.
When the combination of federal and provincial claims are approved and funded by the govt the loan is in effect ‘ collapsed ‘ with your firm receiving the balance of the claim less financing costs which typically are ‘ mezzanine’ in nature given the uniqueness of the financing .
Looking for even better news? Consider the fact that claims can be financed prior to filing, or even as you start next years claim.
If you’re looking to unleash the financing power of Shred Credits consider a SRED Tax credits loan : Seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can assist you in the financing of your refund .
Writer Stan Prokop – 7 Park Avenue Financial :
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 90 Million $ of financing for Canadian corporations . Info /Contact :
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