OVERVIEW – Information on the SRED Bridge loan. The refundable Research Development SR ED Credit recoups r&d capital and accelerates cash flow.
A SR&ED Research and Development Tax Credit absolutely doesn’t require a masters degree to successfully file, or finance the claim. How then does the whole process work, and when it comes to receiving your credit or financing it via a SRED Bridge Loan can you avoid being a ‘ Wrong Way Feldman’? Let’s dig in.
Wrong way Feldman? He was a character on the iconic ‘ Gilligan’s Island’ TV series – portrayed as being very incompetent. Quite a character, as a pilot he had fear of flying! (He once flew to New Orleans by mistake, intending to land in Minneapolis!)
So how do you avoid those ‘ Wrong way’ moves in both the preparation and financing of your claim? … Allowing your firm to receive your share of the billions in R&D credits annually. And by the way, to finance your claim is even easier when your filing and prep process are done properly. (SRED Bridge loans can often be successfully accomplished within a couple of weeks from start to finish).
The ability to recoup capital, i.e. the refundable SR&ED tax credit, while both staying competitive through improved products and processes is what ‘SR ED’ is all about .
What resources do you have at your availability to properly prepare and finance a claim? More about the financing later, but when it comes to filing a research and development sr Ed credit it’s all about the quality of preparation. That work, almost 99% of the time is done by qualified SR&ED consultants – working in conjunction with your firm and your accountants re the year end filing process.
Typical claims capture the technical narrative and data as well as itemizing the expenses and costs relative to your claim – Typically 35-40 % of all your expenses are recovered under the R&D credit. We see clients claiming anywhere from 25k to $1,000,000.00 in refunds.
The end result of a successful claim? You receive a refund in the form of a cash return. However that whole process, depending on the gov’ts timing, as well as yours can take many months. Here’s where financing your SR&ED credit might well make perfect sense – if only for the reason of generating additional cash flow for more r&d needs as well as daily operational and investment needs . (Your SRED refund, of the financing of the claim allows you to use the refund for any general company purpose).
SRED bridge loans are constructed to provide 70% funding of the total value of your claim. No payments are made during the duration of the loan, which can be prepaid at any time, or of course when the govt sends that final actual refund chq. It’s also interesting to note that you can finance any or a combination of last years, this years, and next years claim! Talk about flexibility and access to funds!
If you’re looking to be avoid being a ‘ Wrong Way Feldman” in research credit funding focus on the proper basics : Identifying eligibility, keeping careful track of your spend in r&d, working with a SR&ED consultant with a good reputation, and following CRA filing procedures.
And financing your claim – seek out and speak to trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can help you finance your claim and generate that immediate cash flow recovery.
http://www.7parkavenuefinancial.comBusiness 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 LOAN FINANCING EXPERTISE
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Office = 905 829 2653
‘ Canadian Business Financing With The Intelligent Use Of Experience ‘
ABOUT THE AUTHORStan 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 startups 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.