OVERVIEW – Information on the finance of r and d tax credits in Canada. Sred loan financing provides ready cash flow for recovery of your SR ED claim.
SR ED R and D tax credits in Canada can quite easily give Canadian business owners/ financial mgr’s that ‘ uneasy’ feeling when it comes to realizing the benefits of the program. SRED loan financing can very well remove that discomfort, allowing your company to reverse that ‘ going nowhere fast’ feeling when it comes to recouping your cash. Let’s dig in.
Suffice to say that we’re quite sure that most businesses utilizing Canada’s Scientific Research & Development Program (aka’ SR&ED’)
would not break their commitment to developing those new products and processes around which the program was founded even if there was no refund involved. It’s that competitiveness and innovation that allow your company to survive grow and stand out.
The types and sizes of companies in Canada that utilize r and d tax credits runs the full gamut – from partnerships, start ups, to larger companies in the SME Commercial workspace.
‘ Government programs’ tend to have a natural credibility factor in the mind of business owners/financial mgrs , yet certain programs such as SR ED as well as the Govt Guaranteed Business Loan have stood the test of time, providing well over 10 Billion $ of funding in total annually for thousands of firms just like yours.
Just as r and d is integrated into your business on an ongoing basis so can the financing of your refundable tax credit. Financing your SR ED claim all of a sudden makes a great deal (the program) even better as you realize back the cash refund aspect of the program. As a general rule the SR&ED consultants that prepare these claims for Canadian businesses can recoup almost 35% of the total amt of your spend. Claims can also be carried over from the previous year, and financed in the same manner. A true 2 for 1 bonus!
The quality and amount of your claim have a lot to do with the financing of your refund. That’s because the loan value of your claim is 70% of the total refund due, and the quality of the claim helps guarantee that full govt refund, as well as the timing in which it is approved.
Maybe it’s just us, but one a true irony of SR ED r and d tax credits is that your research does not even ultimately have to be successful for qualification of both approval, and even the financing. We suppose that’s the govt’s form of a ‘ participation ribbon’!
As soon as your accounts and SR&ED consultant have worked together to file your claim you are eligible for financing – however recent trends in SRED loan financing actually allow for claims to be financed for future claims also if you’ve started that process.
SR&ED financing is a simple business application process – with the main collateral for the loan being of course your tax refund. Loans are structured as bridge loans which allow for no payments during the duration of the loan. Definitely no ‘ shady math’ here – just a simple finance application process with refunds typically being financed in several weeks from start to finish.
If you’re focused on reversing that ‘ going nowhere fast’ feeling in your SR&ED process 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 SR ED R and D Tax credits finance.
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 LOAN FINANCING EXPERTISE
7 Park Avenue FinancialSouth Sheridan Executive Centre
2910 South Sheridan Way
Office = 905 829 2653
‘ 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 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.