OVERVIEW – Information on tax credit financing in Canada. A SR&ED loan has Canadian firms thinking differently on their r&d capital investment. SRED finance works by maximizing the cash flow timing around your claim . Here is how and why.
SRED Financing in Canada is all about using tax credit financing for the right reasons. Maximizing Canada’s r&d program via a SR ED loan is all about reaping the final benefit of the program – ‘ Cash ‘ Let’s dig in .
It’s important to view financing your SR&ED credit as an option that’s your choice as a business owner/financial manager. It’s simply one more way to assist in both the R&D portion of your business as well as your general financial health. Simply speaking, being eligible for the program makes you eligible for the financing.
Refundable SR&ED credits are of course for privately owner companies in Canada. They, along with their counterpart, film tax credits are administered by CRA – Canada Revenue Agency.
Financing your SRED claim is all about cash flowing your refund – many businesses that utilize the program are at various stages of what we can call their ‘ life cycle ‘. In fact many firms that choose to monetize their claim are in start up or very early stages of development. It’s at these times that cash flow and working capital are most important.
What then are the typical uses of cash when financing your R&D claim? Typically they include:
Funding additional research – many companies have an ongoing R&D program annually
Utilizing the funding to move their R&D into new markets – aka Revenues!
General working capital needs – payroll, supplier commitments
Financing growth via new orders/contracts, etc
Some clients we meet often speak of the additional time commitment required to prepare the claim. Naturally a lot of that time commitment can be eliminated by both having documentation in place, and even more importantly ‘ tying your horse ‘ to the right SR&ED consultant – it’s these folks that prepare the claims for this industry. Naturally a good consultant will maximize your claim.
Utilizing the right consultant adds legitimacy to your claim – and categorically speeds up the process both in writing your claim and ensuring it moves through the govt processes at ‘warp speed ‘ .Businesses will appreciate that not all govt programs move at warp speed!!
By the way, if you’re looking for proof of the benefits of the program you need only understand that thousands of firms just like yours (including your competitors) reap almost 3 Billion dollars a year in refunds.
A SR ED loan is all about needing, and getting your money now. It’s your chance to beat the ‘ waiting game ‘ as refunds can take anywhere from 3-12 months depending on the complexity, size and filing time of your refund claim. In fact the entire finance process, when you’re working with the right firm can take only a couple weeks to receive funding.
SRED Finance typically monetizes 70% of your total claim. For example a 200k claim will net you 140k in loan proceeds. Really the simply way to look at it is to view the SR ED claim as an account receivable of your business – and you’re simply borrowing against that asset . By the way the financing costs of a SR&ED loan are built into one final balloon payment at the end of the loan – this is a bridge loan with no monthly payments.
If you’re looking to ‘ think differently ‘ on your SR&ED refund and want to consider the benefits of financing that claim today 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 cash flow needs.
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 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
Direct Line = 416 319 5769
Office = 905 829 2653
Email = firstname.lastname@example.org
‘ 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.
7 Park Avenue Financial
Canadian Business Financing