SR ED Loans SR ED Funding Refundable Tax Credits | 7 Park Avenue Financial

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Financing & Cash flow are the  biggest issues facing businesses today

ARE YOU UNAWARE OR   DISSATISFIED WITH YOUR CURRENT  BUSINESS  FINANCING OPTIONS?

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7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

 

 

 

 

FINANCING YOUR REFUNDABLE TAX CREDITS IN CANADA / SR ED FINANCING!

 

SRED financing does absolutely not have to be a long shot.

 

In fact, preparing and submitting your R&D claim under the sr&ed tax credit program properly helps almost to guarantee your claim can be financed via an SR&ED bridge loan. The Canadian government incentive program around your research for Canadian-controlled private corporations is one of the most popular programs utilized by thousands of firms every year - for billions of dollars, allowing companies like yours to recover research development costs. Let's dig in on funding your sr ed tax credits!

 

It doesn't matter if a  business is small or large, even startups can take advantage of Canada's sr&ed program via a different type of tax incentives that might be an income tax deduction, or a refundable investment tax credit ( ' ITC') -

 

Thousands of companies are successful every year and are eligible to receive their share of the 3 Billion dollars range annual layout of the program supporting research and development in Canada for companies looking to overcome technical challenges and further technical knowledge in their business and industry.

 

  

SR&ED FINANCING IS GROWTH FUNDING FOR YOUR BUSINESS!  

 

SR&ED credits are really accounts receivable within your business and the ability to monetize that receivable provides an additional funding facility for your business - and similar to other credit facilities funds can be used for any general working capital inside the business - Your sr&ed loan is finalized when you receive your payment under the CRA ta credit refund.

  

KEY POINT:    Accrued sr ed credits are financeable now - you do not have to have filed your claim.

 

  

THE IMPORTANCE OF SR&ED IN CANADA  

 

It is 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:

 

- the 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 government and economics folks; we'll continue quietly toiling away in the real world helping those 20,000 + claimants of the program who benefit from billions in refunds from federal/provincial authorities.

 

We'll let others debate these issues, notwithstanding their importance, ad nauseum—our goal - is effective SRED Financing that speeds up cash flow recovery for your R&D capital investment!

 

FINANCING SR&ED CLAIMS FOR CASH FLOW - SRED LOANS SRED FUNDING REFUNDABLE CREDITS

 

The ability of your company to utilize your refundable tax credits to grow businesses is a key aspect of sred finance.  Companies large and small, new and established, can utilize this type of ' bridge loan.' Accessing cash under your claim without having to wait for processing and audits of your claim is a key benefit of the program.

 

The easiest way to view your tax credit is by looking at it as an account receivable from the government. You are simply cash-flowing your tax credit via a funding facility that works -naturally, those funds can be used for any general corporate purpose.  The loan is retired when the Canada Revenue Agency refunds your claim, and no payments on the loan are made until the government processes your claim - financing costs accrue.

 

Cash flow from SR&ED credit factoring (i.e. monetizing your claim) means different things to different types of firms. Many  ' startups' 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 actually benefit from a refundable tax credit for the provincial portion of their claim - those claims are 100% financeable! That's why sr&ed credits are a valuable form of cash flow.

 

  

  

HOW DOES A SRED BRIDGE LOAN WORK? SR&ED FINANCING OVERVIEW   

 

How then does the SRED Funding work?  It certainly helps to ensure that your claim follows the proper admin and filing guidelines under the program. Qualified SR ED consultants prepare the vast majority of claims under a formula for sr&ed tax credit calculation.

 

Aligning yourself with a reputable consultant allows you to help ensure the integrity of your claim. Most of these folks work on contingency, so their work and reputation are at risk also, as well as minimizing your upfront investment in claim prep and filing.

 

QUALIFYING FOR SRED LOANS VIA YOUR SR ED TAX CREDIT

 

Tax credit loans for SRED are funded at 75% of the total value of the claim, and no monthly payments are made during the duration of the loan, which is usually sometime within a 12-month period. The entire loan funding process can usually happen within a couple of weeks -from start to finish.

If your firm receives or will be receiving a refundable tax credit from Canada Revenue Agency, you are, in fact, eligible to finance your claim. The collateral for the loan is your SRED claim- simple as that!

 

Many companies that utilize the SRED  funding program are early-stage and growing companies that need the cash flow that originates out of a claim.

 

  

IS SRED A GOVERNMENT GRANT?   

  

FINANCING GRANTS IN CANADA  

 

Many Canadian businesses take advantage of government grants to help their business - Key areas of a business that include operations, sales, and staff expansion can be grant eligible under certain programs.  Grants can be time-consuming to access but they are also an entrepreneur's dream.

 

Grants are financeable as well and are not loans, they do not have to be paid back.  Businesses must ensure they are eligible for a specific grant as well as properly submit a proper application or in some cases an interview process.  In certain cases grant income might be taxable though, even though it is ' gifted ' so an accountant should be consulted in this regard.

At  7 Park Avenue Financial, we recommend clients submit thorough applications and many entrepreneurs choose to hire a ' grant writer ' experienced in the appropriate kind of knowledge and information the government is looking for to approve a grant. In some cases, a business plan might be appropriate to accompany the grant.

 

  

CONCLUSION - SR&ED LOANS    

 

The investment tax credit is a huge part of Canada's ' knowledge economy '. Focusing on scientific of technological advancement and scientific or technological uncertainty is job 1 for many of Canada's up-and-coming as well as established companies. 

 

If you're looking to monetize your Sred refund claim, seek out and speak to 7 Park Avenue Financial a trusted, credible and experienced Canadian business financing advisor who can outline the benefits of sr ed loans / sr&ed financing from your r&d tax credit on a funding timeline that works for your business and cash management needs!

 

  

FAQ: FREQUENTLY ASKED QUESTIONS  / MORE INFORMATION / PEOPLE ALSO ASK   

 

  

Are SRED credits refundable?  

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