YOUR COMPANY IS LOOKING FOR A SRED BRIDGE LOAN – FINANCING YOUR SR EDR&D CLAIM IN CANADA!
You've arrived at the right address ! Welcome to 7 Park Avenue Financial
Financing & Cash flow are the biggest issues facing business today
ARE YOU UNAWARE OR DISSATISFIED WITH YOUR CURRENT BUSINESS FINANCING OPTIONS?
CALL NOW - DIRECT LINE - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs
EMAIL - sprokop@7parkavenuefinancial.com
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Financing Sred Program claims in Canada is big business. Why should the business owner/ financial manager consider tax credit financing under Canada's SR&ED tax credits program? It's a great incentive program for Canadian companies. Let's dig in.
THE CANADIAN GOVERNMENT PAYS OUT BILLIONS OF DOLLARS EVERY YEAR IN REFUNDABLE TAX CREDITS FOR ELIGIBLE PROJECTS FOR CANADIAN COMPANIES
Several billion dollars of Canadian govt funds are given each year to the several thousand firms in Canada that participate in innovation and technology via their funded research. 'Canada Revenue Agency CRA ' administers the program (which is a part of the income tax act ) for Canadian controlled private corporations who are eligible for a claim under this tax incentive program and who invest in improving existing technological uncertainty in their products and processes. It's technological advancement 101 and Canadian know-how!
ENSURE YOU UNDERSTAND THE PROGRAMS AND AVOID MISCONCEPTIONS
Numerous misconceptions exist around the program - issues such as ' who is eligible ' ... 'are start-ups eligible ' ... 'does a company have to be profitable to claim SRED ', etc. By the way, even if your firm is unincorporated you could still apply for SRED funding!; Although the majority of claims submitted and that are financed tend to be for legal Canadian entities.
ANY SIZE FIRM CAN APPLY FOR REFUNDABLE TAX CREDITS IN CANADA'S SCIENTIFIC RESEARCH AND EXPERIMENTAL DEVELOPMENT PROGRAM
The reality is that even companies that are in the pre-revenue, or in the early stages of gaining sales traction can still apply, and no, you don't have to be profitable yet. And the amount to be claimed? It varies by province because it’s a combo of federal and provincial monies, but as a broad rule typical SR&ED claims amount to approx. 40% of your total spend in R & D innovation and process improvements.
USE A GOOD SR&ED CONSULTANT FOR YOUR CLAIM
The key to achieving SRED approval is of course a ' quality ' claim. Many first time claimants we talk to sometimes struggle with the preparation of their claim. Here's where the word ' expert' truly has meaning, as SR&ED claims are, more often than not, prepared by external consultants ( 'SR&ED Consultants/Engineers ' ) who have experience and expertise ( hopefully!?) in your industry.
CHANGES IN SR&ED OVER THE YEARS
In past years a ' crackdown' of sorts has occurred around these consultants, with questions being raised about the fees they charge, which are often on a contingency basis ., and the aggressiveness of claims that are filed. Since we're addressing SR&ED tax credit financing you can assume that who prepares your claim and the quality of that claim is one of several important factors that play a role in financing.
YOUR SRED CREDIT IS ACTUALLY AN ACCOUNT RECEIVABLE FROM THE GOVERNMENT - SO IT CAN BE FINANCED!
Companies claiming SR&ED credits typically, and correctly so, view their filed claim as a ‘Receivable’. Naturally, it's a government receivable, the one issue being of course that until your claim is audited and approved it's not 100% clear that it will is 100% approved! So many firms book that receivable, some book a more conservative amount, and then the ' waiting game' begins!
WHY FINANCE YOUR SR ED CLAIMS
The financing of your SR & ED claim alleviates of course the ' waiting' for the financial and technical audits that come from the program. We'll never fully understand why, but banks are more than reluctant to finance these claims, and when they do so, as we have pointed out in the past, it’s in the context of their entire relationship with your firm, including external collateral they hold.
THE SR&ED BRIDGE LOAN
Enter' SR and Ed ' financing. The finance process around your claim is very straight forward, a simple business application and accompanying data is all you need to get started. Innovation exists even in financing! , so claimants will be surprised to know that recent trends in SR&ED bridge loan financing allow firms to receive financing prior to their claim being filed, which was not always the case.
WAIT WAIT FOR YOUR REFUND? FINANCE YOUR CLAIM NOW
So yes, you can wait for 3, 4, 6, even 12 months sometimes to receive your SR ED tax incentives claim funding cheque, but if your firm requires or can use the additional working capital and cash flow now seek out and speak to a trusted, credible and experienced Canadian business advisor with tax credit financing for SRED Program claims expertise. It's a great way to recover research and development investments.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
7 Park Avenue Financial/Copyright/2021/Rights Reserved
