SRED Tax Credit Financing SR ED Loan SR&ED | 7 Park Avenue Financial

YOUR COMPANY IS LOOKING FOR SR&ED TAX CREDIT FINANCING!

SR&ED FINANCING  =  USE YOUR  SR&ED REFUNDABLE TAX CREDITS FOR GROWTH FUNDING FOR CANADIAN BUSINESSES

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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?

CALL NOW - DIRECT LINE - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs

EMAIL - sprokop@7parkavenuefinancial.com

TO FINANCE YOUR SRE&ED CREDIT OR NOT - THAT IS THE QUESTION! 

SR&ED Tax credit financing is all about making the most out of a good thing. That good thing is of course the SRED  credit program that refunds your R&D capital investment under government tax incentives -  It's important you contemplate that type of loan for the right reasons - that's just solid business sense. Let's dig in on Sred Canada!

HOW CAN SR&ED-ELIGIBLE COMPANIES  BENEFIT FROM  FINANCING SR ED TAX CREDITS?

We're covering exactly what you need to know about maximizing your participation in what’s known as the Canadian Government's Scientific Research and Experimental Development offering; in the layman's world call it the SR ED, or SR&ED program. It's the single largest federal program to help Canadian business

Leave it to the government to use that formal terminology and acronyms for the reward for achieving technological advancement and scientific knowledge!

OPTIMIZING YOUR CASH FLOW

Whether you have never heard of the program at all, or are a first-time claimant for your share, or if you are one of the lucky ones and have been filing for years for your share of the 3 Billion dollar pie you are clearly in line to hear some great news.

WHAT IS SR&ED FINANCING?  

SRED Loans are the financing of refundable tax credits under Canada's Scientific Research and Experimental Development (SR&ED) tax incentive program for businesses who conduct r&d in Canada to access government funding - No surprise that this program is Canada's largest funded program for Canadian businesses with a funding timeline challenged only by the waiting process.

The ability to maximize working capital during the innovation process is a large win for any business. Talk to the 7 Park Avenue Financial team about a simple application process and a timeline you will be impressed with for financing government tax credits to increase positive cash flow in your business. Maximizing sr ed credits for this type of financing allows a business to improve cash inflows when they are needed most.

SR ED financing is available to the thousands of businesses every year who earn their share of the 3 Billion dollars in refunds processed by CRA/Canada Revenue Agency. The timeline to process refunds can be lengthy - but SRED loans change that! For firms that have filed tax returns for their tax year, or even if they have documented accrued credits working capital is on the way via Sred finance solutions. These loans don't  bring long-term debt to the balance sheet - you are simply monetizing a government account receivable - Some call it ' factoring SR&ED "

An income tax deduction is allowed for firms not eligible for the refundable tax credit.

Every business owner, small, large and start-up is always concerned about the dilution of owner equity - maximizing cash flowing through your tax credits avoids any dilution when equity is at its most valuable.   Financing SR ED claims allows you to grow your business strategically, maintain your equity ownership and receive financing on your r&d timelines without the bulge financing needs that occur in any business.

Many businesses also explore high-interest short-term workng capital loans, known as MCA's to access cash - using the right Sred loan eliminates high-interest debt from other business capital sources.

What is that news? It's simply that for the right reasons your ability to cash flow, monetize, borrow against, factor, whatever you want to call it, your Sred credit can be an effective way of increasing your working capital and cash flow.

Frankly, it's really simple. Your company is eligible for a refund on expenditures that have been verified under the program for R&D expenditures.  Thousands and we mean thousands of businesses, many of them your competitors, are receiving cheques from the government, that are non-repayable for your investment in R&D processes, products and services.

If you are not missing out on filing your claims are you missing out on effective sred credits financing?  You just might be.  We strongly believe that utilizing a sred loan for the right reasons. That reason - staying ahead of the cash flow game!

Let's examine why effective sred financing via a sr&ed loan makes sense. The main condition? Your firm needs cash flow and working capital for payables reduction, further investment, equipment, and general operating expenses! Who doesn’t?

Monetizing your sred tax credit is simply borrowing against a rebate that is coming to you from the federal and provincial governments via your sred claim. 

 FUNDS TODAY - NOT WAITING FOR FUNDS TOMORROW! 

Is there anyone in the room who disputes funds today are better than funds tomorrow? We don't believe you will argue with us on that.

If you are part of the program or considering the sr&ed program from a participation point of view you should consider financing your claim after it's completed. In actuality, you can finance it immediately after it's filed, or in many cases, as you are expending funds! By the way, you can also fund your tax credit before it's filed!

SR&ED financing is simply the monetizing of that account receivable (that's really what your sred claim has now become) to use the cash for any worthwhile corporate purpose.  A sred loan for the right reasons allows you to increase cash flow, and simply stay more competitive - which you probably already are given you are investing in r&d type work.

Effective sred tax credit financing works best when it’s done quickly and efficiently at competitive rates - no payments are made by your firm and the proceeds of your sred loan are netted against the final cheque your firm is due.

Remember, you've got choices - you can play the waiting game and wait for 3, 6, or 12 months for your sr&ed cheque. By all means, do - but remember your competitor got their cheque today by effective use of a sr&ed tax credit finance strategy. That's something to think about!

CONCLUSION - SRED FINANCING 

No secret that cash management is a challenge for the majority of small innovative companies in Canada.  Talk to 7 Park Avenue Financial about how to easily access funding at the most competitive financing costs for your investment tax credits, or grants!

We'll ensure that a financing timeline is established to  access funding for filed or accrued credits - Which brings predictability to cash projections you can make with capital or r&d budgets within your capital structure 

THE BOTTOM LINE? Speak to  7 Park Avenue Financial, sr&ed financing experts, and your trusted, credible and experienced Canadian business financing advisor who's an expert in refundable tax credit finance. Let us help you out with your tax credit and grant financing needs. We will answer all your questions around such areas such as the need for a sr&ed consultant in borrowing on your SRED  and the key qualifiers around funding your claim before you have filed, as well as typical durations of SR ED loans and how fast you can receive funding for your claim!

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

What is a SR&ED Loan?

SR&ED loans for a sr ed claim for a Canadian-controlled private corporation allow a business to finance their investment tax credit pending sr ed refund under a sr&ed tax credit calculation, which typically is in the 30+ % range on qualified eligible expenditures under sr&ed CRA guidelines in areas of wages, consultant fees, and materials utilize in the r&d  process to conduct research for scientific and technological advancement.

SRED tax credits are receivables that can be financed under a line of credit type facility and utilized for other r&d work or general working capital needs that arise in any business. The SR ED loan is terminated /closed when the CRA issues the tax refund.

SR&ED tax credit  eligibility and approval for sr ed funding is always enhanced when an experienced sr ed consultant is utilized to write a claim or grant for an sr ed project

Can Grants Be Financed?  

Grant financing is available for many of the grant programs provided by the Canadian government, whose goal under the program is to enhance and support business growth and scientific or technological advancement.  Eligible companies can have their grants financed which allows a company to accelerate the cash flow timeline that occurs with grants. The ability to access capital sooner is a huge benefit to firms challenged by cash flow needs in earlier stages of the business.

Many grant programs involve collaboration with the government of various educational institutions. Typical grants involve payment of 50% of the cost of a project, in other words, a matching process. Canadian NSERC grants are a good example. The IRAP program is widely known for helping Canadian businesses with the expertise and funding they need to complete research.

There are many grant programs available, all with varying funding amounts, criteria and timelines. Many grants are awarded on a limited basis making it important to access the best and most appropriate programs for your business as funds in government budgets may be already used up. Unlike SR&ED Credit incentives, grants require you to apply for funding before you incur any costs, as you must pre-qualify to receive funds. In some cases, a grant might affect your SR&ED Claim in some manner.