YOUR COMPANY IS LOOKING FOR CANADIAN BUSINESS FINANCING!
SR&ED CANADA LOANS AND THE GOVERNMENT SMALL BUSINESS LOANS
You've arrived at the right address! Welcome to 7 Park Avenue Financial
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
FINANCING SR&ED TAX CREDITS IN CANADA & THE SBL LOAN
Government business loan funding in Canada, as well as the ability to access SRED tax credit loans, are two excellent ways to help fund your company. While many clients we speak to are looking for the proverbial 'grant,' the concept of applying and qualifying for grants is a challenge - but if your company does qualify for a grant many of those grants can be financed.
Want to raise capital and generate more cash flow - Let's dig in!!
For companies seeking SME COMMERCIAL FINANCE solutions, these programs stand head and shoulders above - these 2 programs fund over 12 Billion dollars each year when we consider both programs.
THE BENEFITS OF FINANCING YOUR R&D CLAIM - GROWTH FUNDING VIA SR&ED FINANCING
Cash flowing your tax incentives is a fast efficient way to get working capital back to your business.. and working!! The ability to receive funding within a short period of time ( usually a week or two ) allows you more effectively manage the cash available via government funding programs such as SR&ED. The ability to be cash flow positive at a time when your company is growing and making further investments in r&d for future growth is what the SR ED tax credit financing loan is all about.
Business owners should view financing strategies such as SRED loans for sr ed tax incentives as funding for their refundable investment tax credit that is non-dilutive to the equity in their business, while at the same time delivering more cash at a time when it's needed most. It's r&d capital on your terms and timelines and delivering predictable cash flows based on your investments and eligibility.
You can also finance the accrued credits of your ITC refund prior to filing your year-end claim - Grants can also be funded in a similar manner under the accrued spend process.
You’ll receive the accrued portion of your ITC refund or a future portion of your grant funding paid to you on-demand.
BEATING THE SR&ED WAITING GAME!
It's not a secret that government processing time can take longer than expected - in some cases a full year or more depending on claim size, audit request, etc - Funding sr ed claims gives you working capital now and more control over your spending.
THE CANADA SMALL BUSINESS FINANCING PROGRAM
While many may consider anything to do with government as 'overwhelming,' the reality is that both programs are straightforward. The Government Small Business Loan, aka the ' SBL, 'it's available to all new or established firms with revenues under five Million dollars. We also note that the program does not apply to publicly listed companies.
How can you qualify for the program, and, more importantly, do you qualify? Customers need to review the classes of assets that can be financed. The program's true power is that the rates are only 3% over prime. Terms of repayment are 5-10 years, and are you ready; a full personal guarantee of payment is not required!
How do firms such as yours (or your competitors!) use this type of loan financing? Typically these programs are used by companies to acquire assets, improve their business, purchase or develop software, and even in some cases, buy commercial real estate.
While we note that even business real estate can be financed with limited guarantees and great rates and terms, although the program is typically utilized for the purchase of equipment and funding leasehold improvements.
If business principals feel adequately prepared to source out this program's financing power, we strongly recommend that they begin this process. However, not everyone has the time for what is necessary to maximize their refundable tax credit, as well as the financial skills or acumen, and the ability or comfort level to complete this financing and maximize the sr&ed tax credit calculation.
Those people should seek out the aid of a trusted advisor and business financing expert to maximize their participation in the program for your sr ed tax credit claim.
WHAT IS THE SR&ED REFUND VIA SR ED TAX CREDITS?
The sr&ed refund for sr ed tax credits is an Investment Tax Credit ( ITC) for a Canadian controlled private corporation participating in CRA's Scientific Research & Experiment Development Program that is available to business taxpayers investing in R&D based on numerous eligibility factors.
Still, looking for that 'free money? Does it exist? Again, not really. But would you like to receive a check from the government for any processes, research or innovation that your firm has developed? If so, you want to maximize your participation in the government's SRED tax credit program via CRA / Canada Revenue Agency.
TAX CREDIT FINANCING
Looking for a faster option for your SRED claim? Once your firm or your SR&ED consultant has filed and prepared the claim for your tax credits, your refund can be financed, generating immediate cash flow via a bridge loan.
Claims that are financed under sr ed financing are structured as short term bridge loans - no monthly payments are made for the loan period, and typical loan to values are 75% of your claim via sr&ed tax credit eligibility.
CONCLUSION - GOVERNMENT BUSINESS LOANS / SR&ED FINANCING
Government small business loans and SR&ED finance solutions are a stable source of growth funding that continues to grow while traditional debt becomes more expensive with rising interest rates and worldwide economic challenges, including slowdowns in VC funding.
If you're looking to explore the finance possibilities around the Canadian government small business loan or financing sr&ed tax credits speak to 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can assist you with cash flow & capital solutions that make sense for Canadian businesses focused on business growth.
FAQ: FREQUENTLY ASKED QUESTIONS / PEOPLE ALSO ASK/ MORE INFORMATION
Is SRED a government grant?
The Scientific Research & Experimental Development (SR&ED) program is not a grant per se but instead provides refundable tax credits to Canadian firms conducting research projects and r&d innovation in products and processes - CRA SR&ED, along with the CSBF loan program provides billions of dollars of funding to Canadian businesses.
The SR&ED tax incentive program and Canadian grant programs are helpful to companies that invest in innovative projects.
What qualifies for SRED? SR&ED Tax Credit Eligibility
For Candian companies to claim sr ed credits r&d qualified sr ed work must demonstrate the ' advancement of scientific knowledge' via efforts under the sr ed investment tax credit program.
How does the SRED financing process work?
Funding SR&ED in advance can be accomplished even prior to your fancial year end - Under a bridge loan structure for your accrued SRED tax refund spending claims can be processed and funded within a matter of weeks. Basic information on your company, who prepared your claim on the tax incentive ( typically a sr ed consultant ) will quickly determine the amount of the loan -
The collateral for the loan is the SR ED refund itself, which in effect is an account receivable of the business form the federal government. That advance funding provides valuable cash to the business for reinvestment for general corporate purposes, including continued r&d efforts by a company.
Software development firms are large users of the program in the digital economy. The loan principal requires no payments during the term of the loan .
What is Grant Financing?
FinancIng grants in Canda is available to business who qualify for eligible grant programs funded by the Canadian government . The purpose of these programs is to grow Canada's economies in all sorts of industries. Grant financing complements these programs allowing business to accelerate the funding due them under qualified programs. Typically firms hire exper third party grant writers to maximize funding via these claims.
