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Thanks for dropping in for some hopefully great business info and on occasion some hopefully not too sarcastic comments on the state of Business Financing in Canada and what we are doing about it !

In 2004 I founded 7 PARK AVENUE FINANCIAL. At that time I had spent all my working life, at that time - Over 30 years in Commercial credit and lending and Canadian business financing. I believe the commercial lending landscape has drastically changed in Canada. I believe a void exists for business owners and finance managers for companies, large and small who want service, creativity, and alternatives.

Every day we strive to consistently deliver business financing that you feel meets the needs of your business. If you believe as we do that financing solutions and alternatives exist for your firm we want to talk to you. Our purpose is simple: we want to deliver the best business finance solutions for your company.



Sunday, October 6, 2013

A SRED Bridge Financing Loan Via Is Just The After Life Of Your Tax Credit Consultants Claim






Embracing SR&ED Claims Via SRED Bridge Loans In Canada

OVERVIEW – Information on financing the SRED Tax credit claim in Canada. This bridge loan , prepared via your consultants SR&ED work provides valuable cash flow and working capital for Canadian businesses wishing to maximize the benefits of the program





SRED Financing
, we can make the case, is really the after life of your SR&ED consultants claim that's been prepared for your firm. We maintain that that financing of a SR&ED claim is really the last spike in the whole tax credit process... and its's a positive one if you're looking to recoup cash flow and working capital from your r&d developments.

The last few years have been somewhat tumultuous in the whole world of this type of tax credit. After a couple years of study some of the' rules of the road were changed' and the whole program, which delivered billions annually to Canadian business simply seemed at risk. But when the dust settled basic funding of your claim was intact.

The SRED process is a combined federal and provincial claim, and using Ontario as an example alone that province funds close to 1/4 Billion dollars in research tax credits annually .(By the way, another 400 Million dollars is funded for the film, TV and animation tax credits. These credits can also be financed. Given that sort of dollar commitment we're wondering if every business owner/CEO of mfg companies wish they were in the movie business!)

How do basic SRED issues affect the financing of your tax credit? It's safe to say, sticking to our basics, that you have to ensure you qualify, your application has to be correct, and you want expertise to maximize the amount of your claim given the somewhat changed new rules around the program.

While the program is administered by Canada Revenue it's your firm or your tax credit consultant/preparer that must prepare and submit the claim SR&ED claims are for all size of privately owned businesses in Canada (public companies don't participate in the non refundable process).

When it comes to financing your claim the role of the sred financing consultant is critical. Given the streamlined new process instituted by the government your goal is simple - clarify and maximize.

In Canada claims are financed in two manners -


1. A SR&ED bridge loan is created out of your already filed claim

2. A credit financing facility is created to fund your expenses that you intend to file and then fund via a SRED bridge loan

While some basic due diligence is always performed on your firm many firms that could otherwise not borrow elsewhere can easily get funding via their SRED Bridge loan. The fundamental reason is that the collateral for the loan is of course the SR&ED credit itself

Some other benefits of financing your tax credit claim? For a starter no payments are made during the whole time the bridge loan is in effect. Your financing costs are deducted at time of funding and realization of your approved claim. Additionally many firms that apply are early revenue, pre revenue, or no revenue as they are just starting to build their business. But the SRED credit can still easily be cash flowed.

So, should the after life of your SRED claim, i.e. the financing of it, appeal to your firm if it files and uses this popular program. It will if your firm wants to monetize your credit and continue to grow your business. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor with a track record of financing claims who can assist you with your SR&ED credit finance solution.



Stan Prokop
- founder of 7 Park Avenue Financial

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.

Info re: Canadian business financing & contact details :



7 Park Avenue Financial = Canadian SR&ED TAX CREDIT Financing Expertise




Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?


CONTACT:
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8


Phone = 905 829 2653




Email = sprokop@7parkavenuefinancial.com





































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