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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.



Showing posts with label SRED PROGRAM claims. Show all posts
Showing posts with label SRED PROGRAM claims. Show all posts

Monday, December 23, 2013

Sred Program Claims : Become Master Of Your Domain When It Comes To Tax Credit Financing















Financing Your R&D Claim In Canada – The Why – The How !







OVERVIEW – Information on financing SRED ( SR&ED) program claims in Canada. SR&ED tax credit financing makes more sense than you think!






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 program? Let's dig in.

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.

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.

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.

The key to achieving SRED approval is of course a ' quality ' claim.
Many first time claimants we talk to sometimes struggle with 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.

In the last couple 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 SRED 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.

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!

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.

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.

So yes, you can wait 3, 4, 6, even 12 months sometimes to receive your SR and ED claim funding chq, 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 Financing Advisor with a track record of success
with tax credit financing for SRED Program claims expertise.




Stan Prokop - 7 Park Avenue Financial :

http://www.7parkavenuefinancial.com


Business financing for Canadian companies , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded in 2004 - Completed in excess of 90 Million $$ of financing for Canadian corporations .

Info re: Canadian business financing & contact details :


7 Park Avenue Financial = Canadian SR&ED Tax Credit Finance Expertise



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7 Park Avenue Financial

South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line
= 416 319 5769

Office = 905 829 2653


Email =
sprokop@7parkavenuefinancial.com


' Canadian Business Financing with the intelligent use of experience '