WELCOME !

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 sr ed cra financing. Show all posts
Showing posts with label sr ed cra financing. Show all posts

Monday, February 17, 2014

SR ED CRA Financing : 6 Mistakes To Avoid On A SRED Tax Credit Loan














Here’s The green light
On Financing Your R&D Credit : Financing SR&ED Tax Credits


OVERVIEW – Information on the finance of a SRED TAX CREDIT loan in Canada . SR ED CRA financing involves careful planning and knowledge and timing to achieve maximum benefits





SR&ED CRA
is very much in the news today. Much of that news has to do with the ability to both maximize your claim, and finance, via a SRED Tax Credit Loan , your research spending. We'll focus on some of the current ‘ lay of the land' issues, as well as , equally as important, some of the mistakes you shouldn’t make when financing a SRED claim. Let's dig in.

Just when we thought things have ' settled down' in the world of the tax credit things seem to be heating up again. Why? Part of that is due to the recent federal budget. After making some very significant changes in the program over the last year or two things seemed to settle down quite nicely. Yes some of those changes affected claim size and availability ( elimination of capital assets used in R&D) but some great things happened also - a mini purge of unscrupulous SR&ED consultants, as well as a simplified ( we think!) application program.

The program, simply speaking, allows for government refundable credits on research and development and allows Canadian business owners to recover a huge portion of direct spend on R&D.

Our focus is on financing your R&D credit, so there’s probably no better time to go over some key mistakes
you can make in financing, as well as simply preparing your claim.



Mistake #1
is simply ensuring you're not aligned with the wrong consultant, that mini industry out there that prepares your claims if you or your accountant isn’t doing it yourself. Ensure that you're aligned with a reputable consultant that charges a fair fee or contingency rate. (A huge amount of claims are prepared on ' contingency' at the risk of the consultant)

Not making Mistake# 2 revolves around the timing of your SRED and the ability to time the financing. Claims historically could only be financed after they are filed together with your corporate tax return. That is no longer the case and you can generate financing around your claim even more it's filed if you have a credible claim and can show some experience in this whole area.

Mistake # 3 is ensuring that you understand that if you have CRA arrears of any type you're not going to be able to receive your chq from the government. They will simply net it out or apply it against your arrears. So focusing on the financing of a claim with CRA arrears is not a solid strategy suffice to say.

Mistake #4 involves assuming that your bank might finance your R&D claim. The short answer here is they in general don't do that, and if they will it’s in the context of a larger relationship with yourself with firms that are quite established and have other collateral. Your best bet to ensure proper financing of your claim is to seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can ensure the proper tax credit financing is in place in a prompt, efficient and cost effective manner.

Mistake # 5
. Simple. Don't confuse the IRAP program with SRED. IRAP claims arent financeable, they're a form of pre approved grant that involves up front approval and funding. The best way to think of it is IRAP is direct funding, SR&ED is indirect. In effect the government with an IRAP funding is pre approving your project. That's not SRED.

Mistake# 6
- Don’t lose focus on a quality claim to therefore allow a minimum of audits, appeals, objections, etc. Historically over 3 Billion ++ dollars more in Sred funding has been available on an annual basis over IRAP.

We’re the last to predict where the future of R&D funding in Canada will be going. But understand that as long as you have a claim it’s financeable under very creative structures.




7 Park Avenue Financial = SR&ED Tax Credit Loan 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

Direct Line = 416 319 5769

Office = 905 829 2653



Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing with the intelligent use of experience '