Our blog highlights Canadian Business Financing solutions via receivable finance , equipment finance, working capital financing, asset based lending, business acquisition financing,franchise finance, and tax credit monetization via SRED and Film Tax Credits. Our goal is to educate and assist Canadian businesses with their financing needs. You Are Looking For Canadian Business Financing! Welcome to 7 Park Avenue Financial Call Now ! - Direct Line - 416 319 5769
Saturday, January 22, 2011
Effective Sred Tax Credit Financing – Using A SR ED Loan For The Right Reasons
Would your company like to make the most out of a good thing in business - Effective sred tax credit financing, we think you'll agree, does just that. Contemplating a sr Ed loan for the right reasons to us just makes solid business sense.
Lets cover off exactly what you need to know about maximizing your participation in whats known as the Canadian governments Scientific Research and Experimental Development offering - we in the layman’s world call it the SR ED , or SR&ED program . Leave it to the government to use that formal terminology!
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 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 tax credit can be an effective way of increasing your working capital and cash flow .
Could it be any simpler? 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 tax credit financing. You just might be. We strongly believe that utilizing a sr ed loan for the right reasons is a great way to stay one step ahead of the working capital game .
Let’s examine why effective sred tax credit financing via a sr Ed loan makes sense. Generally it only makes sense under one single condition - its that your firm needs cash flow and working capital for payables reduction, further investment, equipment, and general operating expenses .! We are quite sure you are already in that group!
Monetizing your sred tax credit is simply borrowing against a rebate that is coming to you from the federal and provincial government via your sred claim. Is there anyone in the room that 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!
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 sr ed 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 its done quickly and efficiently at competitive rates - no payments are made by your firm and the proceeds of your sr ed loan are netted against the final cheque your firm is due .
Want to wait 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.
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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 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :
http://www.7parkavenuefinancial.com/sred_tax_credit_financing_sr_ed_loan.html
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