Maximize or minimize ? What's best in Canadian business. In the case of taxes it’s minimize! In the case of cra sred R&D tax credits it’s maximize for advantages of cash flow!
Whether you are in Ontario or quite frankly in any of the rest of Canada how could you not afford to file a sr&Ed claim for the R & D your firm does on its innovative products and services? We are of course talking about the Canadian Scientific Research and Experimental Development tax credit program which provides refundable funds for a very significant portion of the funds your Canadian business spends every year in this key area the economy - i.e. the competitive edge area!
And, getting back to our maximize or minimize issue, recent figure suggest that almost 4 Billion (yes that’s billion with a b!) of cheques are going out every year to Canadian businesses such as yours. As we have said in the past, we are pretty sure you want those cheques to be cashed by your firm and not your competitor, since the funds don’t have to be paid back.
So, lets assume you are aware of the program, (many aren't) and lets further assume you are using the program either on a first time basis, or, if you're very lucky, you're a repeat offender! You therefore should be aware that your claims can be financed so you can take advantage of cash flow and working capital that would be beneficial to your firm today.
Many sred consultants (they are the specialized firms that prepare these claims) tell us that a proper preparation of your claim can exceed your initial estimates of what you can received by sometimes 11-200%. So you ability to create CRA SRED R & D tax credits that are of solid quality , file the claim, and then finance it for working capital simply accelerates all the benefits of the program .
Do you have to finance your claim? ask clients often? Naturally the answer is definitely not, but we certainly think you should consider it. Think of your claim as simply an account receivable, which of course it is. It's just that it's a very high quality receivable because it is a non repayable cheque that’s due your firm from the federal and provincial government. So in considering financing the claim you can of course simply wait for your cheque , or you can monetize, or 'factor' , or ' discount ' the claim . (All those terms are interchangeable and mean the same thing.)
Are CRA SRED R&D tax credits difficult to finance if you want the advantages of cash flow. Well, consider we a bit biased but we don’t think so, it’s a simple business financing application, with the additional back up being your sred claim and the required ability for your firm to be able to offer the tax credit up as collateral.
Speak to an experienced, trusted, and credible Canadian business financing advisor today to get more info on either the program itself of the financing of those R &D tax credits.
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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_cra_ontario_r_d_tax_credits.html
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