The Silver Lining In The Dark Cloud Of Waiting For Your SR&ED Claim Refund
OVERVIEW – Information on the benefits and utilization of a SR ED Tax Credit Loan in Canada. Financing your SRED Credits is a smart way to accelerate your SR&ED refund
Financing SRED (SR&ED) credits in Canada is one key way in which business owners/manager participating in the program can ' optimize ' the benefits of this popular program. We're maintaining that a SR ED Tax Credit Loan is in effect a great ' silver lining in the dark cloud “of ... waiting for your refund. Let's dig in.
There are also other ways in which you can, effect, monetize your SR&ED filing each year. It's your way of course to take part of the 3 Billion $+ the federal and provincial governments typically spend on the program each year. The double whammy of receiving a refundable tax credit while at the same time maintaining your competitive stance is clearly a key driver in utilization of the program.
Whether it's simply filing your claim, or financing it your company is constantly in a 'waiting game’. In fact certain deadlines for filing and having your claim adjudicated are in fact cast in stone in Canada Revenue Agency rules. Their service standards are clearly laid out. By the way the financing of your refund allows you to leap frog the timelines in question.
Optimizing your claim, including considering a SR ED tax credit loan revolves around the proper preparation of your refund claim. While a very small portion of firms prepare and write their own claims typically this work is most effectively completed with the services of a ' SR&ED Consultant.
A good consultant will also lend credibility to your SRED finance loan application in that their work in areas of writing the narrative to your claim, as well as properly itemizing the costs is to key our ' optimization ' them . Who wouldn’t want to have a goal of ' fast tracking ' CRA' in areas of eligibility, expenses incurred, and co-coordinating the filing with your accountants. That ' notice of assessment ' followed by your refund cheque is clearly the goal line!
It's important to note that since SR&ED refund claims are filed only when you have completed your year end financials and corporate tax return this simply enhances the temptation of accelerate your refund via a SR ED tax credit loan.
Very few could argue that the funds you receive under the program (typically in the general range of 35% of all monies incurred in R&D) is valuable cash flow. Many firms who are start up or early revenue will attest to this!
Financing SRED Credits is of course an option, not a requirement. Only firms who are looking to accelerate cash flow should consider the SR ED tax credit loan. You need to give consideration to the overall timing of your claim as well as the actual need for funds. Typically your firm would use the proceeds of a SR&ED bridge loan for general working capital purposes in any area of their business
Financing your refundable sred tax credit couldn’t be simpler. The loan is structured as a bridge loan for 70% of the total value of your claim. No monthly payments are required, as financing costs ' accrue’, thereby making the loan even more attractive from a viewpoint of cash outlay. And by the way, you can start financing yesterdays SRED, today’s claim, and next years claim... whenever you wish.
Looking to ' optimize' the benefits of the Canadian govt R&D program? Finance your refund with the assistance of a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with your cash flow needs.
7 Park Avenue Financial :
Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations . Info /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 '
ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.
Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.
Stan Prokop
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