No Grain Of Salt Required ! SR&ED Bridge Loans Work
OVERVIEW – Information on SRED tax credit financing in Canada . SR ED loans accelerate the benefits of Canadian R&D capital investments made for processes and products under Canada’s Scientific Research and Experimental Development ( aka ‘ SR&ED ‘) program.
Sred tax credit financing in Canada (SR&ED) , we maintain, comes with a ' no grain of salt required ' statement attached to it. Most business owners/financial managers would agree that a lot of advice / information/sales pitches they received must in fact be taken with ' a grain of salt ‘! Yet the thousands of firms that take advantage of SR ED loans in Canada have proved that cash flowing their refundable tax credits in Canada's ' SR&ED ) program becomes the final benefit of participating in the program - receiving your cash refund earlier! Let's dig in.
The general nature of Canada's R&D refund program allows companies in any industry to participate. (However they must be privately owned, not ' public' firms). The incentive to recover your cash after the whole SRED process is appealing to thousands of firms who receive billions of dollars in refundable tax credits (aka ' cash ‘! ) based on an ever more simplified application process.
‘Processes’ and ' Products ' are the heart of most of the r&d under the program. SR&ED consultants are the most commonly used third parties who document the costs and activity of your R&D process. They augment the role of your accountant who typically files the claim with your year end tax return - At that point you're ' crystallizing ' your SRED receivable.
While companies choose different accounting treatments to document their SR&ED claim in their financials (‘govt receivable ‘refundable investment tax credit' etc ) the commonality is that you're now in a line up in the whole SR ED process Vis a vis receiving funds.
SRED tax credit financing helps immediately monetize your recovery of wages/materials/ contractor costs etc that are a part of your whole research and development process. We meet clients who have claims ranging from 50k to 1 Million dollars or more. In some cases the cash monetized via your SR ED bridge loan is a critical part of the firms annual cash plan needs. Since the majority of SR&ED claims in Canada are prepared by third parties who work on contingency the financing of tax credit loans makes even more sense - no cash outlay to prepare your claim and no monthly payment for the duration of your waiting period for your refund. (These loans have no monthly payment - they are short term ' bridge ‘finance’)
Business owners/financial managers we talk to are focused on accelerating their claim - that includes the use of a good / experienced SRED preparer, timely filing of their claim, and the choice to finance your credit refund if cash is needed by your firm.
If you're looking to finance your refundable tax credit and eliminate ' waiting ' for your refund seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with discounting your claim for cash .. today.
7 Park Avenue Financial : http://www.7parkavenuefinancial.com
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 = CANADIAN SR&ED TAX CREDIT LOAN FINANCING EXPERTISE
7 Park Avenue FinancialSouth 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 AUTHORStan 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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