Information on SR&ED TAX CREDIT financing in Canada. Why business owners and financial managers might consider a SRED loan as additional working capital and cash flow. Key tips on SR&ED financing
SRED financing of your SR&ED tax credit is somewhat of a boutique finance industry in Canada. It is very rare that your bank will finance the claim. We certainly don't agree with that, because in effect it is an account receivable, and they do finance receivables, don't they??! Anyway, your firm will have to have a strong borrowing relationship with a bank to finance your claim. The reality is that this type of financing is best and more quickly achieving via a SRED financing specialist.
Rates for SRED financing vary, and factors that affect the rate tend to be size of claim, your company's current financial position ( many SRED claimants are early stage, pre revenue, etc ), as well as the perceived quality of your claim.
A SRED loan is not debt per se, that's important to understand, you are simply monetizing, or ' cash flowing ' one of your receivables, in this case the SRED. SRED loans are structured as no payment loans and the final financing charges are simply deducted from the final cheque you receive from our good friends in Ottawa.
SRED financings can be processed, and funded in as little as two weeks - very standard application paperwork is involved, and the main collateral is or courses the SRED itself.
Here's some final tips we promised - have your SRED prepared by someone who knows what they are doing, SRED consultants are the best in this area as they are specialized. Count on receiving at least a 70% advance on your claim. Also, did you know that under certain conditions your SRED can be financed prior to filing?
We've e shared some tips and procedures that will allow you to consider financing your claim. If additional cash flow and working capital are important considerations speak to a trusted, credible, and experience business financing advisor to validate your SRED loan options.
Stan Prokop - founder of 7 Park Avenue Financial –
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Office = 905 829 2653
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.
Article Source: http://EzineArticles.com/expert/Stan_Prokop/432698
Article Source: http://EzineArticles.com/5140149