Sr&ed Tax Credit Financing : Your Cash Flow & Sred Loan How To Primer

What If … Your Firm Could Get Funding Today for Your Future SR&ED Tax Credit Financing ?

OVERVIEW – Information on sr&ed tax credit financing in Canada. A Sred loan unlocks the cash flow in your refundable tax credit claim

Sr&ed tax credit financing allows owners/financial mgrs to fully explore the cash flow potential of Canada's Sr ed program. Let's dig in .

Whether your business is a first time, or multiyear claimant everyone is in the same boat - waiting for the refund cheque. Occasional audits of either your technical claim or the financial aspect of the claim can further prolong your receipt of funds.


In talking to many clients we can safely say that most firms who have a commitment to R&D capital probably could put those funds to alternative uses.

Clients we meet use sr&ed refunds for working capital, buying new equipment, reducing payables, and of course also furthering their R&D enhancements. In essence you're enhancing and continuing to expand your business.

Therefore as powerful a tool as a sred claim is the reality is that it itself can create short term cash flow problems. Those challenges are on top of the ones Canadian business owners and financial managers face every day, slow receivables, demanding payables , opportunities to purchase more inventory , or in some cases invest in equipment and long term fixed assets .

How then does monetizing your SR&ED claim address your overall working capital and cash flow position. Simply that you can monetize your claim as soon as you file it, or even while you're preparing the claim .That's called a SR&ED accrual or Sr ed credit line facility .

SRED, aka SR&ED tax credits are financeable! So you ability to finance your claim simply allows you to receive approximately 70% of your claim today in the form of a SRED bridge loan. And remember, that's not additional debt on your balance sheet, since the sred loan is in fact offset or collateralized by the full value of your actual sred refund.

Talk about kick starting cash flow - you're receiving cash for non repayable refundable tax credits under the program.

So how difficult to finance your sred claim? It involves a very typical business financing application, as well as full backup for your sred claim, including who prepared it, details of any previous year's submissions and approvals, etc.

Even if your firm is experiencing financial challenges you are still very much in the position of being able to discount, or in effect factor your sred claim, because that is the asset that supports the financing . Many firms that look to SRED Loans for cash flow are also start ups in many cases, or at a minimum early stage firms - in all industries.

A Sred cash flow loan can be completed in a week or two assuming your full ability to provide back up on the claim, info on your firm, etc. It's a very basic process.

Speak to a trusted, credible and experienced sred finance expert who will no doubt help them accelerate the sred financing.


Stan Prokop - founder of 7 Park Avenue Financial –

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 13 years - Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing. Info & Contact Details :
http://www.7parkavenuefinancial.com

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