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SR&ED Financing Loans In Canada : It’s Not Brain Surgery!
OVERVIEW – Information on financing SR&ED claims in Canada . SR ED loans monetize your refund quickly and efficiently and allow business owners the luxury of not having to wait for their refund / cash
One way in which Canadian business stays ahead of the challenge is via the Canada SRED grant program. Sred claims deliver billions, (that's not a typo - it really is billions) of dollars of non repayable grant funds to firms such as yours. Let's dig in.
How do SR&ED loans assist your firm to stay even more competitive? We tell clients that's because it accelerates the cash flow and working capital that your firm has coming from its R&D claim. Your ability to ' unlock ' sred funds is simply a cash flow accelerator. Clients often ask what the required uses for those funds are if in fact you do choose to finance your sred claim.
What do business owners & financial mgrs utilize the R&D capital refund for? The reality is that the funds can be used for any general corporate purpose - so that includes of course general working capital and cash flow, the purchase or down payment of additional new equipment and technology, or, at its most basic, retirement of short term or long term debt on your balance sheet . Even better? Investing in next year’s research to stay ahead of those competitors!
Your ability to quantify and demonstrate your business processes and advancements can result in hundreds of thousands of dollars of non repayable sred funds under the combined federal and provincial program. Those SR ED consultants that typically prepare claims are experts in that - they prepare the vast majority of claims in Canada.
There isn't a business owner in Canada today, certainly that we have met, that doesn't have some issues and problems with the role of government in business. Want a method of striking back?! Take advantage of sred and sred financing. Sred claims under Canada sred legislation are your encouragement to recover 30-40%, even more in your funds spent in the previous fiscal year.
We advise clients that the process around the financed of a sr&ed claim is much defined. In fact in the current business environment, based on some new rules for claimants, it’s even more defined.
Claims are most successfully financed when they are generated by a proper party - our aforementioned SR ED consultants. Their proven ability to craft and present a claim under new guidelines from the government is key to being able to maximize your claim.
Maximizing you claim maximizes financing, simply because under sred financing a typical advance is 70% of your claim, so the size of your overall total claim determines the financed amount, as in our example of the typical 70%.
It's common knowledge in the SRED industry that a huge majority of companies eligible to claim a sred grant don't do it. We have heard all the excuses, and we won't weigh in on them now, but they typically include - - ' we haven't heard of the program .... Is there an audit involved ... isn't expensive to prepare a claim, we don't have enough time, '''... etc, etc! We would rather preach to the converted.
So if you are filing sred Canada claims and want to accelerate cash flow immediately then consider monetizing your claim. It's a very basic process, via an application, providing back up on you sred, and being agreeable to collateralizing the claim via a basic documented process.
Seek out and speak to a SR&ED tax financing expert to ensure you can easily and effectively enjoy the benefits of sred financing via a cash flow and working capital financing of the claim.
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 :
7 Park Avenue Financial
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
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.
Stan Prokop
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