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Should You Cash Flow Your SR&ED Tax Credit ? Only If You Want The Funds Today!
OVERVIEW – Information on sr&ed tax credit financing and why a sr ed loan can increase working capital and cash flow and is an effective use of the government sr&ed program which provides billions of dollars of non repayable cash to Canadian firms.
We're covering off exactly what you need to know about maximizing your participation in what’s known as the Canadian governments Scientific Research and Experimental Development offering; in the layman's world call it the SR ED, or SR&ED program. Leave it to the government to use that formal terminology and acronyms.
Whether you have never heard of the program at all, or are a first time claimant for your share, or , if you are one of the lucky ones and have been filing for years for your share of the 3 Billion dollar pie you are clearly in line to hear some great news .
What is that news? It's simply that for the right reasons your ability to cash flow, monetize, borrow against, factor, whatever you want to call it , your sred tax credit can be an effective way of increasing your working capital and cash flow .
Frankly it's really simple. Your company is eligible for a refund on expenditures that have been verified under the program for R&D expenditures. Thousands, and we mean thousands of businesses, many of them your competitors, are receiving cheques from the government, that are non repayable for your investment in R&D processes, products and services.
If you are not missing out on filing your claims are you missing out on effective sred tax credit financing. You just might be. We strongly believe that utilizing a sr ed loan for the right reasons . That reason - staying ahead of the cash flow game!
Let's examine why effective sred tax credit financing via a sr&ed loan makes sense. The main condition? Your firm needs cash flow and working capital for payables reduction, further investment, equipment, and general operating expenses! Who doesn’t?
Monetizing your sred tax credit is simply borrowing against a rebate that is coming to you from the federal and provincial government via your sred claim. Is there anyone in the room that disputes funds today are better than funds tomorrow? We don't believe you will argue with us on that.
If you are part of the program, or considering the sr&ed program from a participation point of view you should consider financing your claim after it's completed. In actuality you can finance it immediately after it's filed, or in many cases, as you are expending funds! By the way, you can also fund your tax credit before it's filed!
SR&ED financing is simply the monetizing of that account receivable (that's really what your sred claim has now become) to use the cash for any worthwhile corporate purpose. A sr ed loan for the right reasons allows you to increase cash flow , and simply stay more competitive - which you probably already are given you are investing in r&d type work .
Effective sred tax credit financing works best when it’s done quickly and efficiently at competitive rates - no payments are made by your firm and the proceeds of your sr ed loan are netted against the final cheque your firm is due .
Remember, you've got choices - you can play the waiting game and wait 3, 6, or 12 months for your sr&ed cheque. By all means do - but remember your competitor got their cheque today by effective use of a sr&Ed tax credit finance strategy. That's something to think about.
Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who's an expert in refundable tax credit finance.
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 .
7 Park Avenue Financial
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Office = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
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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