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See How Easily Your SRED ( SR&ED) Claim Can Be Financed
Information on SR&ED financing in Canada. A SR&ED bridge loan for your refundable tax credit claim can be monetized for immediate cash flow and working capital
SRED. aka ' SR&ED'. The dust seems to have finally settled on the SRED Tax credit claim program in Canada. To put it mildly it was a ‘winter of discontent ‘by all parties.
That means a couple of things of course, one of which is that it's ( more or less ) back to business as usual for the thousands of Canadian firms who utilize the SR&ED refundable tax credit program ; it also means that if you haven’t previously then you can also finance that claim . If only for one reason - immediate cash flow!
Sred financing , and yes , even the SRED program itself seemed to quietly slow down last year as the federal government took a hard look at the program . That same program was a critical part of the financing of thousands of firms in Canada who strive for innovation in their products and services.
And that’s everything, by the way, from start to up major established corporations. In fact only 20% of the users of the program were larger corporations , so we can only imagine the rumblings in ' SR&ED land ' for the 80% of firms who find themselves in either start up or early revenue mode, or perhaps they have just been in business a few years and are starting to ' ramp up ' in revenues.
While confusion seemed to reign supreme in ' SRED ' the reality is that the program took a hard hit in popularity as everyone with a vested interest made a hard stand on where they stood on the program . That included the government, of course, the SR&ED consultants that actually prepare you claim (most firms don't prepare their own claims “and industry economists and pundits who questioned the payback on the governments billions of dollars spent on these non repayable tax credits.
And for the firms who in fact finance their claims for cash flow and working capital via a SRED financing bridge loan for their claim in Canada that cash looked like it might be going away.
Nothing likes a happy ending, and there seems to be a general status quo on the program, although some changes were made to areas such as the ' CAPEX ' portion of the program.
All's well that ends well, we guess, so it’s back to ensuring that if you wish to finance your claim and accelerate working capital benefits that choice is all yours .
Claims are generally financed at 70% loan to value, and a properly structured SRED financing typically takes the form of a bridge loan collateralized by your claim. No payments are made for the duration of the loan, and your firm receives the balance of your claim, less financing costs once the good folks in Ottawa and your respective province approve and fund your claim per their guidelines.
Speak to a trusted, credible and experienced Canadian business financing advisor on a bridge loan for your SR&ED tax credit today.
P.S. Claims can also be financed today for your next years spend. Don't forget to look into that benefit also.
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Office = 905 829 2653
Email = sprokop@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 .
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
Bridge Financing is an interim financing option for homeowners who find themselves in this situation. It is a short-term financing tool aimed to bridge the gap between the two different closing dates.
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