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Business Financing: Maximizing Cash Flow Via Alternative Loans & Tax Credits
The Hidden Gems Of Canadian Business Financing
Business Financing Loans And Financing Tax Credits For Cash Flow
TWO GOVERNMENT SPONSORED BUSINESS FINANCE PROGRAMS YOU NEED TO KNOW ABOUT
Two of Canada’s government-sponsored business finance assistance programs are the farthest thing from handouts you can imagine. Canada's SR ED Tax Credit program for R&D is a solid tool for recovering your R&D capital via refundable tax credit financing.In many cases anywhere from 30-40% of your entire research budget can be recaptured via a refundable tax credit for a loan amount your require.
CAN THE REFUNDABLE SR ED TAX CREDIT CLAIM BE FINANCED?
Even better news is that this tax credit can be financed via a bridge loan while you wait for your refund to be approved and arrive. It’s no secret that many of the thousands of firms who received billions in refunds every year take advantage of SR&ED loan financing.
THE ' SBL ' GOVERNMENT LOAN PROGRAM
One other ' hidden gem ' for start-up and early growth companies requiring SME COMMERCIAL FINANCE solutions is the govt sponsored Guaranteed Small Business Loan. It's very accessible and is geared toward financing 3 asset categories - equipment, leasehold improvements, and finally real estate. While not often used to finance real estate thousands of firms do in fact finance their fixed asset and leasehold needs via this program. One of the main ' users' of the program is entrepreneurs wishing to start or purchase a franchise business.
The Govt small business loan is NOT a handout. It's not a grant. But what it is provides a flexible term loan with great interest rates and flexible terms and amortizations. It even can be repaid without penalty - which even other traditional financing methods don’t allow.
What are the approval criteria for SR&ED loans and the Government SBL loan that we've described? In the case of the SR ED tax program, you simply need to file your claim with your yearend financials. Claims are typically 'written up ' via SRED consultants who specialize in maximizing your claim under the program. Naturally, your R&D capital investment spend under the program must be well documented when it comes to actual expenditures and monies paid/spent.
As far as the Govt SBL loan is concerned very typical lending criteria apply. Business owners must have reasonable personal credit and be able to provide a business plan and cash flow that assumes some realistic repayment of your loan. Invoices or quotes from suppliers on leaseholds and equipment you intend to finance also helps. The interest rate on the program is very attractive and competitive and comparable to main street financing rates given the nature of the program.
ARE THERE OTHER SOURCES OF ALTERNATIVE FINANCING FOR CANADIAN BUSINESS?
Our two ' hidden gems’ , the SR&ED program and Canada Govt Guaranteed business loans can be complemented with numerous other finance solutions. Those include financing under:
ALTERNATIVE FINANCING SOLUTIONS
A/R financing
Inventory Loans
Equipment Leasing
Non bank asset based credit lines
P O financing
etc.!
Business Financing Loans Cash Flow Tax Credits: If you're focused on understanding all the finance solutions and business credit available to your company seek out and speak to a trusted, credible and experienced Canadian business financing advisor.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop 7 Park Avenue Financial/Copyright/2020
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