ARE YOU TAKING ADVANTAGE OF SR&ED PROGRAMS AND THE ABILITY TO FUND YOUR CLAIM? WHAT IS SRED?
SR&ED Financing easy? Some clients we meet actually have a tough time buying into the fact that SR ED claims finance is not complicated. The bottom line? We think we can show you 'innovation finance’, i.e. SRED FINANCING is not the challenge you might think it is. Let's dig in.
Any business in Canada that files a SR&ED claim under the sr ed program does so, for the most part, to take advantage of the incentive that the Canadian government provides for a refund of a significant portion of your research expenses. And in Canada, every year, that covers thousands of businesses for Billions of dollars.
CRA ADMINISTERS THE CLAIM
Your claim's actual financing is more dependant on your firm, what you do, and who you work with instead of the good folks who administer and approve requests at Canada Revenue Agency.
CHANGES IN SR&ED
So while we can talk ( argue ? ) all day about the merits of the program, its recent changes in the last year or two, simply speaking, the onus is on Canadian businesses who choose to participate in the program to maximize and recover their ' spend ' on salaries, applicable overheads, etc. In years, machinery and equipment were under that umbrella, but recent legislation changed the SR ED credits' equipment component.
The program's heart is the fundamental premise that claims prepared properly under new claim submission rules can recover funds via applications submitted by Canadian private companies and even proprietorships. (Most companies that file and finance SR&ED claims, though, are clearly private incorporated entities.
MANY COMPANIES IN CANADA SPENDING ON R&D CAPITAL INVESTMENTS ARE NOT FAMILIAR WITH THE PROGRAM
Most people don't realize that the program has been ongoing since way back into the mid '80. Clients we meet who are now taking advantage of the program and heard about it late... well, sorry about that.
THE ROLE OF YOUR SR&ED CONSULTANT
While the SRED program has changed and been tweaked over the years, we point out to clients that SR ED claims finance has, in fact, not changed. Yes, of course, a bit more scrutiny is in place around who prepares your claim (‘ SR&ED CONSULTANTS ' are the folks that prepare and attempt to maximize your claim ) sred financing has, in fact, gotten more competitive and creative.
YOUR CREDIT IS NOT A GRANT - ITS A REFUNDABLE AND FINANCEABLE RECEIVABLE!
The actual tax credit itself is a refundable claim, not a ' grant. 'So as such, your claim in effect becomes a legitimate ' account receivable ' of your business, with the client around that receivable being fairly creditworthy - i.e. the Canadian government and its tax credit program. Your claim is filed with your year-end business return, but by the way, clients can fund their request before filing!
HOW DOES A SR&ED BRIDGE LOAN WORK?
How then are claims financed, and what are some recent innovations in financing SR&ED. Typically your requests are financed at 70% loan to value, and the actual financing is structured as a bridge loan with no payments. When your claim is " finally ' approved by the government, you receive the final 30% of those funds, less financing costs. The benefit is clear - you have ' cash flowed' your R&D capital investment.
CONCLUSION
And oh yes, those recent changes in innovating finance around SR&ED? Many claims that have a good track record in the past can now receive financing before filing your claim for the tax credits.
If you are looking to ' fast track ' and cash flow your investment in R&D, seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with red refund claims and a finance strategy and funding that make sense.
7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Click Here For 7 PARK AVENUE FINANCIAL website !
7 Park Avenue Financial provides value-added financing consultation for small and medium-sized businesses in the areas of cash flow, working capital, and debt financing.
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.
Stan has had a successful career with some of the world’s largest and most successful corporations. He is an experienced
business financing consultant
.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 financing 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.
Click here for the business finance track record of 7 Park Avenue Financial
