A SRED Bridge Financing Loan Via Is Just The After Life Of Your Tax Credit Consultants Claim

Embracing SR&ED Claims Via SRED Bridge Loans In Canada

OVERVIEW – Information on financing the SRED Tax credit claim in Canada. This bridge loan , prepared via your consultants SR&ED work provides valuable cash flow and working capital for Canadian businesses wishing to maximize the benefits of the program




SRED Financing , we can make the case, is really the after life of your SR&ED consultants claim that's been prepared for your firm. We maintain that that financing of a SR&ED claim is really the last spike in the whole tax credit process... and its's a positive one if you're looking to recoup cash flow and working capital from your r&d developments.

The last few years have been somewhat tumultuous in the whole world of this type of tax credit. After a couple years of study some of the' rules of the road were changed' and the whole program, which delivered billions annually to Canadian business simply seemed at risk. But when the dust settled basic funding of your claim was intact.

The SRED process is a combined federal and provincial claim, and using Ontario as an example alone that province funds close to 1/4 Billion dollars in research tax credits annually .(By the way, another 400 Million dollars is funded for the film, TV and animation tax credits. These credits can also be financed. Given that sort of dollar commitment we're wondering if every business owner/CEO of mfg companies wish they were in the movie business!)

How do basic SRED issues affect the financing of your tax credit? It's safe to say, sticking to our basics, that you have to ensure you qualify, your application has to be correct, and you want expertise to maximize the amount of your claim given the somewhat changed new rules around the program.

While the program is administered by Canada Revenue it's your firm or your tax credit consultant/preparer that must prepare and submit the claim SR&ED claims are for all size of privately owned businesses in Canada (public companies don't participate in the non refundable process).

When it comes to financing your claim the role of the sred financing consultant is critical. Given the streamlined new process instituted by the government your goal is simple - clarify and maximize.

In Canada claims are financed in two manners -


1. A SR&ED bridge loan is created out of your already filed claim

2. A credit financing facility is created to fund your expenses that you intend to file and then fund via a SRED bridge loan

While some basic due diligence is always performed on your firm many firms that could otherwise not borrow elsewhere can easily get funding via their SRED Bridge loan. The fundamental reason is that the collateral for the loan is of course the SR&ED credit itself

Some other benefits of financing your tax credit claim? For a starter no payments are made during the whole time the bridge loan is in effect. Your financing costs are deducted at time of funding and realization of your approved claim. Additionally many firms that apply are early revenue, pre revenue, or no revenue as they are just starting to build their business. But the SRED credit can still easily be cash flowed.

So, should the after life of your SRED claim, i.e. the financing of it, appeal to your firm if it files and uses this popular program. It will if your firm wants to monetize your credit and continue to grow your business. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor with a track record of financing claims who can assist you with your SR&ED credit finance solution.



Stan Prokop - founder of 7 Park Avenue Financial

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - has completed in excess of 80 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 re: Canadian business financing & contact details :



7 Park Avenue Financial = Canadian SR&ED TAX CREDIT Financing Expertise




Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?


CONTACT:
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8


Phone = 905 829 2653




Email = sprokop@7parkavenuefinancial.com



































Stan Prokop

The SR ED Bridge Loan . Missing Out On A Key Benefit Of Your Tax Credit Claim ? It’s The Financing

Stop Dumbing Down On The SR&ED Bridge Loan Process And Benefits

OVERVIEW – Information on the SR&ED bridge loan in Canada. Tax credit financing of your SR ED claim provides valuable cash flow financing

for your research achievements








The SR&ED Bridge Loan allows Canadian business owners and financial managers to achieve... immediately... the one key benefit of their tax credit claim under the govt's ' SRED ' ( Scientific Research And Experimental Development) program . That benefit? The Cash! Let's dig in.


We suppose our favourite saying this week is ' Dumbing Down ‘...all sorts of connotations, but essentially its evidence of ' lacking intelligence' and ' good judgement’ we’re told. But armed with some basic yet key info around SRED Financing there is certainly no need in our opinion do ' dumb down’ when it comes to financing your tax credit.

Getting back to basics, we are quite sure there is still a large contingent of Canadian business that does not know that financing to claimants under the program is even available. It is, and the cash flow and working capital you secure via your collateralized claim allows you to continue your R&D under the program and replace valuable cash resources that have been spent on that whole process.

The key benefit of financing a SR&ED credit is simply beating the time factor. While the processing of your claim can take months, sometimes much longer (first time claimants are often audited) your ability to cash flow your claim is really what it's all about in SR&ED financing.

Historically the entire program has been around for close to 30 years now in various forms. In the 1990's popularity exploded, with Billions of dollars issued every year under the program. Top experts agree that it’s the largest ' support' program for private companies, partnerships, and even sole individuals who are working on new products, processes, etc to stay competitive and grow their business.

It's interesting to note that in the 2011 time frame the entire program came under massive review... was streamlined to a certain degree, and brought the role of the SRED consultant front and center. It's this group that typically business owners turn to prepare claims.

Govt stats show that over 75% of all tax credit claims under the program are in fact in the SME sector. That is where cash flow is king, so financing your claim emerges as a solid benefit.

And the process? Claims are typically financed in the 70% LTV range (loan to value)... meaning that a 200k claim , as an example provides a 140-150k range financing . Having your claim prepared and by a knowledgeable consultant is a solid key factor in financing approval.

The true beauty of tax credit financing under the program is that no payments are made for the duration of the financing... hence the term ' BRIDGE LOAN '. When the government processes your claim you are advances the remaining 30% of the tax credit, less financing costs.

99.9% of tax credits financed under the program are done by non bank entities... and rates are typically mezzanine in nature. It all comes back to the ability to achieve instant cash flow under the financing of the credit.

By the way .. Innovation has crept into SR&ED financing , and most claims can even be financed while the research and expenses are still in process. It’s a concept known as ' Accrual financing’ of our tax credit.

So if you're utilizing the program (your competitors probably are) there's no need to ' dumb down' when it comes to financing your claim. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor with a track record of tax credit finance success. Accelerating your claim is what it's all about.




Stan Prokop - founder of 7 Park Avenue Financial


http://www.7parkavenuefinancial.com


Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - has completed in excess of 80 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 re: Canadian business financing & contact details :


7 Park Avenue Financial = SR&ED Bridge Loan Financing Expertise In Canada


Have A Question Or Comment On Our Blog Or Canadian Business Financing Alternatives ?

CONTACT:

7 Park Avenue Financial

South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Phone = 905 829 2653

Email = sprokop@7parkavenuefinancial.com

Stan Prokop

A SR&ED Bridge Loan . Never Thought Financing Your SRED Tax Credit Claim In Canada Possible? Here’s How .

See How Easily Your SRED ( SR&ED) Claim Can Be Financed

Information on SRED 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.





Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 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 re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/sred_financing_bridge_loan_tax_credit_claim_canada.html

Discuss Among Yourselves - Financing SR ED ( SR&ED) Tax Credits Turns Your Claim Into Business Cash Flow Loan - SRED Claims Finance

Financing Your SR&ED Claim Is Still A Great Cash Strategy


Information on SRED ( SR&ED ) tax credit financing in Canada . A SR ED loan or the financing/discounting of your SRED Credits and claims monetizes your claim into valuable working capital .





So, the excitement continues to build, SR ED tax credits are a large part of the focus on what the government of Canada should be doing to help Canadian firms with their research and development. SR&ED claims total in the billions of dollars and have come to the attention of a lot of players in the private and government sectors. It's a pretty basic discussion, revolving around the question ' Is the SRED tax credit still working for government and business.

Let's highlight some of those issues, and key info on the program, but, most importantly, lets re enforce one key point - if you have a SR&ED claim you can still finance it , all the turmoil around the program notwithstanding ! And we'll show you how.

We hate weighing in on all those debates on the program, quite simply ours is to finance! But we guess it’s important that some of the key issues should be highlighted, and of course any major changes to the program will in fact probably affect how claims are financed.

So what the problem? Simply speaking it's that prudent people want to ensure that the tax system and the innovation around things such as tax credits work.

A lot of the discussion seems to revolve around what happens after Canadian business owners file their SRED claim. Simply speaking, the discussion is all about ' commercialization ' of the work and funds that go into those SR&ED credit claims. Currently the actual credits are primarily only available to private companies and there seems to be some discussion about moving the program into the public company sector. That seems to make sense because it would seem some early stage companies actually don’t go public via an IPO or RTO simply because of the fact they would lose their valuable SR ED claim status, and the non repayable cash flow that come from that program.

A number of current factors make the up calculation of the total combined provincial and federal tax credit SRED claim. Under the current guidelines companies can receive up to 1/2 to 3/4 of all they spend on key documentable Sred.

So it’s an interesting time for the SR ED tax credit. To the many hundreds of sred consultants out there who prepare claims we can only imagine where their heads are at these days.

But as we said, the one constant of SR&ED is that you can still continue to cash flow and monetize your claim via a SRED Loan. In fact the industry has gotten more creative and many financings are now done prior to the actual filing of the claim. This concept is called accrual financing and it simply means you recoup your expenses as you spend. Now that’s a true financing benefit for firm who can use the SR ED claim cash flow to survive and grow. (And we guess hopefully commercialize their products also!)

The financing couldn’t be simpler. be prepared to document your SR&ED work through your consultant or internal team. Claims are typically financed at 70% of total value, and no payments are made during the loan outstanding period.

Consider talking to a trusted, credible and experienced Canadian business financing advisor on monetizing your tax credit for critical cash flow.





AUTHOR - STAN PROKOP

7 PARK AVENUE FINANCIAL

CANADIAN BUSINESS FINANCING !

http://www.7parkavenuefinancial.com/sr_ed_sred_tax_credit_credits_Claim_claims_loan.html

How To Borrow Against Sred Claims- Use Your sr ed (SR&ED ) tax credits & Finance For Cash Flow Today!

In the world of finance more often than not today is better than tomorrow, and when it comes to borrowing against your sred claims your ability to monetize sr ed tax credits for working capital is the ultimate win win situation . Here is why!

The Canadian governments Scientific Research and Experimental Development (aka ‘sred’, 'sr&ed') program provides in the area of 4 Billion dollars per annum to Canadian businesses in the form of a non repayable tax credit cheque. The only reason you wouldn’t get your cheque is if you had corporate tax arrears, and that’s still a good thing we think, because at lease then the government offsets your tax arrears with your credit. (By the way, we don’t recommend tax arrears as a financing strategy!)

Your company is using the program for all the right reasons, i.e. improving products and services, staying competitive, etc. But many firms either haven’t heard of or lose sight of the fact that the sred tax credits can be even more 'accessible ' if you will, when you borrow or finance your claim.

Turning your sr&Ed tax credits into valuable cash flow and working capital moves you one step ahead of your competitors we have always maintained to clients. Why. It's simply the old finance adage that a dollar today is worth more than a dollar tomorrow, as it can be re invested in your operations for a variety of reasons.

A typical question we get from clients considering the financing of a sred claim is ' what are we allowed to use the funds for?’. And of coruse they love the answer, which is simply for any general company purpose you choose - typically that becomes reduction of working capital, clearing up or lowering payables, and just general day to day operations.

Financing your sred claims in essence ' invigorates your working capital.

So who finances these claims and how would be describe the process. Is it complicated; easy, how long does it take? Those are the typical client questions in consideration of sred finance.

We can make a broad pretty safe statement that banks in Canada don’t finance sr&Ed claims for your tax credits. If they do, it is in conjunction with other security and arrangements you have with your bank. Most firms we talk to either have approached their bank, been declined, or simply have not been aware that sr Ed credits can be financeable.

We recommend you speak to a trusted, experienced and credible Canadian business financing advisor who is knowledgably in the area of sred tax credit finance. That will shorten your process, maximize the amount you can receive under you claim, and in almost all cases simply reduce the time and effort you might normally expend to investigate sred financing.

The reality is that a sred finance expert can usually originate a full financing of your claim in a manner of a couple weeks, allowing for simple basics such as an application, review of your actual sred technical filing, etc.

So, can you borrow against sred claims? The answer is of course yes. Should you? That’s your decision, but if you need cash flow and working capital today from a non repayable government tax credit that you certainly know what to do now!

-

Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/sred_sr_ed_claim_claims_tax_credits_finance.html