Connecting The Dots Via A SR&ED R&D Refundable Tax Credit Finance Strategy
OVERVIEW : Financing SR&ED ‘ sr ed ‘ credits is the last piece of the r&d recapture process . A SRED Tax credit loan completes your cash flow strategy under Canada’s Scientific Research & Experimental Development refund program
Financing SR ED tax credits is the final ' connecting dot ‘in your firms’ journey in Canada’s SR&ED r&d refund program. We're examining the SRED Tax Credit Loan; it makes a strong case against waiting for your refund. Let's dig in.
One of the characteristics of the SRED program is that despite providing billions in funding for thousands of firms in Canada the amounts range from claims from 50k up to 1 Million $ +. For firms like yours that invest in R&D that investment can be a significant portion of your costs.
While R&D is to a certain point discretionary the reality is that todays competitive environment forces you maintain the maximum investment you can. SR&ED financing certainly assists you to plough back your maximum given that waiting for your refund is eliminated - cash flow is accelerated under the loan.
While the real objective of the program is to reimburse you for your R&D capital costs it seems logical that many firms wouldn’t take advantage of the program if they couldn’t recapture a large part of their cash flow investment. The main resource that many firms rely on are the ' SR&ED Consultants “that assist firms in preparing their claims and working with your accountants to properly file the claim.
That claim eligibility is a key part of the SRED tax credit loan process as a quality claim prepared by an experienced consultant helps speed up the financing process. That ' process' by the way is typically the most common question we get from clients on financing SR ED credits - i.e. how long does it take to get a SR&ED bridge loan and what’s involved.
The good news? Claims can be financed in a matter of weeks, in certain cases even less time. And the actual application? Just as easy - typical requirements are a copy of your SR&ED filing, your financial statement and tax return and some miscellaneous info typical for any business loan - i.e. your articles of incorporation info, etc.
‘Timing is everything ‘is an oft used cliché in business. The good news around financing SR&ED credits is that last years claim is financeable, as is this years, and yes, next years also can be started along! Your ability to document claims properly just moves everything along. SR&ED bridge loans are financed at 70% of the value of your claim - in simple arithmetic: every 1000.00$ of claim nets you 700.00$ in immediate financing.
Very few business people dispute the value of R&D and the tremendous benefits attached to the SR&ED program - it's equally a good thing to fund your claims and accelerate cash flow. Seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can help you ' connect the dots ' in your refundable tax credit cash strategy.
7 Park Avenue Financial :
http://www.7parkavenuefinancial.com
7 PARK AVENUE FINANCIAL = CANADIAN SR&ED TAX CREDIT FINANCING EXPERTISE
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Direct Line = 416 319 5769
Email = sprokop@7parkavenuefinancial.com
' Canadian Business Financing With The Intelligent Use Of Experience '
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
