SRED Finance Ends The Curse Of The Refundable Tax Credit : Waiting For Your Refund Via Financing SR ED Claims

Eliminate The Downside Of SR&ED – Finance Your Refundable Tax Credit

OVERVIEW – Information on SRED finance in Canada . Financing SR&ED Tax credit claims eliminates the waiting with respect to filing SR ED refundable credits under the gov’t r&d capital refund program

Financing SR ED tax credit claims in Canada is an effective way to remove the ' curse ' of Canada's most popular program in r&d capital recovery .

Curse? Simply speaking we're referring to the amount of time Canadian firms have to wait for their refund . SRED finance maximizes the true benefit of the program - the cash flow you recover on your research investment . We're examining the 'upside' of SR&ED - cash! Let's dig in

Preparing your claim is no time for ' on the job training '. That's why pretty well everyone filing claims these days uses ' SR ED consultants' who specifically work only this area -maximizing your recovery. They are the ones that filter down all those CRA rules and calculations around the amount you can recover as well as ' writing up ' the claim in the manner prescribed by the program rules.

The amount of funding you get back in via the refundable tax credit often plays a key role in the development of many companies - from start up to those that are already in full revenue and growth mode. In fact the program is the largest program providing direct funding support - doling out billion every year to your competitors... and hopefully your firm!

The SR&ED program should not be confused with a grant or loan - it's neither, but simply a refund of a major portion of the work performed in an r&d environment for products and processes your company is working on.

Some additional ' good news' on your refund is that when you finance a claim you can include the current years refund of course, but , if applicable last years refund if it hasn’t been received of filed, as well as... the work your firm already has started on next years claim!

The amount of refund that companies receive tends to be in the 30-35% range of the total amount you spend in the program work. The other key amount to reflect on is that SRED Finance allows you receive a loan for 70% of the total amount of your combined fed/prov claim. Financing SR ED Tax credit claims comes with one other benefit - the receipt and use of the cash for your refund and no monthly payments until the govt processes your final refund, which of course can be months away - sometimes significantly longer.

If you want to eliminate ' downside' in the SR&ED program, specifically waiting for your funds! seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
with experience in SR ED finance.



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

Direct Line = 416 319 5769

Office = 905 829 2653



Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing With The Intelligent Use Of Experience '

Direct Line = 416 319 5769

Office = 905 829 2653



Email = sprokop@7parkavenuefinancial.com



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

Financing sr ed tax credit claims – Why a SRED Bridge Loan Make Sense

Purchased your lottery ticket yet? It's a 3 Billion dollar prize. That’s the feeling our clients have when they have secured their ticket (which is their sr Ed tax credit claim) to the three billion dollars the Canadian government provides each year for the Canadian SR&ED program. And the reality is with a properly submitted claim your odds of winning are much better than those lotteries - they approximate a 100% chance! We haven’t had those odds in our favor in awhile!

Let’s talk about why a sr&Ed bridge loan might make sense for the monetizing of the R&D non repayable grants that the government provides to Canadian firms who submit a claim for the program. Financing a sr ed tax credit claim allows you to cash flow, or monetize , however you want to call it your portion of the largest tax incentive program in Canada .

We have always told clients that the sr&Ed bridge loan makes sense, in our opinion, because it in essence fills the gap between your ability to get approved for the funds and receive those funds.

You have already made your commitment to R&D via your ability to innovate - so why no supercharge that innovation and turn those funds into cash. Financing sr Ed tax credit claim strategies provide your firm with the capital you need to further innovate and of course run your business.

We know by experience with our clients that many of the firms who participate in Canada's Sred program are whats known as pre revenue firms to finance professionals - in other terminology you're a start up, or very close to it. Accessing capital is hard when you are a start up - your firm simply doesn’t have the sales, profits, and the corresponding balance sheet and income statements to support the borrowing of capital.

If you're an established business and you have accounts receivable they can be financed of course. Well, guess what, you do have an account receivable that can be financed, it’s simply that it is known by another name - it’s your sr&Ed claim! A SR&ED bridge loan becomes an external source of capital that you otherwise might not be access based on traditional borrowing requirements.

A great strategy is simply to take advantage of financing sr ed tax credit claim and invest those funds in marketing the viability of your innovation that you achieved via the sr ed process . That is when a sr&Ed bridge loan makes total sense.

Capital is critical to any firm, whether you are the start up we just talked about, or an established firm simply desiring to grow your competitive edge and finance your business on an ongoing basis. Banks, venture capitalists, and private equity investors, etc don’t really finance sred claims.

In order to facilitate the financing of your calim seek an independent finance firm that specializes in this area. A trusted , credible and experience Canadian business financing advisor can have a sr&ed bridge loan completed in a couple of weeks with your firms full co operation . A simple application, a copy of your sred filing, and the normal due diligence associated with any business financing can be completed very quickly and efficiently.

Does it make sense to finance your sr&Ed claim - we think we’ve shown it has. The sred financing closes the gap between your innovation and the continued commercialization of your products and services, providing you with capital to maintain your competitive edge.
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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.parkavenuefinancial.com/financing_sr_ed_tax_credit_claims_sred_bridge_loan.html