YOUR COMPANY IS LOOKING FOR A CANADIAN SR&ED FINANCING
LET US HELP YOU FINANCE SR&ED CLAIMS TODAY! FUNDING YOUR R&D SCIENTIFIC RESEARCH
You've arrived at the right address! Welcome to 7 Park Avenue Financial
Financing & Cash flow are the biggest issues facing businesses today
ARE YOU UNAWARE OR DISSATISFIED WITH YOUR CURRENT BUSINESS FINANCING OPTIONS?
CALL NOW - DIRECT LINE - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs
EMAIL - sprokop@7parkavenuefinancial.com
FINANCE YOUR CANADIAN GOVERNMENT SR&ED CREDIT REFUND
What is the SR&ED Credit and Why Should Your Company Take Advantage of the Program?
SR&ED financing is simply the method by which you can, at your own firm's own option, monetize or ‘cash flow' your SR&ED tax credit and generate needed working capital and cash flow for ongoing operations or of course further investment in your R&D capital processes and development. All Canadian controlled private corporations in every industry are eligible under the program.
WHAT IS SR&ED?
The 'SRED' program is one of the best, yet somewhat underutilized ways of recovering research and development expenditures. When both the federal and provincial tax credits under the program are combined they can return up to 50% of your R&D spend via the Canada Revenue Agency administration of the sr&ed program.
ELIMINATE THE WAITING - CASH FLOW YOUR SR&ED REFUNDABLE TAX CREDIT
We have all seen the oil change commercial where the mechanic states ‘you can pay me now or pay me later'. Well, financing your SR ED Claim has a similar ring to it – of course, you have the option of waiting for the government at the federal and provincial levels to mail your firm your cheque – which could take anywhere from 1-12 months – Or you can arrange to finance that claim now and utilize those funds for any business purpose.
FINANCE YOUR SR&ED CLAIM BEFORE YOU FILE - YES YOU CAN!
Are we eligible to finance our SR ED tax credits? Clients often ask. We can only reply that if you have a claim, and have filed it, you are in fact eligible. In fact, under certain circumstances, it can be arranged to receive funds even prior to filing for the investment tax credit.
ELIGIBLE SR&ED EXPENDITURES
That's what we at 7 Park Avenue call a financial incentive! Spending items covered in your refund includes items such as salaries, work done by subcontractors on your project via guidelines around scientific of technological uncertainty, and items and materials purchased relevant to your specific project. Your claim is filed with your T1 tax return in conjunction with your accountant and SR&ED Consultant.
THE BENEFITS OF THE SR&ED PROGRAM
Clearly, the purely financial benefits of the SRED grant program in Canada are numerous – you receive significant amounts back from expenditures made on research, including wages and salaries associated with that research, as well as major portions of material and equipment expenses.
THE ROLE OF INDUSTRY SR&ED CONSULTANTS
Industry sred consultants with technical knowledge in your business and industry are invaluable in maximizing your claim and preparing the claim via write-up and filing. Bottom line - maximizing sr ed funding for a more effective cash management process around your r&d. The software development industry is a huge user of the sr&ed program to capitalize on the tax incentive provided by the program.
All of those above-noted expenses are ‘cash out' to your firm – the funds have been spent. So why not consider financing your claim and receiving those funds back in an extremely timely manner?
SR&ED FINANCING - WHAT YOU NEED TO KNOW!
We can almost hear some of your questions now as you review our information, as they are typical of what many clients ask:
- How exactly do I monetize the SRED claim?
- What exactly is an SRED loan – is there additional debt involved?
- How long does it take and what does it cost?
Let’s cover some of those very basic questions so you can feel comfortable about the SRED financing process. The SRED financing or the monetization or cash flowing of your SRED claim is simply a business financing that uses the actual SRED claim as collateral.
You receive approximately 75% of the full federal and provincial total as a short-term cash loan that is collateralized by the SRED itself. Of course, the additional 25% is still yours, it is simply held back as a buffer for any adjustments that are made to your claim.
SR&ED LOANS DO NOT HAVE MONTHLY PAYMENT OBLIGATIONS
No payments are made on your SRED loan, and the final cheque to your firm (you have already received 70%) is the holdback amount less the financing costs. So you have pure cash flow and additional working capital, no long-term debt associated with a loan per se, and no payments are made. That is truly creative business financing of which most Canadian business owners are not even aware.
FUNDING IN 2 WEEKS!
The typical process to create SR&ED financing is approximately 2-3 weeks, you should quite frankly view it as any other business application – the usual business info and backup on your firm, plus of course the details of the SRED financing.
From the government's perspective, the amount of time it takes to validate your claim on the sr ed refund or inquire about any specific details might be from 2-6 months depending on the size of your claim. Your actual SRED credit is the main collateral for the loan; Canadian firms are tired of waiting for their refund, so they explore the refundable tax credit financing option for sr ed tax incentives.
This short-term working capital loan is a key source of cash for many younger and growing companies, with many still in 'start-up' mode. They can't wait for long periods of time to conduct research and recover expenditures related to future sales prospects - SRED finance loans for Canadian companies allow the firm to grow faster as you focus on r&d around scientific or technological advancement / technical challenges in your company/industry.
CONCLUSION - SR&ED TAX CREDIT FINANCING / SR&ED LOANS
In summary, have your claim prepared by a qualified SRED consultant - recent submission rules and styles have changed.
If you have unlimited cash flow and working capital resources by all means wait for your cheque – if you want to cash flow or discount your claim speak to 7 Park Avenue Financial, a credible experienced and trusted business financing advisor in the area of SRED Financing.
FAQ: FREQUENTLY ASKED QUESTIONS PEOPLE ALSO ASK MORE INFORMATION
What is the sr&ed expenditure limit?
Canada's sr&ed program offers specified rates on qualified expenditures - with a non-refundable tax credit that is applied to a reduction in taxes payable.
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