SR&ED Financing In Canada : Cash Flowing Your Sr&ed Claim

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How To Avoid Waiting For Your SR&ED Refund : Finance It With A Sr&ed Financing Bridge Loan

Information on sr&ed financing in Canada. Cash Flowing Your Sr&ed Claim expedite the return of your r&d capital investment

The only thing worse , we think than not knowing about Canada’s SR ED grant program is probably the fact that Canadian business owners and financial manager don’t know that their claims can be financed immediately to access cash flow and working capital now .

Yes, SR ED claims in Canada can be financed. Clients are always asking us how these claims are financed, what amount can they receive, and how can a SR ED claim be financed when it fact it could be challenged by a SR ED reviewer. Let’s cover off some of those issues.

First of all your Sr Ed claim is generally financeable a 70% loan to value. That technical jargon of course for simply meaning that if you can receive, as an interim cash flow and working capital loan approximately 70 cents on the dollar now for your claim. You of course are fully entitled to the other 30% - we are simply saying that portion is not financed – It essentially works as a buffer for any reduction in the claim by Ottawa. Those reductions in your claim might be a simply temporary clarification that is needed by CRA in Ottawa to approve that claim in its entirety.



Clients ask us if there is a sure fire way of allowing their claim to be approved in full. Probably the best answer we can provide is simply to say that by working with a good SR ED claim preparation consultant you are of course ensured more integrity in your claim. Your accounts can in fact submit a claim on your behalf, but we caution Canadian business owners and financial managers to ensure that they have a solid understanding of their accountant’s specialization in this very boutique area of accounting and business.



Quite often if a claim is temporarily clawed back and credible and experienced SR ED advisor can submit additional proper back up on your behalf to help ensure FULL approval of the claim!



All Sr Ed claims can be financed – however it is a bit easier to obtain full financing of your claim if you have successfully filed in the past. That’s just simple logic which indicates that your firm has a higher ability of being approved. However the bottom line is that a first time SR ED claim can be financed - if properly documented and prepared it is fully eligible for the 70% loan to value – in some cases the first time claim might be financed at a lower loan to value ratio . The bottom line, cash flow and working capital are still accessible for that claim!



The total advantage of financing your SR ED claim is very simple. You have the choice of waiting for your cheque from Ottawa. (That might also involve delays in the final adjudication of the technical aspects of your claim). Alternatively, you can access cash flow and working capital now for your Sr Ed claim.



The process for financing your claim is simple. We strongly recommend you work with a trusted, credible, and experienced financing advisor. The overall process simply involves a standard business financing application, proper documentation of your claim and its filing, and then standard legal doc’s surrounding collateralization of the claim being financed.



In summary, if you are filing SR ED claims take advantage of financing those claims. Cash and working capital are available now. Monetize your claim and use that cash flow to further increase your sales and reduce business liabilities. That is a solid financial strategy!





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

http://www.7parkavenuefinancial.com


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 .

' 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

Sr&ed Credits – How To Finance Your Claim for Immediate Cash Flow

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You Don't Need a Horoscope To Determine When your SR&ED Credit Will Arrive - Finance Your Claim and You'll
Have Your Refund In A Very Short Period Of Time

Information on financing SR&ED credits under Canada's research & development refundable tax credit program. Maximizing your r&d capital investment via quick efficient cash flow financing of your claim is a strategic priority for many companies

Canadian business owners and financial manager who file for sred credits are often not aware that these claims can be financed in order to generate working capital and cash flow out of the claim. They are even more surprised to hear that it is actually possible under most conditions to obtain financing even prior to financing the claim.

What could be a better working capital and cash flow strategy than getting immediate cash flow for a government grant that is non repayable? We frankly can think of no other risk free way to bring valuable cash funds into your company if you are utilizing this great government program.

Let’s establish some bedrock around what we are talking about. The program formal name of course is the Scientific Research and Experimental Development aka ‘(SR&ED) ‘program that is funded by the federal and provincial governments. Each SRED claim has a federal and provincial portion, and, combined, they provided you with a non- repayable tax credit for a significant amount of the funds you spend on qualifying R&D and business processes.



Many clients we work with have their claims prepared on a contingency basis – that simply is letting someone else , known as a sred consultant , prepare you claim and letting them absorb all ( yes all ) of the cost of that claim . When you finance a sred claim you can actually arrange to have the sred consultant paid at the same time also.



SRED claims continue to be on the rise in Canada, and when you couple the filing of those claims with a somewhat challenging financial environment for business financing you have a perfect storm, so to speak, for the consideration of financing your claim.



The financing of sred claims is the ultimate ‘boutique ‘financing business in Canada. We urge clients to work with a business financing advisor who can ensure they are receivable maximum funds and market rates, terms and structures for the amount of the claim.



Clients want to know how ‘complex ‘a sred financing is. The reality is that you should view a sred tax credit financing in exactly the same manner as any business financing, other than to understand perhaps that the main collateral on the sred loan is really the claim itself. We use the word ‘sred loan ‘but in reality the sred financing brings no debt to the balance sheet – you are simply monetizing your claim for cash flow and working capital now.



The essence of the entire process can be simply described under the following process



Sred financing application

Due diligence

Legal/documentation of loan

Funding!!



It’s as simple as that, and we advise most clients the entire process can be completed within a few weeks, which is standard for most business financings anyways.



You would only want to consider sred financing if in fact you don’t want to way from 1-12 months, (sometimes longer) for your grant cheque from the government. As a Canadian business that is growing you probably have much better uses of those funds now, including reducing payables, investing in even more r&d, acquiring new business assets, etc .



Consider sred tax credit financing as one more toolkit you have in your overall business strategy. Work with an expert and maximize the amount of your return and the overall most effective use of that essentially free cash flow and working capital.




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

http://www.7parkavenuefinancial.com


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 .

' 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

SR&ED Financing : The Doctor Will See You Now!

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SR&ED Financing ? Why ? Immediate Cash Flow For Your R&D Capital Recovery Refund Claim

Information on SR&ED financing in Canada. Understanding how your SR ED refund can be monetized and what the benefits are is key to maximizing your r&d capital invesment

SR&ED financing is an immediate financing strategy to convert your filed Canadian SR ED claim into working capital and cash flow for your business.

If your company needs additional cash flow the SR ED financing strategy is a great source of financing and working capital of an ' alternative' nature. Naturally Canadian business owners and financial managers can wait up to 18 months (sometimes longer?) for your non repayable SR ED refund, but if you need the capital you can access those funds now.

SR ED financing is absolutely a boutique, somewhat unknown type of financing in Canada. We recommend that you work with a trusted SR ED advisor who can both maximize your claim (usually 70% of the total value of your claim) and assist you in ensuring the claim can be financed in a relatively short period of time. In claims for our customers that process usually takes 2-3 weeks with your full co operation of course.

Almost everyone agrees that the SR ED grant, which, as noted, is non - repayable! is one of the best government assistance programs in Canada . In our firms opinion both the SR ED grant and the Canadian governments CSBF loan program are the two most clear and viable financing assistance strategies for Canadian businesses.

When we meet with customers to discuss their cash flow and working capital challenges customers always ask us what SR ED financing funds can be used for - the simple answer is any general corporate purpose. We also point out that your claim, in order to be financed, must demonstrate that you have no CRA (the old 'Revenue Canada ') arrears for any government super priorities such as source deductions, GST arrears, etc. We would point out thought that although your claim might not be able to be financed with those arrears in place that you still should file your claim for funding as the claim will reduce or eliminate your arrears, depending on how much is owing to CRA and the value of your filing.

In certain cases we work with customers to pay any of those government arrears out of the financing of the claim - that’s a good thing!

Business that finance SR ED claims clearly understand the value of the program - it gets your firm a significant refund in any research your firm does in products, processes, software, etc .

It is our understanding that over the last couple years the government has sent out cheques for 1.6 Billion dollars in funds for SR ED claims, so:

1. Why wouldn’t your firm consider filing a claim for your funding?

2. Why wouldn’t you consider a SR ED financing strategy for immediate funding of that claim?!

When we meet with customers and ask them what they will use the proceeds of the SR ED financing for they indicate that it will be for very basic working capital requirements - suppliers, payroll, further investment into their R&D processes, purchases of equipment, etc.

SR ED financing is typically in the 70% LTV range, by l t v we mean of course loan to value. That simply means that for every 100.00 of Sr Ed calim you can immediately access, on approval, 70.00 of your total claim. The balance is remitted to our firm once Ottawa and Ontario approve their respective parts of the claim. Naturally there are the financing costs which are typically taken out of that last 30% that is due your firm.

There is no real maximum on the amount of SR ED claim that you can finance, in our own experience claims are generally under one million dollars, but that is not a hard and fast rule.

We referenced working with a good Sr Ed financing advisor who can both maximize your cash out of the claim financing, and steer you through the process as well. In certain instances your bank might have a general security agreement on the claim, (even though they are not financing it?!) so a release is required from the bank, which is generally easy to obtain once we explain what we are trying to achieve.

Many firms ask us what the general criteria are for Sr Ed financing approval. It is essentially a standard business application process; however we clearly note that the emphasis is on the amount and quality of your claim, with significantly less reliance on your balance sheet and income statement. That is because the Sr Ed financing is secured by your actual Sr Ed filing - it’s as simple as that.

Naturally it helps if your overall business outlook is generally positive, or if you are on track to recovering from any setbacks such as a financial loss, or balance sheet issue, etc

Cash flow and working capital needs? Filing SR ED’s? Then consider your Sr Ed financing options!


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

http://www.7parkavenuefinancial.com


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 .



' 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

Sr&ed Tax Credit Financing : Your Cash Flow & Sred Loan How To Primer

What If … Your Firm Could Get Funding Today for Your Future SR&ED Tax Credit Financing ?

OVERVIEW – Information on sr&ed tax credit financing in Canada. A Sred loan unlocks the cash flow in your refundable tax credit claim

Sr&ed tax credit financing allows owners/financial mgrs to fully explore the cash flow potential of Canada's Sr ed program. Let's dig in .

Whether your business is a first time, or multiyear claimant everyone is in the same boat - waiting for the refund cheque. Occasional audits of either your technical claim or the financial aspect of the claim can further prolong your receipt of funds.


In talking to many clients we can safely say that most firms who have a commitment to R&D capital probably could put those funds to alternative uses.

Clients we meet use sr&ed refunds for working capital, buying new equipment, reducing payables, and of course also furthering their R&D enhancements. In essence you're enhancing and continuing to expand your business.

Therefore as powerful a tool as a sred claim is the reality is that it itself can create short term cash flow problems. Those challenges are on top of the ones Canadian business owners and financial managers face every day, slow receivables, demanding payables , opportunities to purchase more inventory , or in some cases invest in equipment and long term fixed assets .

How then does monetizing your SR&ED claim address your overall working capital and cash flow position. Simply that you can monetize your claim as soon as you file it, or even while you're preparing the claim .That's called a SR&ED accrual or Sr ed credit line facility .

SRED, aka SR&ED tax credits are financeable! So you ability to finance your claim simply allows you to receive approximately 70% of your claim today in the form of a SRED bridge loan. And remember, that's not additional debt on your balance sheet, since the sred loan is in fact offset or collateralized by the full value of your actual sred refund.

Talk about kick starting cash flow - you're receiving cash for non repayable refundable tax credits under the program.

So how difficult to finance your sred claim? It involves a very typical business financing application, as well as full backup for your sred claim, including who prepared it, details of any previous year's submissions and approvals, etc.

Even if your firm is experiencing financial challenges you are still very much in the position of being able to discount, or in effect factor your sred claim, because that is the asset that supports the financing . Many firms that look to SRED Loans for cash flow are also start ups in many cases, or at a minimum early stage firms - in all industries.

A Sred cash flow loan can be completed in a week or two assuming your full ability to provide back up on the claim, info on your firm, etc. It's a very basic process.

Speak to a trusted, credible and experienced sred finance expert who will no doubt help them accelerate the sred financing.


Stan Prokop - founder of 7 Park Avenue Financial –

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 13 years - Completed in excess of 100 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 & Contact Details :
http://www.7parkavenuefinancial.com

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 '

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

SR ED Financing Via Sred Loans : A SR&ED Tax Credit Loan Monetization Strategy That Works

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Is Your Company Taking Advantage Of SR&ED Loan Financing? Consider This ..

OVERVIEW – Information on SRED loans in Canada. SR ED financing via a tax credit loan is the logical way to monetize your r&d capital credits for cash flow purposes

SR ED financing is the most efficient way to accelerate and monetize your investment in R&D capital. A SR&ED tax credit loan allows you to take maximum advantage of this most famous and used govt refundable tax credit. Why do SRED loans make sense for your firm then? Let's dig in.

Of course the actual ' formal ' name for the program is the Scientific Research & Experimental Development refundable tax credit .By the way , we've never been one for name calling , so whether you call it ' sred ' ' shred' or anything else for that matter only the importance of the program is key to us!

Canadian business owners and financial managers in a variety of industries have the ability to of course file sred claims, and at the same time, if they choose, they can finance their claim and generate immediate cash flow and working capital from this valuable government grant program. Again, to be clear, those funds are non repayable.

Safe to say that the only thing that prevents you from financing a claim is if you do not file a claim, so understanding the basics around a claim, as well as the characteristics that claim needs to be financed is valuable information for Canadian business owners and financial managers. The govt refunds billions of dollars every year under this program , and many owners/mgr choose to finance their claims.

Claims are filed and substantiated under the normal program guidelines. One of the misconceptions around the program is that your R&D has to be successful in nature, and that's actually NOT correct, you just have to be in a position to document what you did and how you did or tried it.

Although claims prepared by owners and management can be considered for financing, the reality is that if you are applying for sr&ed financing it makes a lot more sense to have your claim prepared by one of two parties, either your accountant , or what is known as a ' Sred Consultant '.

Claims have never been easier to file, as the govt has very much streamlined the program - but total care is needed to adhere to current filing guidelines - that's where those SRED consultants come in.

With the information we are sharing here we want to be able to ensure you understand how the quality and size of your claim affect its overall financeability. SRED claims are applied for in all sorts of amounts, we have seen clients file as low as 20,000 - 30,000$ per annum, and as high as 1.5 million dollars, and we are sure there have been higher claims.

The actual claim preparation has an effect on your claims financeability - as your goal, should you need the cash flow and working capital, is to monetize that claim into a short term sred loan - with the sred itself being the collateral for the loan.

When you choose to finance a claim the general advance is made at 70% - so let's do some rough arithmetic around a sample claim and it's financing.

We're told that in business timing is everything - As a business owner you can wait anywhere from 1-12 months to get your cheque in from the government, which is reimbursed at the federal and provincial levels. Or, if you choose to utilize those funds now under a sred loan, you can get an immediate loan of 70% of that claim.

What do clients do with their SRED Loan proceeds? Funds are typically used for working capital purposes, equipment purchases, or even more ongoing sred activity! Looking for more good news? No payments are made on your sred loan; financing costs are calculated at the back end of the claim when you receive your funds, including the previously mentioned 30% that was held back on the financing.

Furthermore, if you have successfully financed sred claims in the past you could be very eligible for sred accrual financing - which is a special program that reimburses you for your sred expenses as you go along during the year.

Traditional financing institutions such as banks and business credit unions are poorly equipped to understand and finance sred tax credits .As a result we recommend you work with a trusted and credible business financing advisor to ensure your claim can be financed quickly and with a modest amount of preparation.

A bottom line on SRED Loans? If you in fact utilize the SR&ED program consider cash flowing your claim to accelerate the monetization of your claim. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in financing your R&D capital refund.


Stan Prokop - founder of 7 Park Avenue Financial –

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 13 years - Completed in excess of 100 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 & Contact Details :


http://www.7parkavenuefinancial.com

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 '

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

SRED Tax Credit Financing : Making The Case For SR ED Loans & Recovery Of Your R&D Capital Investment

SR&ED Tax Credit Financing - 2 Things You Must Know

OVERVIEW – Information on Sred tax credit financing in Canada. Utilizing SR ED bridge loans is a cash flow effective way of speeding up recovery of your r&d capital investment

SRED Tax credit financing, even just the concept of SR ED loans to monetize your R&D capital investment can be a confusing scenario for Canadian businesses who take advantage of the most popular of Govt refund credits. So we're officially forgiving those who don't know the basics - and we'll fix that with some solid tips and info. Let's dig in.

Looking for a breath of fresh air in the SR&ED world? When it comes to financing and monetizing your claim 2 simple facts remain and we'll simplify that as follows:

1. If you have a sred claim it’s financeable for cash and working capital now

2.To finance a claim you need to have filed a claim, but not always!!


Your ability to monetize or cash flow a claim is in fact a superior way of generating additional working capital and cash flow now based on the value of your filing. We will add one technical point here, in that claims are generally financed at 70% LTV. LTV means ' loan to value ‘, so we are simply saying that for every one hundred thousand dollars of sred claim filing you can generate seventy thousand dollars via a short term sred bridge loan .

We can expand on that point a bit to ensure you are well informed. After filing a claim it is clear you are in a ‘waiting mode ' for your claim to be analyzed, potentially audited, and then of course waiting for the proverbial government cheque - shall we say ' it's in the mail ‘!

With Ottawa backing your non repayable cheque you of course have the assurance funds will come, but you just don't know when!

We recommend that if you have filed a claim that you investigate the ability to finance that claim now.

Why wouldn't you consider a financing option to accelerate cash flow and start using those funds now?

Uses of funds under SR&ED financing are totally within your control. We see clients utilize SR&ED loans to further invest in even more R&D, i.e. next years claim! or you can choose to reduce payables, invest in additional equipment or business assets, etc.

In a small handful of cases we meet with firms who have a tax liability to Ottawa or the province re source deductions, HST, etc. If you work with a trusted, credible, and experienced Sr&Ed finance advisor you can structure your financing to ensure that you're past due remittances are taken care of during the sred financing process. No firm wants to be in the governments bad books re past due government super priority issues.

The actual SR&ED financing process should be treated by yourself as any other business financing - we try and actually make the case its easier in some cases, because the actual asset behind the sred loan is the sred claim itself, so even if you think your firm might not qualify for financing for other forms of traditional borrowing your probably qualify for the sred - why?? Because you have a sred claim as an asset that's verifiable!


Given that billions of dollars are refunded under the SR&ED refundable tax credit you want to ensure you're getting your share - no argument about that. SR&ED loans simply speed up that process. Yes you can wait for funds, which may take a couple months or the better part of a year - if you can’t wait consider financing your Sr&Ed claim via a short term sred loan which is collateralized against your filing.

We strongly recommend you have a professional filing prepared, by your accountant or sred consultant (there are many) - this will significantly positively impact your ability to finance your claim.

Looking for a great cash flow and working capital strategy around that R&D capital investment - Monetize your tax credit. No new debt is on your balance sheet, as it is offset by your sred asset that is in fact a monetizable account receivable. Seek out and speak to a trusted credible and experienced Canadian business financing advisor who can assist you with your claim financing.



Stan Prokop - founder of 7 Park Avenue Financial –
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 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 & Contact Details :
http://www.7parkavenuefinancial.com


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 '

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