How Hard Is It To Finance Your SR&ED R&D Credit – You’d Be Surprised?
OVERVIEW – Information on SR&ED financing in Canada . SRED research tax credits under the govt SR ED program can be cash flowed at any time
SRED Research tax credits in Canada can be financed. The ability of your business to finance your SR ED claim seems to come as a surprise to many business owners who take advantage of this popular program. Let's dig in.
The concept of financing a Sr&Ed claim is really the final step in maximizing the benefits of Canada's most popular and generous refundable tax credit program for business. For those that are interested the actual name of the program is the Scientific Research and Experimental Development program.
Having gone through significant changes over the past years the R&D program is still very robust. Just how robust - well in fact thousands of firms apply and qualify every year and they claim cash credits well in excess of 3 Billion dollars annually. Naturally only firms they have an R&D aspect to their business qualify, and they must adhere to the spirit of the program. By the way claimants can claim every year, and there are many firms that file and qualify every year.
To maximize the benefit of the program - i.e. receiving your refund involves preparing a quality claim under program guidelines. This typically is done by 3rd parties known as SR&ED consultants. The benefits of using these folks is pretty simple - they have specific expertise in the program and over time they have gravitated to a contingency fee for their work - meaning of course they absorb the risk of time and preparation of your claim at no cost to your company . They then pre negotiate a fee with yourself which typically is due on receipt of your claim. In recent years these consultants were heavily scrutinized and they now actually are identified on your claim, as well as is their compensation.
While your SR ED claim can be financed during preparation, at time of filing, or post filing there is always the chance your claim could be scrutinized or audited. Typical scenarios include claim eligibility, documentation and back up; the government actually publicizes timelines for assessing your claim and issuing a refund.
In order to cash flow your SR ED credit immediately a simple application process is in place. Typical info on your business includes a copy of your claim, info on who prepared it, and your financial statements. Firms that are in early stage can still 100% qualify for SRED financing as the key collateral behind the loan is the refund itself. Many early stage firms apply and qualify for SR&ED loans.
Why benefit from a SR ED financing? It's all about cash flow, your company’s ability to turn your R&D expenses back into cash for any company purpose.
If you're interested in seeing how easy it is to finance your R&D credit seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you in turning your refund into an early cash flow bonus for your business.
Stan Prokop - 7 Park Avenue Financial :
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7 PARK AVENUE FINANCIAL = CANADIAN SR&ED FINANCING EXPERTISE
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