A Working Capital Breakthrough – Financing Your SR ED tax credit claims ( SR&ED ) makes Sense!

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How and Why to Finance research and development tax credits

Information on financing sr&ed tax credit claims in Canada, Financing your investment in r&d capital is a solid working capital and cash flow solution

There is generally a limited number of ways to finance your company and generate working capital. Yet one of these ways is somewhat unknown to many Canadian firms who do any type of research and development under the SR ED tax credit program. And it is a pretty simple decision - finance your tax credit as soon as you have filed it!



Cash is flowing out of Canada's sr&Ed program - why not let it flow towards your company. Without a doubt this is the largest incentive for Canadian firms to fund research, because under the program you of course recover a significant portion of all you have spent, at the same time enhancing your firm’s competitiveness in its products and services.



So hopefully we have articulated to a certain degree the benefits of filing a sred claim... so how do we finance it. The answer is simply to contact a sred tax credit Canadian business financing advisor. The elements of a successful sred financing are quite simple: have your claim prepared by a sred consultant that has proper experience in your area or industry. As soon as the claim is prepared it is filed by your firm and your accountants, and you apply for a refund at the same time you file your financial statements.






Discussions with clients around sr ed , aka sr&ed research development tax credits focuses typically around two area, the actual benefits they attain from their r&d, and, as importantly the financial impact the sred cash has on their balance sheets and working capital .



So who is the sr&Ed candidate from a viewpoint of both maximizing the program, while at the same time benefiting from financing the claim? In a world, everyone, as long as you are filing. However if we had to profile the typical firm that both files and finances their sr&ed calim via a sred loan it would be a company that typically is in the technology industry and is in its early cycle of development, revenue, etc . But, that having been said many mature manufacturing or ' old economy ' type firms have been filing successfully for many years and reaping those same benefits.



So how does SRED translate into working capital in an innovative manner? It’s in the financing, or we can call it the ' monetizing ' of your claim. Think of it frankly as financing or monetizing any one of your receivables, in the same manner that you do with your bank or an independent finance firm. You are in effect ' discounting ' that receivable today to receive the benefits of cash flow and working capital now. Of your you can go to the mail box every day for the next 3-12 months and see if your sred cheque was ' in the mail ' , but why not one up your competition and finance your claim for that working capital breakthrough we are talking about it .



Think of the positive dynamics around that - you have accelerated R&D competitiveness, you have been reimbursed for those expenses under the sred program, and now you're taking that money that is non repayable - yes non repayable! And financing that claim to fund the on going growth and profits of your company.



Financing of the claim involves a very standard business application, with the focus of the sred as your collateral. You're not taking on extra debt remember, you are just monetizing your claim for cash flow.



The sred loan is a bridge type loan , and is liquidated against the final cheque from the government re your refund. In the meantime you have working capital to reduce payables, fund ongoing R&D again, or simply for any general corporate purpose. The whole process can usually be accomplished in a couple weeks. We're guessing it’s taken you that long sometimes to finance your new photocopier!



Speak to a trusted, credible and experienced business financing advisor on the benefits of cash flowing your sr&Ed claim for working capital now.

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

Click here for 7 PARK AVENUE FINANCIAL

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

How To Finance Your Business With a SR&ED SRED Tax Credit Secured Loan

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Cash Flow your r&d Tax Credit Today !

Information on accessing a sr&ed tax credit loan . Sred loans accelerate the cash flow tied up in your r&d capital investment

Can you actually finance your Canadian business via the monetizing of a sred tax credit secured loan ? Absolutely, positively... maybe. We say maybe because if you don’t have a SR&ED tax credit then it is of course not possible. However, if you participate in Canada's primary R&D tax credit program then you're potentially on your way to increased cash flow and working capital.

Recent articles in the Canadian business press have criticized the need for the government to even further increase these tax credits. Typically most Canadian business owners and financial managers think that the sred tax credit applies only to manufacturing, which is the farthest thing from the truth. A recent article in the Globe and Mail , one of Canada's premier business publications, stated clearly that firms in the resource, services and technology sector also participate vigorously in the program .

If your firm in fact innovates and spends money on R&D the last thing you can be criticized for is under investing in your future. Therefore monetizing your tax credit after it is filed (it can also be cash flowed prior to filing! in certain circumstances) makes great financial sense.

Is monetizing your tax flow credit risky in any sense of the word? Our clients hardly think so, as you are simply ' cash flowing ‘, or ' discounting' your claim today , and you are not even adding debt to your balance sheet . Think of the sred credit as a current asset, in fact it’s a receivable, and you are simply collateralizing a bridge loan against your sr&Ed claim.

SR&ED tax credits are more often than not prepared by an external consultant, although some firms choose to prepare the claim itself - we suspect it's because they think that they have a better handle on the nature of the claim. The reality is however that you gain an additional ' brownie point ' - if we can call it that by having the claim prepared by a professional sred consultant. Many firms in Canada aren’t aware that these consultants will even prepare your claim on a contingency basis - so if they are prepared to take the risk of time and expense on your claim you can quite rightly assume they feel it will be approved , as professional rarely choose to work for free!.

While the Globe and Mail survey indicated that 70% of Canadian business thought the tax credits currently in place were not as generous as they thought they should be , lets be honest and cant we agree that receiving 40-50% back of every dollar you spend on r&d isn’t that bad a start! And you if can turn your spent funds into instant cash flow by monetizing your claim doesn’t that give you a leg up on your competition . We certainly think so.

Cash for research tax credits is not a complicated process. A short overview is as follows - have your claim prepared in a manner that suits the government’s current filing process. File your calim with your tax return. Seek out a trusted, credible and experience business financing advisor who will work with you to complete a SRED financing application - it is not dissimilar to any other business financing application you have ever filled out. Include your sred claim as additional back up, as it is in effect the collateral for your sred loan. Claims can be financed in two to three weeks after some basic due diligence.

Financing sred puts you in line with other firms to get your share of the 3 Billion (yes that’s billion!) dollars of non repayable cash grants. Turning your claim into a cash infusion makes great sense if you are a small to medium sized firm with need for additional working capital.

Monetizing your claim will drive cash flow which will no doubt inspire your firm to further innovation.

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

Click here for 7 PARK AVENUE FINANCIAL

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

SRED Financing In Canada : Taking Advantage Of Tax Credit Finance Via SR ED Bridge Loans

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Canada’s SR&ED Program : Get it While You Still Can! By the Way Did We Mention SR&ED Credits are Financeable for Cash Flow Now?

OVERVIEW – Information on SR&ED loans in Canada. SRED Financing offers cash flow bridge loans on your firms r&d capital investment. Tax credit finance is a solid cash flow solution to recovering valuable working capital outlays

SR&ED credits help replenish the investment thousands of Canadian firms make with R&D capital. The refundable tax credit in this sometimes misunderstood program is also financeable, accelerating and replenishing cash flow.

But the program (The Scientific Research & Experimental Development Program) is under attack. Looking for proof? The Aug 9/206 Globe &Mail story is a good example. The article (‘Gargantuan Tax Credit Doesn't Pass The Test For Evidence Based Policy) offered up 3 essential reasons the program does not work.

1. Canada's R&D capital investment is weak and declining
2. No evidence that the majority of firms are benefitting from spillover imagined benefits
3. The program is driven by bureaucracy not growth and innovation imagined benefits

The bottom line?

We'll let the pros debate the program and may the best man or woman win. We'll continue to originate and offer financing under the program

SRED financing in Canada is somewhat of an under used working capital and cash flow financing solution in Canada. Let’s explore the key basics of what SR&ED is and how Canadian firms can maximize the benefit of the program. SR&ED Bridge Loans turn that government non repayable tax credit into cash flow sooner than you had anticipated.

Most Canadian small and medium large businesses finance their day to day working capital via bank credit lines or non bank alternative financing facilities, such as asset based lending, factoring and receivable discounting. If your firm has such facilities in place, for example with a Canadian chartered bank then you are receiving probably 75% of your receivables and perhaps 50% of your inventory as eligible financing.

Did you know that your SR ED can also be in this working capital category? Let’s cover off how that is, and how it can work to your cash flow advantage! Unfortunately it's probably uniform across the board that SR ED credits aren't financed by Canadian banks. So alternative financing solutions have taken up the slack.

The basic strategy around SR & ED financing is the securing of a separate financing facility outside of your current financing arrangement. Therefore you are in essence creating a separate short term financing facility around the SR & ED claim that you have just filed.

In normal circumstances companies that file SR ED claims particularly on a first time basis can wait well close to a year to receive their funds from the federal and provincial governments. Remember the great benefit of these funds, which is they are not repayable . How long will the government commit to this solid, proven program? We're not sure but over 3.5 Billion dollars is shelled out annually to firms just like yours.

So what have we found discovered so far? SR &ED claims a great way to recoup a large per cent age of all the funds you have invested in research and development and experimentation during the past year. In fact you can claim up to 2 years of work.

The Canadian SR ED program is Canadian government’s way of assisting firms who are moving forward with innovative products and services. To be eligible to file a claim your firm must be a private Canadian owned company , have prepared and filed a proper SR ED claim in conjunction with your annual tax filing . We would point out that if your company has arrears with Canada Revenue Agency these arrears will be set off against monies due to yourself under the claim.

Also, if cash flow and working capital are at the top of your importance list your claim can be financed with the assistance of an experienced and credible SR &ED financier. This is truly a boutique industry in Canada and business owners and financial managers are urged to seek out trusted and credible advisors in this niche financing area.

Under the concept of SR ED financing your SR ED is security for a working capital loan – funds are advanced to approximate 70% of your filed claim. If properly structured you would not make any payments under this cash flow infusion, and would repay the principal amount of the SR ED financing when your claim is authorized and approved. In effect you’re are factoring or discounting the SR ED claim.

In summary, Canadian firms eligible to file a SR ED should do so. Get it while it lasts! What firm would not want to receive a cash non repayable grant from our friends in Ottawa! If you can wait for the money, great, if you wish to arrange interim financing for your claim enlists the services of a trusted and credible SR ED financier. In a matter of a couple of weeks (why wait a year?) your working capital and cash flow will be augmented via your SR ED financing bridge loan. That’s a good thing, and a great Canadian alternative financing strategy.

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your cash flow and working capital needs.

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

R & D SRED Financing In Canada : How To Finance Via A SR ED Loan

Is R&D Cash Your Obstacle To Innovation ? It Was.. Until Now ! Here’s Why .. and How

OVERVIEW – Information in sr&ed loans in Canada. R and D financing via a sred loan delivers on returning your capital quickly and maximizes your cash flow investment in the SR ED program . Here’s why and how

R & D Capital needs ? Not everyone Canadian business owner or financial manager takes advantage of the Canadian Governments SR & ED (Scientific Research & Experimental Development) tax credit program. It’s clearly in our opinion of the best and truly legitimate and valuable programs that a government provides for its business entrepreneurs in Canada . So don’t let lack of funds be your ‘ obstacle to innovation ‘ . Let’s dig in .


Many, when they hear of the program for the first, are amazed that they can receive significant funds, that are non – repayable (yes that’s non –repayable!) for their ongoing investment in research, product development, business processes, etc.
And, those that do take advantage of the program dutifully wait many months, in some cases a year or so or more for their cheques from the provincial and federal government.


Why not borrow against these funds and utilize those funds for much needed working capital and cash flow to further fuel the growth of your firm.


SR & ED financing is still relatively unknown in Canada – it is clearly a very specialized type of financing, somewhat ‘boutique’ let us say, in nature.
The government, via the program, wants to provide funds to Canadian business so they can continue to further their research and development and provide Canadian firms with a lead in technology and business.


So lets get back to the financing of the SR ED , aka ‘ SHRED ‘ , aka 'SR &ED'. SR ED Loans are typically for approximately 70% of your combined federal and provincial claim. The claim can be financed as soon as you have formally filed the claim with the government, which is at the same time you do your year end tax filing.


SR ED applications can be filed for the last two years, so on occasion your firm might in fact have a significant receivable generated by virtue of that filing you have done. Our observation is that some companies actually book that receivable in their financial statements for the full amount of the claim. Some companies take the conservative approach and only record the cash coming in when it is received from the government.


So, you as a business owner or financial manager of a Canadian company are asking yourself the obviously – if I book the SR ED as an account receivable, will my bank provide financing for it. Our experience is generally ‘no ‘they will not. Canadian chartered banks, being somewhat more conservative in nature, recognize the SR ED claim may or may not be approved. So if there is any risk in your financial structure as viewed by the bank they will not advance funds.

The private sector of Canadian finance is in fact doing the SR ED financing. Claims are financed on the basis of your firms overall financial status, although we add that even pre revenue companies or companies that are losing money can still obtain SR ED financing .


Every Canadian firm that files a SR ED claim should consider financing the claim if they feel the additional cash flow and working capital will assist their company in continued growth and success. Seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can show you how to Talk to an expert use this alternative financing as a great way to boost cash flow.


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 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

Sred Loan Financing Is Simply Cash Flowing Your R and D Tax Credits : No Shady Math Here For your SR ED Claim

SR&ED Financing Reverses That Going Nowhere Fast Feeling In Your SR ED Claim

OVERVIEW – Information on the finance of r and d tax credits in Canada. Sred loan financing provides ready cash flow for recovery of your SR ED claim

SR ED R and D tax credits in Canada can quite easily give Canadian business owners/ financial mgr's that ' uneasy' feeling when it comes to realizing the benefits of the program. SRED loan financing can very well remove that discomfort, allowing your company to reverse that ' going nowhere fast' feeling when it comes to recouping your cash. Let's dig in.

Suffice to say that we're quite sure that most businesses utilizing Canada’s Scientific Research & Development Program (aka’ SR&ED')
would not break their commitment to developing those new products and processes around which the program was founded even if there was no refund involved. It's that competitiveness and innovation that allow your company to survive grow and stand out.

The types and sizes of companies in Canada that utilize r and d tax credits runs the full gamut - from partnerships, start ups, to larger companies in the SME Commercial workspace.

' Government programs' tend to have a natural credibility factor in the mind of business owners/financial mgrs , yet certain programs such as SR ED as well as the Govt Guaranteed Business Loan have stood the test of time, providing well over 10 Billion $ of funding in total annually for thousands of firms just like yours.

Just as r and d is integrated into your business on an ongoing basis so can the financing of your refundable tax credit. Financing your SR ED claim all of a sudden makes a great deal (the program) even better as you realize back the cash refund aspect of the program. As a general rule the SR&ED consultants that prepare these claims for Canadian businesses can recoup almost 35% of the total amt of your spend. Claims can also be carried over from the previous year, and financed in the same manner. A true 2 for 1 bonus!

The quality and amount of your claim have a lot to do with the financing of your refund. That's because the loan value of your claim is 70% of the total refund due, and the quality of the claim helps guarantee that full govt refund, as well as the timing in which it is approved.

Maybe it's just us, but one a true irony of SR ED r and d tax credits is that your research does not even ultimately have to be successful for qualification of both approval, and even the financing. We suppose that's the govt's form of a ' participation ribbon'!

As soon as your accountants and SR&ED consultant have worked together to file your claim you are eligible for financing - however recent trends in SRED loan financing actually allow for claims to be financed for future claims also if you've started that process.

SR&ED financing is a simple business application process - with the main collateral for the loan being of course your tax refund. Loans are structured as bridge loans which allow for no payments during the duration of the loan. Definitely no ' shady math' here - just a simple finance application process with refunds typically being financed in several weeks from start to finish.

If you’re focused on reversing that ' going nowhere fast' feeling in your SR&ED process 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 SR ED R and D Tax credits finance.


7 Park Avenue Financial :
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 . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN SR&ED LOAN 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

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

Financing Sred Credits Will Get You Everywhere: The SR ED Refundable Tax Credit Loan

Ctrl Alt Delete : Rebooting Your SR&ED Claim Via A ‘SRED’ Bridge Loan

OVERVIEW – Information on financing sred ( SR&ED ) tax credits in Canada. A SR ED tax credit loan provides immediate monetization of your refundable tax credit for Canada’s Scientific Research & Experimental Development r&d program

Financing SRED (‘SR&ED’) credits in Canada is almost like rebooting your SR ED claim. A tax credit loan allows you to get an immediate reimbursement under Canada's Scientific Research & Experimental Development program.

Utilizing the cash from your refund has a dual benefit - you've eliminated the wait period in what for many firms is in effect a very important ' receivable', and at the same time it allows you to forge on in your competitiveness in today’s global marketplace.

Financing of your claim of course has nothing to do with your actual eligibility of the program... that's up to you and your ' Sred Consultant '. That whole process becomes the actual determination of how your products or processes qualify. Consultants on your claim work on either a fixed fee or a contingency fee basis - it's your decision although most appear to take contingency given it transfers all risk to the consultant!

Timing not only involves the financing of your claim and its monetization - you also have to ensure your filing deadline under your actual claim submission are in accordance with CRA guidelines.

Your SR&ED claim has several key elements, all of which hopefully maximize the total amount of your refund, and therefore your eligible financing. (NOTE - The tax credit loan is typically 70% of the total value of both your provincial and federal claim - the larger the refund the more you of course can finance)

Financing of your claim simply involves a basic business credit application that you would anticipate with any other type of financing. Naturally the ' collateral ' for the loan is in essence the actual refund itself. That refund depends on the quality of your narrative in the claim, the amount of employees of contractors that were paid and participated in the claim, etc.

The true power of the ' SHRED' refund is of course your ability to recoup the maximum amount of cash - the total cash refunded under the program is in the Billions of dollars in Canada under combined federal and provincial parts of the program. Typical refunds are in the 30-40% range based on the total amount of your R&D. Again, it’s your Sred consultant and accountant that have the obligation to maximize that claim for your company.

Your actual SR&ED is filed along with your T2 tax return. You can start to see the benefits of a sr ed tax credit loan by taking a look at the total timelines we're talking about - i.e. actually doing your r&d, preparing a claim with your consultant, and then filing it after your year end financial are prepared. Then of course potential audits and review by CRA of your claim kick in.

As we have noted financing refundable SR&ED credits is a very simple process. You typically would only consider financing a claim if you have a need for cash. Financing your claim should be measured against your needs and uses of the cash. Typical claims can be financed in a manner of weeks.

If you're looking for a SRED ' reboot ' - i.e. in our case the monetizing of your refund seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with your tax credit loan needs.


7 Park Avenue Financial :
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 . Info /Contact :

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

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

Research Tax Credits Are Financeable In Canada : Make Your SR&ED ( sred / s red) Claim A Cash Flow Bonus

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 :
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 90 Million $ of financing for Canadian corporations . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN SR&ED FINANCING EXPERTISE





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