A Beautiful Marriage
OVERVIEW – Information on SRED loans in Canada . SR ED refundable tax credit financing cash flows r&d expenses , accelerating working capital your firm has spent on research and development for future growth and profits and market domination
SR ED refundable tax credit financing could well be called the perfect marriage of cash flow and the maximization of government tax credits for research in Canada. These ' SRED LOANS ' help to power the economy in a number of ways - which is of course why the Canadian government provides billions of refunds each year to qualified claims. Let's dig in.
We're the first to admit and agree that even the name of the program is a bit too fancy and might well turn off many applicants. (SCIENTIFIC RESEARCH AND EXPERIMENTAL DEVELOPMENT ... aka ' SRED'!) That conjures up men and women in white coats, labs, etc. Yet the reality is that thousands of firms in almost every industry in Canada regularly successfully file claims for those billions of dollars we've mentioned.
Cash flowing your claim simply maximizes , and accelerates recovery of funds for eligible applicants, typically private companies and partnerships .Many business owners and financial managers who either are not fully aware of the program, or a just misunderstand it somehow feel they need to show profitability , or other forms of credit worthiness to both file and finance their claim .
The fairly technical work in preparing a claim is usually handled by a SR&ED consultant. These folks prepare the majority of claims and having a credible / experienced consultant is one key factor that enhances the finance ability of your claim. Its qualified consultants that both maximize a claim, add credibility to their approval from Canada Revenue, and, as we noted help the financing approval.
The total cost of preparing and financing a SR&ED tax credit filing are two separate matters. Preparation consultants typically work on a contingency fee, although fee for service preparation is absolutely available also. We've observed business owners appear to prefer consultants on contingency because these folks absorb all the time and financial risk involved in filing a claim.
SRED Loans are usually ' bridge loans ' - your company receives 70% of the total claim as a cash flow loan - no monthly payments are made in the interim period while you are waiting for claim approval. That other 30% of your funds? You receive it as soon as the claim is approved and funded by the govt, less financing costs.
One top expert analogizes your SRED claim to a well executed high school class experiment
Our final point today? Simply that if you're not familiar with either the program itself, or the financing of your claim 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 that beautiful marriage of cash flow and govt refundable credits.
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 TAX CREDIT FINANCING LOANS EXPERTISE
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7 Park Avenue Financial
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 '
