How Not Knowing Sr&ed Tax Credit Financing Makes You a Rookie ! The True Tragedy Of SR&ED Claims Is Waiting! Until Now

 

YOUR COMPANY IS LOOKING FOR  SR&ED FINANCING!

MAXIMIZE YOUR SR&ED TAX CREDIT BY FINANCING THE R&D INCENTIVE PROGRAM REFUNDABLE TAX CREDIT - GROWTH FUNDING 101!

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

7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Oakville, Ontario
L6J 7J8

 

YOUR GUIDE TO SR&ED FINANCING - ACCESSING CAPITAL AND ACCELERATING CASH FLOW!

 

SRED tax credit finance loans eliminate the pain of... waiting... for your refundable tax credit under Canada's Scientific Research & Experimental Research program.

 

AVOID THE PITFALL OF  GOVERNMENT R&D FUNDING ... WAITING!

 

SR ED financing can quickly and efficiently complete the cycle in your firm's R&D strategy. Let's dig in on an essential sr&ed guide.

 

WHAT IS THE SR&ED PROGRAM? YOUR SR&ED GUIDE

 

The Canadian SR&ED program (SR&ED Scientific Research and Experimental Development )  is categorically one of the most solid initiatives in helping the private sector finance economic growth.  Given that in recent years the program has been scaled back a bit (less % credits = less refund cheque), the ability to maximize and monetize the total benefit of the program is key to better r&d cash management.

 

SRED IS A COMBINATION OF FEDERAL AND PROVINCIAL FUNDS

 

Remember also that the program is a combination of cooperation from both federal and provincial governments, depending on which province your firm originates. SR ED financing, by the way, finances both parts of the claim at the same time - federal and provincial.

 

WHAT IS A ' SR&ED CONSULTANT?

 

It goes without saying that your claim's actual quality is key in both initial approvals under the program and one consideration in financing approval. While the smallest percentage of firms still prepare their own claims (and in many cases are successful), the vast majority of refund claims are prepared by qualified independent SR& ED consultants. They may be associated with the large C.A. / Accounting firms for sr&ed credits accounting treatment, or are simply independent contractors in many cases. 

 

While in the past, these consultants were ' behind the scenes, 'they are now clearly upfront, including being identified on your claim, as well as having to state their remuneration on claims preparation.  (The majority of SR ED consultants prepare the sr ed  claim  on ' contingency '  - at their expense and time, choosing to take a % of the successful claim as their ' fee.' Their work in documenting your ' scientific or technological uncertainty ' is invaluable to businesses performing r&d for the investment tax credit sr ed refund.

 

 

LET 7 PARK AVENUE FINANCIAL  DEMONSTRATE THE POWER OF CASH FLOW FINANCING YOUR SRED CLAIM 

 

Since SRED Tax Credit Finance Loans are in effect short-term bridge loans, it makes total sense for business owners/managers to ensure their claim has taken advantage of govt offerings such as ' per claim ' approval. Naturally, any claim of good quality that doesn't even necessitate an audit is a good thing.  Suffice to say; the govt is on record as saying that claims they consider ' high risk ' will be audited and scrutinized with more vigour.

 

Let's get back to basics - i.e. the financing of your claim. It's possible to receive financing approval in a matter of days based on a simple application process that identifies your firm, its business, a copy of your claim, and details on who prepared it.

 

YOU CAN PRE-FUND NEXT YEARS CLAIM FOR YOUR CRA TAX CREDITS

 

Business owners/managers always seem open to some good news - in the case of SR ED financing, it's good to know that claims can be financed even before final filing... and if that wasn't enough, next year's claim financing could commence almost immediately. That’s cash flow acceleration 101 under the sr ed claim process!

 

SR&ED LOANS ARE SHORT-TERM AND HAVE NO SET REPAYMENT

 

SR&ED loans are structured as short-term bridge loans - your company makes no payments for the loan duration. Loan advances are typically 75% of the total amount of your combined federal and provincial claim.

 

KEY TAKEAWAY - SR&ED FINANCING

 

Canadian businesses performing r&d can leverage financing that is non-dilutive in nature for refunds for refundable tax credits as well as grants.

Funding for an sr ed loan is fast and efficient and funding can be on completion and filing of a claim, or on a pre-filing advance funding basis. This helps smooth out the ' cash flow lumpiness ' in many early-stage and pre-revenue businesses engaging in r&d.

Funding sr&ed does not dilute owner equity and is cheaper than almost all other forms of alternative financing.

 

 

CONCLUSION - LET SR&ED FINANCING ALLOW YOU TO CAPITALIZE ON THE INVESTMENT  TAX PROGRAM FOR YOUR R&D 

 

Tax credits for research and development spending are a valuable part of any business that invests in r&d. If you're looking to eliminate a true business tragedy (waiting for a govt refund chq ! ), seek out and speak to 7 Park Avenue Financial,  a trusted, credible and experienced Canadian business financing advisor who can assist you with your r&d tax credit finance request. Let us make the SR&ED funding process easy and accessible for all  Canadian companies.

 

FAQ:FREQUENTLY ASKED QUESTIONS  / PEOPLE ALSO ASK / MORE INFORMATION

 

   

What is SRED financing?   

 

SR&ED tax credit financing is a financing solution that allows a company to access funding for the r&d sr&ed credit when the claim is filed with the Canada Revenue Agency/CRA, or, if the company chooses, in advance of filing the claim as the company accrues and documents its r&d  under the sr&ed program offered by the federal and provincial government. Sr&ed L loans are short-term bridge loans, a type of ' innovation funding ', collateralized by the actual sred refund - Financing options include advance funding for claims not yet filed but accrued. The loan application process is very quick and usually takes only a few weeks from initial submission to funding.  

 

  

 

What are the SR&ED tax incentives?

 

SR&ED tax incentives are government investment tax credits under a refundable tax credit which allows a company to conduct research and development in Canada -  The tax incentive is in the form of a tax credit via a cash refund or in some cases a deduction against income. R&D Tax credits can be claimed by privately owned corporations or individuals.

 

 

What can be claimed on SRED? 

 

 

Allowable expenditures for sr&ed in Canada include salaries and wages incurred under the research, as well as eligible deductions for materials and applicable overhead and third-party payments to contractors relative to the research - Companies must supply copies of supporting information that backs up the expenditures - Many businesses utilize third-party sr&ed consultants specializing in the preparation of valid claims which helps with risk mitigation around the success of a claim submission as well as potential help under an audit defence.

 

 

What are the SRED categories? 

 

 

The categories  for sr&ed  tax credit calculation include 3 areas of focus under Canada's Scientific Research and Experimental Development program  - basic research , applied research and experimental development.

 

What is the SR&ED program?

Canada's  Scientific Research and Experimental Development (SR&ED) program is a government program that provides federal tax incentives to companies in Canada that assist a business in conducting r&d.

 
How can financing and loans help with SR&ED tax credits? 

 

Financing sr&ed tax credits via short-term sr&ed bridge loans / sr ed loan  helps a company fund r&d activities while helping the business maximize research efforts in scientific or technological advancement  by providing a tax credit for certain eligible expenditures under this tax credit program.

 
What types of financing options are available for SR&ED? 

Traditional financing options are typically not available for financing sr&ed tax credit claims - Canadian banks on balance do not fund these claims although the sr&ed credit is a government receivable. Firms that do not utilize sr&ed finance solutions are often forced to consider either additional equity options that are dilutive in nature as it relates to relinquishing additional ownership - Other forms of financing such as short-term working capital loans or merchant advance loans are very expensive - SR&ED loans allow a business to access funds that allow for additional funding at a very competitive cost/interest rate.

 
 What are the eligibility criteria for SR&ED tax credits and loans? 

SR&ED tax credit eligibility criteria for obtaining SR&ED tax credits include businesses being able to document eligible r&d activities around documenting their claim and adhering to reporting and filing requirements. Funding for sr&ed tax credits and loans is a very simple process which requires the company to supply basic information on the business, as well as a copy of the sred claim or accrued work to date.

  
How can I ensure that my company is taking full advantage of the SR&ED program and its financing options?  

In order to maximize sr&ed claims and approval for the refundable tax credit canadian controlled private corporations must ensure they meet  sr ed eligibility criteria as well as being able to document r&d work - typically this is more successful with the use of a third party sr&ed industry consultant specializing in claims and approval.  Financing of a claim is handled with the use of a third-party finance professional such as 7 Park Avenue Financial.

 

It is important for claimants to realize the refunds are provided for qualified sr ed projects regarless of the final success and outcome of the r&d.
 

The SR&ED Loan Process - Financing Simplified! Unlock The Benefits Of SR&ED Tax Credits - Cash Flow!

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YOU ARE LOOKING FOR SRED TAX CREDIT FINANCING

INVEST IN R&D WITH CONFIDENCE VIA THE BENEFITS OF SRED LOAN FINANCING

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

Or Email us with any questions on Canadian Business Financing

                                      EMAIL - sprokop@7parkavenuefinancial.com

 

 

 

THE SECRET TO MAXIMIZING SR&ED TAX CREDIT -  A SHORT-TERM BRIDGE LOAN

 

Is it possible to combine the benefits of SR&ED with the benefits of SRED tax credit financing for an SR&ED loan that makes sense?

It sure is and let’s help you understand some of those basics for Canadian companies. Let's dig in!

 

"The government's view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it." - Ronald Reagan

 

Well,  not Canadian, but Ronald Reagan might have had it right, given Canada's commitment to helping subsidize r&d in Canada. Canada's  Scientific Research and Experimental Development (SR&ED) tax credit are one of the 2 most popular government programs in Canadian business ( the other one is the Canada Small Business Financing  Loan Program !), demonstrating Canada's commitment to helping customers with innovation and economic growth goals under a government incentive program that works.

 

It's important to note that companies who qualify for SR&ED eligibility claims are candidates for the sr&ed loan process to capitalize on government financial incentives - That ability to cash flow their tax credits via the collateral of the SR&ED claim allows a company to receive cash in advance of filing the claim, or even prior to filing their claim based on accrued work in their r&d process.

 

WHAT IS SR&ED TAX CREDIT FINANCING AND HOW DOES THE SR&ED LOAN PROCESS WORK?

 

If you are either filing an SR&ED claim for the first time or if you're a repeat "offender" - translated = you have experienced SRED claim success for years... then why not combine financing power with your claim and recoup your funds faster. In today’s world it seems always about speed it seems, so if the Canadian government is paying you to do research, and you can recoup and deploy those funds even faster by financing your claim, well, why wouldn’t you? Advance funding is always better than waiting.

 

 

HOW DO SR&ED TAX CREDITS WORK? 

 

Companies performing r&d  via the tax credit program can utilize their qualified sr&ed expenditures to access the refundable r&d credit under the sr ed claim process. Canada Revenue Agency/CRA sets some basic requirements for a business to qualify for the tax credit,  It's a 4 part test around ensure that the purpose of the work is focused on new functionality in performance and reliability and quality of the firm's products or services.

 

As well the company must demonstrate the elimination of uncertainty via a process of experiments that are technological in nature.


Our focus here in our shared information is financing your eligible claim... so we assume you are fully aware that if your firm is developing new products and services, manufacturing prototypes, improving processes, developing software, or advancing manufacturing... well ... We think you get the point! This is simply because your firm is a poster boy for SRED financing and an SRED loan and you should be filing to recover in the range of 35-40% of all your expenses.

Your credit is a non-repayable credit, so your ability to monetize your claim and get that cash flow working into your firm's operating cycle is key.

So how can those SRED tax incentives be monetized? Simply speaking it’s the ability you have to use your SRED receivable, because it is an account receivable, and finance it in a manner that you would just as if it were any customer - except that in this case, the customer is a pretty good paying client... i.e. the federal and provincial government.

Sound complicated? Nothing could be simpler. Let’s cover the basic process and focus back in on those benefits.  That cash advance for your r&d refund becomes a predictable source of cash flow without diluting owner equity. A business's ability to manage cash flow is key in early stages, so the ability to ensure cash flow that is recurring under r&d helps a customer grow.
 

 

 

 

HOW DOES THE SR&ED LOAN PROCESS WORK - WHAT STEPS ARE INVOLVED

 

To finance a claim you have to have a claim. It makes sense so far, right? Claims can be prepared by either yourself or someone that is commonly called an SRED consultant. We wouldn’t be perfectly honest by telling you that claims prepared by outside respected consultants carry far more weight than claims prepared internally by yourself or your accounting firm. It’s simply a case of relying on expertise.

 

We're often asked - Do I need a SR&ED Consultant ? That is up to you as the business owner or financial manager when it comes to technical reports and demonstrating applied research - these consultants play a large role in the Canadian sr&ed industry. They assist in preparing claims from a technical content and financial point of view and work closely with Canada Revenue Agency and provincial authorities where required. They play a key role in the sr&ed tax credit calculation work required under the program under CRA SR&ED and sr&ed credits accounting treatment.

 

Consultants in this area can assess claim eligibility as well as helping to file the claim. Consultants with relevant experience in your industry will usually be the best choice - Most sred consultants work on a contingency basis, which transfers the risk of  sred project to the consultant - some firms work on claims at typically accounting firm rates on an hourly basis. Industries that are common for r&d projects include alternative energy, medicine, oil and gas, software, life sciences and environment and renewal energy.

 

 

 

ELIGIBILITY CRITERIA FOR SR&ED FINANCING - DOES YOUR BUSINESS QUALIFY? 

 

What are the eligibility criteria for SR&ED financing and how do I know if my company qualifies?

After your claim is filed you complete a simple financing application consisting of info about our firm, your current financial situation, as well as providing the actual technical claim and tax filing copy. SR ED tax credit financing relies on your claim being filed - in certain special situations you can actually finance the claim pre-filing - but we'll leave that one for another day.

 

 

  

BENEFITS OF SR&ED TAX CREDIT FINANCING VERSUS OTHER BUSINESS FINANCING OPTIONS

 

  
The ability of many firms, particularly start-ups and tech firms that burn through a lot of cash, to recoup SRED funds is a key driver in the whole SRED loan process. Understanding the SR&ED loan process is easy - That cash flow in many cases is seen by our clients as the lifeblood and in some cases the largest amount of cash they will receive in the current year.

Many business owners don’t know that you can file for two years, which of course simply means you’re doubling the amount of cash you can claim and that claim is financeable when it comes to the benefits of sred financing via the bridge loan process.

 

     

COMMON CHALLENGES FOR SR&ED .. AND THE SOLUTION

 

   

Many smaller filings these days for SR&ED claims seem to be coming through faster in the form of cash refunds... If you have a larger or first-time claim it can take many months, potentially calling for a technical review of your project.

  

 

  

HOW MUCH CAN YOU GET FOR YOUR SR&ED CLAIM - UNDERSTANDING THE LOAN-TO-VALUE RATIO & REPAYMENT

  

  

That’s where an SRED loan and SRED tax credit financing come in because 75% of the SR&ED claim is generally advanced in the form of a bridge loan. You make no payments on the loan and the loan is, in effect settled when your final refund comes in from Ottawa. That allows you to utilize those funds for working capital, equipment, ongoing SR&ED work, and just any general corporate purpose.

 

Understanding the eligibility criteria for sr&ed financing and the  sr&ed loan process and how to secure the sred loan is easier than you think - allowing your company to maximize the benefits of sred loan financing at very competitive rates. Canadian banks and traditional financial institutions are not the SR&ED tax credit loan providers in Canada.  And yes, you can finance your claim if you have not filed it yet.

 

Maximizing the sr&ed tax credit financing solution is easier than you think when it comes to fuelling growth -  with funding often provided in a matter of a couple of weeks - Talk to the 7 Park Avenue Financial team about the benefits of SRED financing versus waiting for your tax credit refund. We'll show you easy it is to navigate the sr&ed loan application process.

 

CONCLUSION - GET AHEAD OF THE R&D GAME WITH SRED TAX CREDIT FINANCE TO OPTIMIZE CASH FLOW

Speak to 7 Park Avenue Financial,  a trusted, credible, experienced Canadian business financing advisor in the SRED tax credit financing area.

 

This will increase your chances of a successful and timely approval, with most financings for an SRED loan happening within a 15-20-day period.  That’s an SR&ED cash flow optimization strategy that makes sense for Canadian businesses via innovative funding needs that accelerate one of Canada's best funding programs for business. right?

 

  

 FAQ: FREQUENTLY ASKED QUESTIONS / PEOPLE ALSO ASK / MORE INFORMATION   

 

What is SR&ED financing?

 

SR&ED financing is a tax incentive program under the Scientific Research and Experimental Development program. Businesses that are Canadian-controlled private corporations performing r&d  in scientific or technological uncertainty are eligible to access financial support that helps in cash management in their r&d work.

 

The tax refund is in the form of a refundable tax credit and allows the company to access capital as it strives to overcome a technical challenge in its industry, Eligible expenditures can be financed after claims have been filed, or accrued sr ed work in the current fiscal year and can also be financed for eligible projects.  Focusing on technological advancement and technological uncertainty - with many companies working in software development.

 

WHAT ARE SOME IMPORTANT TECHNICAL TERMS TO UNDERSTAND IN SR&ED & SRED FINANCING

 

There are some key terms that will help business owners better understand the SRED program and the sred loan process -

Eligibility criteria: Companies must meet certain conditions to be eligible for sred approval and sred financing -  The Canadian government provides billions annually under the sr ed program for Canadian and foreign-owned businesses in Canada.

 

Tax Credit: this is a credit against income taxes owing or a refundable tax credit

R&D Activities: research and development activities   is work done in experiment development and investigating and technological development

Claim Preparation:  SRED claims must be filed  under a certain process  that allows a company to receive the tax credit

Tax credit rate: a certain percentage of r&d expenses are eligible for sred

 Loan-to-value (LTV) ratio  SRED Loans are advanced at a value of the total claim and are typically in the 75% range - Loan repayment is structured as a short-term bridge loan with no payments being made during the term of the loan - the loan collateral is the sred claim itself -  In the underwriting process the sr&ed lender asses general eligibility for sred financing

 Underwriting: The process of evaluating a company's financial situation and creditworthiness to determine its eligibility for the SR&ED loan. While there might be other financing options for a company to access capital  ( term loans, working capital advances) these forms of financing can be expensive and can add debt to the balance sheet.

 

What are the requirements for R&D credit?

There are 4 key requirements for Canada's r&d credit - businesses must show a qualified purpose around improving a part of the business through performance, reliability, etc. Additionally, the focus must be on eliminating uncertainty via the process of experimenting in a technological manner.
 

 

 

How much does an SR&ED consultant charge?

 

Sred consultants charge either an hourly rate or in some cases a contingency fee based on a percentage of successful claims of a sr ed refund.Consultants focus on maximizing refunds based upon their expertise in different industries. Claims on contingency avoid the cost and time in preparing claims andhelp to avoid rejection of claims by Canada Revenue Agency. Consultants focus on keeping proper records and providing CRA with the information it needs for the r&d credits.

 

 

Sr ed Tax Credit Financing Sred Loan Solutions

 

 

Click here for the business finance track record of 7 Park Avenue Financial

SR&ED Financing - Cash Flow via Tax Credit Financing

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A Better Way To Take Advantage Of Your Sr&ED Refund ? We've Got One!

Information on Canada's SR&ED program. The ability to cash flow finance your SRED credit is a potential key benefit when your firm takes advantage of the SR ED refundable tax credit

The Sred program for tax credits is one of a small handful of government programs in Canada that in a very direct fashion turn credits into real cash flow and working capital that is non repayable . When business owners find out that they don’t have to wait anywhere from 3-12 months for their refund, and that they can discount, or monetize that tax credit now they are pleasantly surprised.







The question then becomes simply understanding the mechanics and benefits of such a financing – i.e... answers to the basic questions –



How much can I get?



What does it Cost?



What is involved?



What are the benefits of financing my tax credit now versus waiting for the cheque from the federal and provincial governments in Canada



Let’s cover off some of the answers and the basics you need to know to make an informed decision in this regard.

Business owners that either have prepared SRED claims in the past , or who are preparing them for the first time are always advised by their accountants and sred consultants as to how much the claim will be for . The reality is that this claim is filed at the same time you file your corporate tax return. If you have highly confident that you will receive the full amount of your claim we see many clients actually booking this future cheque as an ‘ account receivable ‘ – i.e. money that is due their firm just as if it was a sale to a customer .

So when you finance that claim you are dealing with an absolute amount. But the one thing to understand is that generally advances under the SRED tend to be in the 70% range based on the total value of the claim. So for example $ 300,000 dollar claim filed by your firm has the potential to net you 210,000.00 as a working capital loan should you choose to cash flow or monetize that claim now.

Although we see some claims as much as a million dollars from clients, the reality is that most claims tend to be in the 200 – 500k range, some smaller, some larger .



On to costs. Generally the overall size and quality of your claim, coupled with the amount will dictate the costs of financing the claim. A few key points should be kept in mind, and they clearly are in the category of ‘benefits ‘. That is to say that when you undertake a SRED loan you receive 70% of the claim immediately – there are no payments made unlike a regular loan, and you receive the final 30% of the claim when the refund is made by CRA, or, if you choose, when they indicate in writing or via their technical audit that the claim has been approved.



The financing costs are deducted out of this final 30%. So clearly the overall benefit of financing your SRED claim revolves around taking that cash and working capital and putting it to work in your business right away. Putting those funds to work might mean acquiring new equipment, reducing payables, investing in sales and marketing of your product services, etc.

A tax credit sred financing loan is not unlike any business financing. An application with typical business background data is completed , one of the key additional pieces being of course the actual sred claim you have filed, and , in some cases, proof of your success in previous years .



We advise clients the whole application and diligence process takes about 2- 3 weeks, so if you are focused on financing your sred claim you should undertake your sred financing negotiations as soon as you have made up your mind to finance the claim.

Everyone agrees the SRED program is the government’s way of encouraging in a measurable way (their cash back to your firm!) research and development. If you have filed claims in the past, or are filing for the first time you should also investigate the benefits of financing your claims.



Its non repayable money – why not put it work as early as possible to grow sales and profits and improve you overall financial picture. That’s a solid business financing strategy. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in cash flowing your claim,



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 : Trending Now! Here’s Why!

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Tired Of Waiting For Your SR&ED Cheque? Finance Your Refund & Access SR ED Bridge Loans

OVERVIEW – Information on sr&ed tax credit financing in Canada. The ability to finance some , or all of your sr ed refundable tax credit is key to cash flow success under the SRED program

SR&ED claim waiting isn't fun. Any firm that has an R&D capital investment wants to know their claim is approved and being processed by the federal and provincial government. But did you know that you refund can be financed... today? Let's dig in.

The process of financing your claim via a SR&ED bridge loan raises immediate capital, often much needed, for your company. Naturally proceeds of this ' bridge loan' can be used for any purposed, including of course more R&D investment - allowing your company to maintain its coveted competitive edge.

SR&ED funding is truly a ' business personalized solution' for your R&D cash flow needs. By choosing the right SR&ED consultant to prepare your claim and facilitate its filing is key to avoiding the financial repercussion that come from audits, requests for more info, etc. Don't underestimate the need for a solid preparation of your claim.

Most companies in fact have consultants prepare their claims on a contingency basis - meaning the risk of success is mostly transferred to the SRED preparer.

Each year there are some dramatic and less dramatic changes in Canada's SR&ED program. Companies that use the program are in pretty well every industry in Canada - that includes mfg, food, technology, life sciences... and on it goes.

Federal and Provincial govt seem focused on continually changing and modifying the program - focused on ensuring both the govt and your company get the right ' ROI ' from the program.

Yet through all those changes SR&ED Loan funding remains the same. In fact it's improved dramatically, allowing you to fund credits prior to filing, or setting up a SR ED credit line, etc. Funding can often happen within a couple weeks assuming full co operation and documentation around your application.

How much can you get? We're glad you asked - Typically sred loans are based on 70% of the total value of your claim.

So, tired of waiting for your SR ED refund? Finance it and use that cash flow to grow and replenish your business funding needs. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can effectively manage your SR ED loan process.






7 Park Avenue Financial

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 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 Tax Credit Financing – Your SR&ED Loan is Approved

Is it possible to combine the benefits of sr ed grants with the benefits of sr ed tax credit financing for a sr&ed loan that makes sense? It sure is and let’s helps you understand some of those basics.

If you are either filing a sr&ed claim for the first time, or if you're a repeat "offender" - translated = you have experienced sred claim success for years... then why not combine financing power with your claim and recoup your funds faster . In today’s worlds it seems always about speed it seems, so if the Canadian government is paying you to do research , and you can recoup and deploy those funds even faster by financing your claim, well ,, why wouldn’t you .

Our focus here in our shared information is financing your claim... so we assume you are fully aware that if your firm is developing new products and services, manufacturing prototypes, improving processses, developing software, advancing mfg ... well .. We think you get the point! Which is simply your firm is a poster boy for sred financing and a sred loan and you should be filing to recover in the range of 35-40% of all your expenses.

Your credit is a non repayable credit, so your ability to monetize your claim and get that cash flow working into your firms operating cycle is key.

So how can those sred tax incentives are monetized? Simply speaking it’s the ability you have to use your sred receivable, because it is a receivable, and finance it in a manner that you would just as if it were any customer - except that in this case the customer is a pretty good paying client... ie the federal and provincial government.

Sound complicated? Nothing could be simpler. Let’s cover off the basic process and focus back in on those benefits.

To finance a claim you have to have a claim. Makes sense so far, right. Claims can be prepared by either yourself or someone that is commonly called a sred consultant. We wouldn’t be perfectly honest by telling you that claims prepared by outside respected consultants carry far more weight than claims prepared internally by yourself of your accounting firm. It’s simply a case of relying on expertise.

After your claim is filed you complete a simple financing application consisting of info about our firm, your current financial situation, as well as providing the actual technical claim and tax filing copy. SR ED tax credit financing relies on your claim being filed- in certain special situations you can actually finance the claim pre-filing - but we'll leave that one for another day.

The ability of many firms, particularly start ups, and tech firms that burn through a lot of cash , to recoup sred funds is a key driver in the whole sr ed loan process . That cash flow in many cases is seen by our clients as the life blood and in some cases the largest amount of cash they will receive in the current year.

Many business owners don’t know that you can file for two years, which of course simply means you’re doubling the amount of cash you can claim.

Many smaller filings these days for sr&Ed claims seem to be coming thru faster in the form of cash refunds... if you have a larger or first time claim it can take many months, potentially calling for a techncial review of your project.

That’s where a sr Ed loan and sr Ed tax credit financing come in, because 70% of the sr&Ed claim is generally advanced in the form of a bridge loan. You make no payments on the loan and the loan is in effect settled when your final refund comes in from Ottawa .That allows you to utilized those funds for working capital, equipment, on going sr ed work , and just any general corporate purpose .

Speak to a trusted, credible, experience Canadian business financing advisor in the sr Ed tax credit financing area. This will increase your chances of a successful and timely approval, with most financings for a sr Ed loan happening within a 30 day period. That’s a sr&Ed cash flow optimization strategy that makes sense, right?

-
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 6 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/sr_ed_tax_credit_financing_sr_ed_loan.html