SR&ED Tax Credit Financing in Canada

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Turn Your ' Waiting Pain ' Into Happy When It Comes To Your Firm's SR&ED Refund Claim

Information on SR&ED financing in Canada. The ability to monetize your sred refund can be a key component of your overall cash flow strategy in the recovery of your r&d capital investment . SR&ED bridge loans.. work!

SR&ED (SRED) tax credit financing is a solid strategy used by more and more Canadian business owners and financial managers who wish to accelerate the benefits of Canada’s Sr Ed program. Cash flowing, monetizing, or factoring ( they all mean the same thing!) your Canadian Sr ed claim can accelerate cash flow and working capital for your privately controlled Canadian business that is utilizing SR ED credits under the governments program .


In many ways the financing of your Sr ed credit actually allows you to maintain your competitive edge, as the combination of your non repayable tax credit and the immediate financing of it are a ‘ double whammy ‘ in the face of your competitors who might not use this strategy .

A banker we deal with recently told us that current industry statistics show that many companies who are in fact eligible for the SR ED credit aren’t even applying for it, let along financing it. Therefore when your firm maximizes on the total value of your claim, and then generates instant cash flow on that claim you are clearly leading the pack in this regard.

Many clients tell us that they utilize the Sr Ed funds that they finance to assist in acquiring new equipment that allows them to maintain a competitive edge in their markets. The reality is of course that these funds can be used for an general corporate purpose , which might be things such as equipment acquisition, advertising and marketing, reduction in payables or debt, or of course the continued investing of even additional research and development efforts .

So what is the cash flow and working capital potential in your SR ED, and how do you unlock that potential? If you are already filing for SR ED credits you are no doubt working with the assistance of your client, or, alternatively, someone that is known as a SRED consultant. Having a solid resource in one or both of these parties allows you to maximize on your potential claim.

Once you have filed you claim we recommend that you consider immediately financing the claim. Naturally you don’t have to do this, and can simply wait the 3-12 months that it might take Ottawa and your particular province to review the claim, adjudicate it, and process it for payment. But, as we state, why not consider financing the claim.

Clients ask us how the actual process works. It is quite simple really. Your calim is generally financed at 70% of the total value of the amount you and your accountant and consultant have claimed. You can receive cash immediately after it is filed. In certain cases you can actually receive funds for the claim prior to financing – that whole process is called SRED accrual financing. Some of the basic criteria are simply that you must have filed a claim before, have a solid reputable party preparing it, and be prepared to demonstrate good records and accounting around those expenses you are intending to claim.

So how can we summarize in a ‘bottom line ‘manner. Its simply as follows – you should be filing Sr Ed claims if you are eligible. On filing you have the option of financing that claim, so you are bringing immediate cash flow and working capital to your firm on funds that are not repayable to the government.

Funds can be used for any company purpose, and proper utilization allows you to maintain a competitive advantage on your competitors. That’s using research as a cash flow generator – a solid financing 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 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

Factoring Your Sr&ED Claim For Working Capital In Canada

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Tired Of Waiting For Your SR&ED Refund ? Looking for a Cash Flow Solution Now? This Just In ! We've Got One!

Information on SR&ED Financing in Canada . Factoring or Cash Flowing Your  Sred Refund Now Puts Your Firm Back In The Cash Flow Positive Game!

Canadian business owners and financial managers don’t find waiting productive. So why should you have to wait to finance (in effect it’s a factoring or discounting) your SR ED claim. You shouldn’t have to and we will show you how.


To be able to finance a SR ED claim you of course have to have a SR&ED claim. That makes common sense. Canadian business owners know when they have a significant investment in their research and development and commercialization projects. That is more than intuitive, because they are spending real dollars, often considerable sums, to maintain their competitive edge in products, services, and processes. That’s of course why your firm should be finalizing a claim and filing it as soon as you can in conjunction with your fiscal year end. Naturally once you have filed the claim you can wait anywhere from 3- 12 months for the refund chq to arrive from Toronto or your provincial component from your provinces capital city.


Do you have to wait to recover those funds? Of course you can if you choose, but your claim is financeable if you seek out and talk to a trusted, credible expert in this area. Why not finance your claim, recover those funds now, and continue your investment in leading edge research den processes to maintain your competitive stance within your industry and product or service sector?


So what are the basics of financing that claim . Let’s review them in detail and ensure you have the under pinnings of a successful SR ED financing strategy.


As we mentioned you have to have filed your claim to begin financing it. In our experience the whole process, we tell our clients, takes two to three weeks if your full co operation is provided. Naturally if timing is important you could start the process a little in advance of filing your claim. Any Sr Ed calim can be financed, but those that are prepared by competent parties are in effect ‘more financeable ‘as they have a credibility and experience factor attached to them.


Does your own firm’s financial status play a part in the financing of your SR ED? We can say with assurance that 90% of the SR ED financing questions rely very specifically on using the SR ED as collateral for the financing. But naturally your firm has to be able to demonstrate some sense of on going viability with respect to sales prospects, etc. However lets be honest, many firms are using SR ED tax credits because they are in growth or start up mode, so that should not deter you from contemplating and discussing the financing of your SR ED .


A normal SR ED financing application includes the usual business info data you would submit with any business financing – i.e. info on your firm, its financials, info on the owners, etc. Loans or advances against your claim are generally made at 70% loan to value; in effect you immediately receive 70% of the total amount of your SR ED tax credit calim. The balance is remitte3d to yourself, less financing fees, when you calim is approved and funded in Ottawa.


A proper SR ED financing is structured so that you won’t make any payments while you wait, so it’s a pure cash flow and working capital strategy.


In summary, utilize your tax credits to recover significant portions of all your R&D expenses if you are a privately owned Canadian company. Ensure you consider a SR ED financing strategy if you wish to accelerate SR ED spending or simply use the funds for any general worthwhile purpose. Speak to a trusted, credible and experienced SR ED financing advisor to structure a calim that makes maximum financial sense for your firm.



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 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

How To Finance a Canadian SRED ( SR&ED ) claim for Cash Flow

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Looking To Stop Inertia On Your SR&ED Claim? Finance It!

Here’s How

OVERVIEW – Information on Sred claim financing in Canada. Your firms ability to monetize your sr&ed refundable tax credit is critical to cash flow success around your r&d capital investment in long term competitive success

Canadian business owners and financial managers who file SR ED ( aka SR&ED , aka SHRED ) claims in Canada are keenly aware that it is one of the true ‘ government grants ‘ that many people are referring to when they are researching the broad topic of government grants and loans .

Funds approved in your SR ED claim are non repayable, and we cannot think of a better program in Canada that both assists Canadian firms in ongoing research and development, as well as allowing Canadian to maintain momentum in new products, processes, and technologies .

Our is certainly not to questions why the government provides such non repayable grants, they simply do, and as a Canadian business owner you want to be able to maximize your claim.

SR ED credits are applied for every year when you file your tax return. Our focus is on ensuring the reader understands that this tax credit filing is the trigger that allows you to, if you choose, to also finance your claim. These claims are not traditionally financed by Canadian banks, as the banks we feel probably aren’t fully comfortable with the collateral. Most Canadian business owners also know that there is some risk involved in having your claim cut back a bit after it is reviewed by the appropriate department in Ottawa that hands SR ED claims.

If you wish to finance a Sr Ed claim it is important that you follow a much defined process. Let’s review that process and provide you with some additional tips and information on how the claim is financed and what benefits might come out of the cash flowing of your claim.

There exists in Canada a small boutique market in SR ED financing. Given the unique and specialized nature of this financing we strongly recommend that you work with a trusted, experienced and credible advisor in this area of Canadian financing. That will allow you to maximize the size of the financing we believe, but probably more importantly speed up the process.

When clients ask us how long it takes to finance a claim we generally advise on 2 to 3 weeks, assuming the full co operation of your firm in the usual back up to such a transaction with of course includes:

Application to Finance Sred
Related back up to the application – i.e. financial statements, etc
Copy of the SR ED (SR&ED) claim itself
Copies of prior year claims that were approved, if applicable

It’s basically as simple as that.

‘What amount of funds can we receive for our claim?’ That also is probably questions number two from clients – and the answer is that claims are generally financed at 70% loan to value, which means simply that for every $ 100,000.00 of claim you should expect to receive 70,000.00$.

SR ED financing is structured to your firm’s benefit – that is that they are loans that have no payment during the term of the loan. The term of the loan is of course as simply as long as Ottawa takes to process your claim. Various factors are involved in the timing – we can generally say it takes anywhere from two to twelve months to process your final refund cheque from Ottawa. At that time the other 30% of the claim is returned back to you by the SR ED financier, less the financing cost, or the ‘total time to carry the loan’

So in summary, you can of course wait from 3-12 months for your refund cheque for your sred claim, but why not consider putting that working capital and cash flow to work now. In reality all you are doing is collecting a receivable (the s red claim) faster than waiting for a long period of time. Put that money to work into more R&D to stay competitive in your industry, reduce your payables, or invest in additional marketing or machinery.

Take advantage of SR ED financing to inject immediate cash flow into your company. Talk to a SR ED finance advisor today!




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