You Can Finance A Tax Credit? Are You Kidding? Financing Film, Media and SRED ( SR&ED ) Credits In Canada

The Art Of Tax Credit Financing – Easier Than You Think!



Information on the financing of tax credits in Canada . Film financing, SRED research and Media credit claims can all be financed for cash flow and working capital finance solutions







Tweet

Are we kidding? Definitely not! Canadian business owners, including those in the film and video industry in this case can access much needed funds when it comes to film tax credit financing and SRED (SR&ED) finance. And that includes media tax credits also, as that is probably one of the fastest growing aspects of the entertainment industry.



The good news is that you don't need any secret techniques to complete the monetization of tax credits in Canada. Frankly, compared to some comparable U.S. programs it could not be easier and more straightforward.



As we have noted, today we are primarily talking about 2 specific tax credits when it comes to financing - the first is the ' SRED' program, and , at the opposite end of the spectrum an industry fraught with excitement ( and frustration?) , film, TV and digital media projects.



Let’s do the SR&ED recap first! We can safely say that, more than ever, its all about the quality of your claim. The ' advisors' and ' SRED Consultants ' are a mini industry in Canada - in effect they are the brain trust preparing the majority of claims in Canada.



The majority of transactions completed by these consultants and advisors bill their work on a contingency basis, in other words they are assuming a large part of the risk on the acceptance and approval of the claim. It's of course up to you as a business owner/manager to source a consultant that’s capable and experienced, as different industries have different nuances.



It's their work that will be viewed by your CRA office when it comes to legitimacy and amount requested. The fact that the SRED credit is a non repayable cheque from the government allows thousands of Canadian corporations to access billions - yes that’s billions with a ' b ‘, of dollars that is used for further research , working capital, basically any general corporate purpose .



Timing is always a discussion point in SRED claims. First time claimants typically might have their claims audited from both a combination of technical and financial accuracy. That of course always comes back to the quality of your claim.



Let's move on to the subject of... ‘Cash '. Not all SRED claimants know their SR&ED claim can be financed. And the good news, it’s hardly a complex proposal. A basic business application that includes your firm’s financials, a copy of the SRED claim, and some supporting information on the claim and you company is all you need. SRED loans are typically done at 70% loan to value, simply meaning that for every $ 100,000.00 of claim your loan amount be in the 70k range. And the monthly payment? 0. Yes Zero. That’s because your loan is repaid when you receive your government chq - the remaining 30% comes back to you less financing costs.



One of the most dramatic changes in SRED financing is that fact that you can even get accrual financing these days. That simply means you can cash flow your claim prior to filing it, as you spend and recoup funds. Now that’s creativity.





Canada is a leader in film, TV and digital media incentives. And those incentives, aka the ' tax credit ' can be monetized. And that includes, as we have noted the digital media tax credits that are starting to be a huge part of the industry. The largest factor in the make up of the digital credits is the emphasis placed on recovering your actual labor expenses. Simply speaking, you're recovering, via a non repayable credit, a majority of your salaries on your projects.



Using Ontario as an example it is safe to say that your actual programmers, contractors, employees, etc must reside in Ontario. That makes sense, but the Media tax credit is available in pretty well all the provinces of course.



Generally speaking your film, TV and media claim has significantly less risk from an audit or claw back perspective. In other words, you just have to prove you spent the money which can easily be verified via your payroll records, etc.



The process for financing film, TV and media credits. Same as our SRED. A basic application, copy of your claim and supporting data, etc. And those same financing criteria remain intact, relative to amounts financed, etc.





Our bottom line today? Film tax credit financing, SRED finance, and Media tax credits are viable cash flow assets for any owner of the credits. Use them to grow your company, complete your projects, or start another project. Speak to a trusted, credible and experienced Canadian business financing 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


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

SR&ED Or SRED ? – Call It What You Want But Take Advantage of SRED Funding Or Factoring!

Tweet

Financing your SR&ED Claim Makes Cash Flow Sense








Information on sr&ed financing in Canada. The ability to factor sred claims enhances cash flow for recovery of your r&d capital investment

Semantics we tell clients. You can call it you Sred claim, your Shred claim ( they use that a lot also ! ) or your SR and ED claim . You can even throw in an ampersand and correctly write it as SR&ED.

But there is only one bottom line, which is, why you aren’t considering financing your claim. Putting our semantics aside many business owners and financial managers are inquiring as to the financeability of their claim. More often that not they have been told by their bank that this type of claim is not financeable, and even though you are showing it on your books as a receivable it cannot be margined for working capital and cash flow .

Two words. They are wrong, as Sr Ed claims can be financed in a large number of situations. They are financed utilizing Sr Ed Canadian business financing advisors who are experienced in this niche area of Canadian finance.

We believe it’s always good to recap the basic and set the stage for our financing discussion. The program is of course a federal program, in concert with the provinces, that encourages small, medium, and dare we say it, large corporations to conduct research on products, process, etc.

How committed is the government to this program ask clients? Very we say, given that approximately 4 Billion dollars are doled out each year to the 1/3 of the companies that take advantage of the program. That of course infers that 2/3 of eligible customers in fact don’t use the program. We have heard a litany of reasons around why they don’t from clients - they include : we're too busy, its sounds complicated, we don’t want to get audited , our r&d spending is not large enough, etc . These firms would simply be better off keeping it simple and saying, ' No we don’t want funds that are non repayable that re-imburse us for our r&d’, because that’s in effect what they are saying.

If you have a valid claim prepared by either an experienced internal party, but more preferably a true sred consultant then you can finance your claim. Funds for approximately 70% of the claim value are provided to your firm with the collateral of course being the SR ED receivable. Of course you can wait for 3, 6, or 12 months to receive your funds, but why not consider putting that valuable cash flow and working capital back to work in your business.

Clients who finance Sr &ed claims typically use the funds for general working capital purposes, further r&d , new equipment, marketing, etc . The bottom line is that you choose the use of the funds. And by the way, that other 30% of your claim is still yours of course, it’s returned to your firm, less financing costs, when the government sends your cheque. And get the news get any better, but no payments are made on the SR Ed loan, interest simply accrues and is calculated at the end of the financing.

Don’t fail to consider sr &Ed financing as a way to stay one step ahead of the competition and satisfy your cash flow and working capital needs at the same time. Speak to a trusted, credible and experienced sred Canadian business financing advisor to assist you with the factoring of 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

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 - SR&ED Finance Loans in Canada

Tweet

SRED Financing is your firm's ability to take immediate cash flow and working capital advantage of our SR&ED tax credit claim. This program, (formal name = Scientific Research and Experimental Development) is bar none the best tax incentive program in Canada. Other than being taxable as income the refund you receive from the government is a non repayable grant. What could be better than that?

The irony in this great program is simply that almost 70% of companies in Canada that are eligible for the program do not even apply, let alone receive their funds! It clearly is a source of untapped cash flow and working capital for your Canadian business that should be maximized to the hilt.

The other 30% of Canadian firms who use the program utilize it around their efforts to develop new products and services, building prototypes, and solving technological challenges.

So your Canadian controlled private company utilizes and files SRED filings. Did you know your claim can be financing immediately after you file it, literally the same day. Specialists that work as 'SR&ED consultants are experts in preparing your claim and in Canada your SRED claim can be prepared at your cost - and you keep all the proceeds of the government grant, or alternatively, your claim can be done on a contingency basis, at no cost to yourself, and the consultant usually keeps anywhere from 10-30% of the total refund received.

However most Canadian business owners and their SRED consultants do not know that your claim can be financing, either during the preparation of your claim, (yes, before your file, if you qualify!) or immediately on filing of your claim.

Generally with this type of financing you receive immediately approximately 70% of the value of your claim. The other 30% still comes back you of course, but its simply a bit of a buffer to cover financing costs and any risk that a portion of the claim will be disallowed or clawed back.

When we think in terms of specialty financing we can categorically state that SRED financing is specialty financing in Canada. We urge clients to locate a business financing advisor who has credibility, experience and background in this area.

The SRED financing process is not as complicated as you seem if you are well prepared and have access to good assistance. Its as simply as completing a basic business financing application, ensuring proper back up is in place and valid. That includes info on your company, the SRED claim itself, your previous SRED claims if you have filed previously etc.

The reality is that SRED financing can be completed within 2-3 weeks of starting the process. The beauty of this type of financing is that no payments are made on the SRED loan. In effect you can say that you have factored or discounted the SRED claim. You are simply waiting for your cheque from Ottawa, and are making use of the working capital and cash flow now. That's a solid interim financing strategy for many firms, and that cash can be used for reduction of payables, investments in new equipment, additional staff, etc. The bottom line = any general worthwhile corporate purpose.

In summary, of course ensure you are taking advantage of Canada's Sr&Ed program. Once that is the case you have the option of financing your claim, allowing you to maximize the true benefits of the program, i.e. the recovery of your R&D expenses in the most time efficient manner possible. That's 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

















Article Source: http://EzineArticles.com/expert/Stan_Prokop/432698


Article Source: http://EzineArticles.com/4303816

SRED Financing - SR&ED Finance Loans in Canada

Tweet

SR&ED Financing is your firm's ability to take immediate cash flow and working capital advantage of our SR&ED tax credit claim. This program, (formal name = Scientific Research and Experimental Development) is bar none the best tax incentive program in Canada. Other than being taxable as income the refund you receive from the government is a non repayable grant. What could be better than that?

The irony in this great program is simply that almost 70% of companies in Canada that are eligible for the program do not even apply, let alone receive their funds! It clearly is a source of untapped cash flow and working capital for your Canadian business that should be maximized to the hilt.

The other 30% of Canadian firms who use the program utilize it around their efforts to develop new products and services, building prototypes, and solving technological challenges.

So your Canadian controlled private company utilizes and files SRED filings. Did you know your claim can be financing immediately after you file it, literally the same day. Specialists that work as 'SR&ED consultants are experts in preparing your claim and in Canada your SRED claim can be prepared at your cost - and you keep all the proceeds of the government grant, or alternatively, your claim can be done on a contingency basis, at no cost to yourself, and the consultant usually keeps anywhere from 10-30% of the total refund received.

However most Canadian business owners and their SRED consultants do not know that your claim can be financing, either during the preparation of your claim, (yes, before your file, if you qualify!) or immediately on filing of your claim.

Generally with this type of financing you receive immediately approximately 70% of the value of your claim. The other 30% still comes back you of course, but its simply a bit of a buffer to cover financing costs and any risk that a portion of the claim will be disallowed or clawed back.

When we think in terms of specialty financing we can categorically state that SRED financing is specialty financing in Canada. We urge clients to locate a business financing advisor who has credibility, experience and background in this area.

The SRED financing process is not as complicated as you seem if you are well prepared and have access to good assistance. Its as simply as completing a basic business financing application, ensuring proper back up is in place and valid. That includes info on your company, the SRED claim itself, your previous SRED claims if you have filed previously etc.

The reality is that SRED financing can be completed within 2-3 weeks of starting the process. The beauty of this type of financing is that no payments are made on the SRED loan. In effect you can say that you have factored or discounted the SRED claim. You are simply waiting for your cheque from Ottawa, and are making use of the working capital and cash flow now. That's a solid interim financing strategy for many firms, and that cash can be used for reduction of payables, investments in new equipment, additional staff, etc. The bottom line = any general worthwhile corporate purpose.

In summary, of course ensure you are taking advantage of Canada's Sr&Ed program. Once that is the case you have the option of financing your claim, allowing you to maximize the true benefits of the program, i.e. the recovery of your R&D expenses in the most time efficient manner possible. That's 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



















Article Source: http://EzineArticles.com/expert/Stan_Prokop/432698


Article Source: http://EzineArticles.com/4303816

Finance Your Sred Claim Now . Take Advantage Of Your Grant Today

Tweet



SR&ED financing - A Solid Cash Flow Strategy !


Information on how Canadian firms utilizing the SR&ED program can finance their sred claim. Cash flowing your sr&ed refund is a solid source of working capital and cash flow for companies committing r&d capital

Your ability to finance your sred claim (aka ‘sr&ed claim) simply signifies the cash flowing of your non repayable government grant. We think that anytime you can hasten cash from the government and turn that into immediate cash flow and working capital, well... that is a good thing.

SRED grants, (sr&Ed grants) are of course the funds you received from Canada Revenue Agency based on the filing of your Scientific Research and Experimental Development (SR&ED) claim. These funds have never been more generous and many Canadian business owners and financial managers are not aware that the program even exists, let alone their ability to partake in the billions of dollars of non repayable grants issued by this department within CRA Canada. Essentially it is the largest support for research in Canada. Many clients are always asking us if there are ‘government grants and loans ‘. We are of the opinion that the two best programs in Canada to finance your firm are the federal BIL/CSBF loan and of course the SRED program.

Your firm ability to generate a claim immediately turns into a non repayable cash grant. Timing is everything, and you have the ability to finance that claim if you want to monetize those funds and get them working inside your firm. For many early stage and start up firms the ability to finance their sred claim is often the largest receivable the firm has that year. And the beauty of the program is of course that as along as your firm is a private corporation you can partake in these funds.

As companies, and even as consumers we generally use an ‘expert ‘to prepare our taxes and file them. It is certainly no different with SRED and we recommend that you use a sr&Ed consultant to ensure your claim is prepared properly. Naturally using their own expertise, or the governments self assessment tool you want to be sure you are eligible for the grant, given that it takes time to prepare and file the claim.

Naturally after filing a professionally prepared claim you are of course entitled to wait for you cheque – that timeframe can be anywhere from a couple of months to potentially close to a year depending on some key factors as your first time filing, and the due diligence that SRED employees do on the technical and financial aspects of your claim .

So you are eligible for Sr&Ed. You have filed a claim. You have been made aware you can finance the claim, but you are not sure how. In general the banks in Canada don’t finance these sorts of claims – that’s a general statement, but 99% of the time we are pretty sure we are correct in making that comment. Therefore it is strongly recommended you contact a business financing advisor who specializes in sred finance. At that point it’s a relatively simply process, and we encourage clients to view it as they would any business financing, from a lease to a loan arrangement. There is standard application information, and the whole process, up to an including funding, can be completed in a manner of weeks.

As a general rule it makes sense to finance claims that are over 250k in size, but quite frankly smaller claims can also be financed. There is no challenge to the amount of financing re the size of a sred filing – Claims well in excess of a million dollars can be easily financed.

The key advantage of financing a claim is that you are not undertaking any debt; you are just discounting a receivable that you have – that receivable being the sred claim itself. The sr&ed filing itself is the actual collateral for the financing – and if you want more good news then you should be aware you don’t makes payments on a sred claim finance. The funds advanced are netted out from your final chq from the government. Usually sred claims are financed at 70% of their filed value that leaves a buffer in case part of the claim is downsized when approved.

Cash flow is king, if you have a sred claim be aware that claim is financeable , and your ability to get those fund working again usually puts you in a more competitive stance within your industry , and allows those funds to be used for further research or any general working capital purpose . Speak to a trusted, credible and experienced advisor in this area to ensure you are aware of the benefits of sr&Ed finance – claim those funds!

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 Funding And Financing Basics

Tweet





The Only Sr&ed Funding Guide You Need For Your Sred Loan on Your R&D Tax credit


Information on sr&ed financing in Canada . A sred loan monetizes your r&d tax credit for your cash flow purposes

Although Canada’s Sr&Ed program seems to be going some changes in terms of application and adjudication of your claim the good news is that the ability to finance your SRED (SR&ED) claim is as straightforward as ever. Let’s explore some key basics around what you need to know to finance your claim and get a head start advantage on your ability to reclaim sred funds.

Put very simply, if you have filed a sred claim there are a number of reasons to consider financing that claim for immediate cash. It’s a simple case of staying ahead of the game and monetizing your R&D tax credit now to accelerate working capital.

There is no industry that is unable to finance a sred claim – the program of course covers a wide variety of industries in Canada – many claims we see from clients are in the software and technology area, but virtually every industry has the ability to capture a sred government grant that is of course, non – repayable.

We should state however that sred claims that are prepared by proper technical advisors tend to be easier and quicker to finance – that is simply because with that experience and credibility comes the assurance to your lender that your claim has a high probability of being approved in entirety or for the most part .

That brings us to a critical point around the financing of the sred claim, which is often our client’s most typical starting question – ‘Our Company has a sred claim – how much can we get for it today?” SRED loans typically start out at 70% ltv. Ltv is an acronym of course in finance for loan to value, so we are simply stating that you can immediately borrow and receive in the range of 70% for your sred claim. Naturally that 30% gap still remains with your firm to its credit, it’s simply that you don’t receive sred loans for that remaining 30% which acts as a solid buffer to cover the probability that your claim might be adjusted by Canada Revenue Agency – it also covers off the financing costs.

A popular misconception around sred financing is that it is a loan – that is not the case in the technical manner that we as business owners view loans. A term loan, or short term loan for that matter adds debt to your balance sheet, and you make payments on a loan of course. SR&ED financing of your R&D tax credit is simply the monetizing of your sred claim, with the claim as collateral – so your firm is incurring no additional debt. Also, the beauty of a properly constructed sred financing is that no payments are made for the duration of the financing – The financing costs are netted out against your final cheque that you receive from Ottawa and your province. (SRED funds usually have two components, the federal and the provincial portion.)

Sr&Ed financing is efficient and can happen very quickly – as a business owner you should view the entire process in the same manner as you would any other application for financing – example – leasing some equipment, etc.

The key aspects of a sred application are a copy of your sred claim, a copy of your tax filing that you of course made at the same time as you filed you R&D tax credit, and typical information on your company, i.e. your financial statements . If for some reason you have made the decision to finance that claim after you have had your technical audit you are eligible for even a greater advance that our aforementioned 70%- however typically clients come to us when they have just filed a claim, or in some cases, are in the process of filing.

Financing of your sred loan takes a couple of weeks from start to finish, in our experience. So your strategy to finance your claim and receive cash for it can often be enhanced by planning early, which is always a good thing in any aspect of business finance.

Speak to a trusted, credible, and experienced financial advisor in SR&ED TAX credit finance to determine how easy it is to monetize that claim and turn that non repayable government grant into cash flow that will accelerate your growth and profits.

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