SRED Financing In Canada : The Power of SR&ED Loans

 

YOU ARE LOOKING FOR  SR&ED FINANCING FOR YOUR CANADA SRED CLAIM

The Insider’s Roadmap to SR&ED Financing Success in Canada

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Funding R&D: The Essential Guide to SR&ED Financing Your SR&ED Claim | 7 Park Avenue Financial

 

 

Revolutionize Your R&D: Smart SR&ED Financing Strategies

 

 

 

Introduction to SR&ED Financing 

 

In the realm of Canadian business innovation, the Scientific Research and Experimental Development (SR&ED) program stands as a cornerstone. It offers a pathway for businesses to engage in research and development with financial support from the government. Understanding the nuances of this program is crucial for any business looking to leverage innovation for growth.

SR&ED financing in Canada is revolutionizing how businesses approach and fund their research and development, unlocking unprecedented opportunities for innovation

 

 

Understanding SR&ED Claims 

 

SR&ED claims are designed for businesses that invest in R&D activities. These claims allow companies to receive tax credits or refunds, fostering a culture of innovation. The eligibility criteria for SR&ED claims are specific, focusing on projects that advance scientific knowledge or technology.

 

 

 

The Benefits of Financing SR&ED Claims 

 

 

Financing SR&ED claims can provide immediate cash flow, enabling businesses to reinvest in further R&D and operational activities. This approach helps businesses maintain momentum in their innovation endeavors without waiting for tax credit processing.

 

 

Navigating the SR&ED Financing Process

 

 

The process of financing an SR&ED claim involves several steps, starting from the identification of eligible R&D activities to the application for financing. It's essential to understand each stage to maximize the benefits. Learn More

  

 

SR&ED Tax Credits: Maximizing Your Benefit  

 

 

To make the most of SR&ED tax credits, businesses need to accurately document their R&D activities and expenditures. Proper documentation ensures that companies can claim the maximum amount eligible under the program.

 

 

  

  

Key Considerations for SR&ED Claim Financing    

 

When seeking financing for SR&ED claims, it's crucial to consider factors like the credibility of the financier, the terms of financing, and the alignment of the financing with your business's cash flow needs. Explore Options

 

 

Innovative Funding Solutions for SR&ED

 

There are various innovative funding options available for SR&ED claims, including traditional bank loans, specialized SR&ED financing, and venture capital. Each option has its own set of benefits and considerations. Discover More

 

 

SR&ED Investment Tax Credit: A Closer Look

 

 

The SR&ED Investment Tax Credit is a significant aspect of the SR&ED program, offering a percentage of qualified expenditures as a tax credit to businesses. Understanding how to maximize this credit is key to effective SR&ED financing.

 

 

 Expertise in SR&ED Financing: 7 Park Avenue Financial 

 

7 Park Avenue Financial brings decades of experience and expertise in SR&ED financing. Our team is dedicated to helping businesses navigate the complexities of SR&ED claims and financing, ensuring the best possible outcomes. Learn About Our Expertise

 

 Choosing the Right SR&ED Financing Partner 

 

Selecting the right financing partner for your SR&ED claim is crucial. Look for a partner with a deep understanding of the SR&ED program and a track record of successful financing arrangements. Find the Right Partner

 

SR&ED Financing: The Path to Business Growth

 

SR&ED financing is more than just a financial tool; it's a pathway to sustainable business growth. By providing the necessary funds for R&D activities, SR&ED financing helps businesses stay at the forefront of innovation.

 

1. Alternative Lenders Over Traditional Banks: While traditional banks are the go-to for many, alternative lenders can offer more flexible, tailored financing solutions for SR&ED claims. These lenders might provide quicker approvals and more personalized service. Traditional banking institutions are increasingly irrelevant in the realm of SR&ED financing, as their rigid structures and lack of flexibility hinder the dynamic needs of innovative Canadian businesses

2. Leveraging SR&ED Financing for Market Expansion: Beyond merely funding R&D, the cash inflow from SR&ED financing can be strategically used for market expansion activities, thereby turning a tax credit into a tool for broader business growth.

3. SR&ED Claims as a Strategic Planning Tool: Businesses can use the anticipation of SR&ED claim financing not just as a reimbursement mechanism but as a core part of their annual strategic and financial planning. This proactive approach can influence R&D direction and intensity, aligning innovation efforts closely with financial planning and business goals.

 

 

  

 

Key Takeaways  

 

 

1. SR&ED Canadian government initiative offering tax incentives for businesses conducting research and development. Understanding its scope and eligibility criteria is crucial.

2. Financing Benefits: SR&ED financing provides immediate cash flow, enabling continuous investment in innovation without waiting for tax credit reimbursements.

3. Claim Process: Recognizing eligible R&D activities and accurately documenting expenses are pivotal for successful SR&ED claims.

4. Choosing a Financing Partner: Selecting a knowledgeable and experienced financier in SR&ED claims is vital for maximizing financial benefits and streamlining the process.

 

 Conclusion: Empowering Your Business Through SR&ED Financing 

 

SR&ED financing is a vital component in the ecosystem of Canadian business innovation.  Call 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can assist you with the intricacies of SR&ED financing, empowering them to achieve their growth and innovation objectives.

 

Start your SR&ED financing journey with us today and unlock the potential of your business. Begin Your Journey

 

FAQ

 

 

What is SR&ED financing in Canada?

SR&ED financing refers to specific funding solutions that leverage tax credits from the Scientific Research and Experimental Development program, aiding Canadian businesses in supporting their research and development activities.







How does SR&ED financing benefit businesses?

It provides immediate cash flow, enabling companies to reinvest in R&D and operational activities, fostering continuous innovation and business growth.




Who is eligible for SR&ED financing?

Canadian businesses engaging in qualifying research and development activities can apply. Eligibility depends on meeting specific criteria set by the SR&ED program.




What types of projects qualify for SR&ED financing?

Projects that contribute to technological advancement, resolve scientific uncertainties, and involve systematic investigation are typically eligible for SR&ED financing.



How does one apply for SR&ED financing?

Applying involves documenting eligible R&D activities, submitting a claim for SR&ED tax credits, and seeking financing based on anticipated or approved credits.






Can startups access SR&ED financing?

Yes, startups who are Canadian controlled private corporations engaged in qualifying R&D scientific research activities around scientific or technological uncertainty can access SR&ED financing, provided they meet the program's criteria.






Are there risks involved in SR&ED financing?

As with any financing, risks can include the variability of credit approval and the potential of not fully capitalizing on the credit if not well-managed.



How long does it take to receive SR&ED financing?

The timeline varies, depending on the processing of the SR&ED claim and the specifics of the financing agreement.



Can SR&ED financing be combined with other funding?

SR&ED financing can often be integrated with other forms of business funding, enhancing overall financial strategy.



Is there a maximum amount for SR&ED financing?

The maximum financing amount for sr ed tax credits typically depends on the size of the SR&ED claim and the specific terms set by the financier.

Does the industry of a business affect SR&ED financing eligibility?

No, the industry is not a primary factor in a sr ed refund claim. Eligibility is based on the nature of the R&D activities around scientific or technological advancement rather than the industry.



Are there specific expenses that qualify for SR&ED financing?

Eligible expenses typically include salaries, materials, overhead, and contract costs directly related to eligible expenditures around R&D activities.



Can SR&ED financing impact a company’s tax situation?

Yes, it affects tax planning since SR&ED tax credits can alter a company’s tax liability and income tax payable, making strategic financial planning essential.




 

Your Most Complete Guide to SR&ED Financing & SR&ED Loan Success In Canada

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SR&ED refundable tax credits and financing r&d   are in the news a lot these days. Things seem to be always changing, sometimes in a big way, sometimes less. The one constant? SR&ED Financing! It's always there - always available. Let's dig in.

 What is The SRED CREDIT?

 

Sometimes called ' Shred  Credits ' they are one of Canada's most accessible, popular, and widely used incentive programs under the auspices of Canada Revenue Agency, allowing you to claim for either a cash grant or in some cases a deduction against income taxes owing. R&D capital investments use up cash flow resources, so collateralizing your sr&ed claim makes a lot of sense when other traditional  sources of financing are not available.

Corporations that are in need of liquidity cannot afford to wait until the end of the fiscal year to receive payment of refundable tax credits. For this reason, lenders offer sred funding, an advance (or loan) to eligible corporations, while using the future receipt of the SR&ED refundable tax credits as collateral.

 

In the majority of cases, you are eligible for amounts in the 35-40% range of your total expenditures. The amount of that refund can go over 5O% when your Sred Consultant and accountant, typically working in combination, take advantage of both the federal and provincial parts of the program. 

 

At 7 Park Avenue Financial we can't overemphasize the role of ensuring your have an experienced and reputable sr&ed consultant preparing your claim . Their track records and reputations are invaluable both in the financing process as well as the CRA audit process for sred.

The formal name of the program is ' Scientific Research and Experimental Development ' , hence ' SR&ED ' ! It is one of the most popular government programs vie encouraging firms to conduct r&d in Canada, as well as providing refundable tax credits for those investments made by your firm.

 

Why a Sred  Loan ? SR&ED Debt Finance

 

 

Simply because its a method of allowing you to use your refund owing, which is essentially an account receivable, as a source of operating cash in the same manner in which any company would finance their receivables via either a bank or a commercial a/r financing firm. It's a good example of  ' specialty financing '. Note that this does not involve government grants, or grant financing - that's a whole different category of accessing funding from the government.

 Essentially you are unlocking the value of your tax credit, which is, in fact, a real asset on your balance sheet, although many companies we have worked with sometimes do not book that as a receivable. 

 

Companies using the Sred program tend to always be looking for business growth capital. Most but not all are early stage companies looking to commercialize their products and services. Just the ability to finance their r&d prior to their claim filing is appealing to firms who are always looking to generate cash. Many firms are in new or emerging sectors such as digital medial , environment, biotech, etc but firms in every industry utilize SR&ED. Accessing traditional financing is very challenging for many of the firms involved in SRED, and going the equity raise route is both time consuming and even moreso, costly!

 

 Claimants under the program may be surprised to know that if your firm has ongoing multi-year activity in research you can set up a Sred Line Of Credit, allowing you to accrue and then finance ongoing work. Here is where a track record in' Shred ', as well as a good consultant, is important.  Also, your claim can be financed before filing with the proper level of due diligence around claim content.

 

 

 We can make the case that SR&ED finance is really  SRED factoring, namely the factoring of your sred receivable. And as we have mentioned elsewhere, owners should consider sred accrual financing allowing you to accelerate cash flow.

The challenge around receivables of course is ' waiting for payment '! Historically the timing around SRED REFUNDS has been a major point of discussion and is one of the reasons why a  SR&ED FINANCING COMPANY is often utilized to monetize your tax credit. Depending on the size of your claim, the technical aspects around it a firm can easily wait for  many months to receive their refund.

 

 

 Another issue around the timing of claims is that your claim is filed by your accountant and Sr&ed consultant, typically working together, at the time of your year-end tax filing. You can see that it could add a further delay to payment by the government to your firm. 

 

 

KEY POINT: A  SRED CLAIM  can often be financed and funded in just a few weeks if you are working with expert help and someone who has a track record of financing success in the tax credit area.

 

Although many business people use the term ' loan ' when it comes to this type of debt facility,  SR&ED financing brings no debt to the balance sheet, you are just monetizing your claim as a manner of advanced funding.

 Utilizing SRED TAX CREDITS is simply an additional source of funding for many companies, many of which are new, emerging, and even startups. Although many firms are technology companies almost every industry is eligible for SRED CREDITS based on their commitment to r&d.  It's all about growing their business.

 

 New clients at 7 Park Avenue Financial always want to know if they are in fact eligible for SRED CREDITS.  If your business is what is known as  CCPC,  essentially meaning a private, not public company and you are doing qualified experimental research to develop your products you are eligible.

 

Industry statistics around SR&ED tell us that in the last 7 years payouts on SR&ED claims have reduced by over 5 Billion dollars - suffice to say billions are still being paid on thousands of current claims. The government seems to be asking anyone with interest to provide guidance on the future of the program.  Canada Revenue Agency provides great information on the CRA website on both the qualifications around your claim and overall eligibility. 

 

All of that  information essentially comes down to 3 issues - Is your firm investing in r&d capital to advance technologically, are their uncertainties in your research, and has the research become a process whereby technical challenges are overcome

Talk about uncertainty! Business owners hate uncertainty. Who doesn’t? The one constant in SRED? Cash Flowing Your Claim!


SR & ED (SR ED) factoring is a viable consideration for any Canadian company that files SR ED claims and is looking for additional working capital. Not all Canadian business owners and financial managers are aware that SR ED claims can be monetized (financed!).


For an overview of SR ED financing, it’s important for us to validate some of the basics -


-Have you filed an SR ED CLAIM?


-How much was the dollar amount of the claim?


-Who prepared the claim?


-What amount of cash or working capital do you need in conjunction with the claim filed?


If you are looking for cash flow with respect to your Canadian SR ED claim you either have working capital financing in place now with your bank or finance firm (a factoring company perhaps) or your firm is self-financing and you are looking for the SR ED to supplement additional cash flow. Risk capital /equity capital and Canadian venture capital is challenging to raise in Canada . Financing r&d makes a lot of sense.


Canadian business owners and financial managers are aware that when they finance their receivables and inventory these 'current assets' are 'margined'. By margining we of course mean the amount of funds you can borrow against these assets.


In SR ED financing you are generally financed 70% of your claim, and that is the combined total of the Federal and Provincial claim.


So if you have filed an SR ED claim, of say, for example, $350,000.00 you are eligible for 70% of that amount, or $245,000.00


Funds can be advanced as soon as you have filed the claim, but not before. Naturally, it is somewhat important to ensure your claim was filed by a qualified party - usually an accounting firm or consultant. It's these consultants that are in the field daily on the program, wresting with all sorts of changes around Form 4088! ... Defining and backing up your project.


SR ED financing is outside your normal current financing arrangements. The SR ED is collateralized separately - it is, in essence, a short term working capital loan that is repaid when the government sends you your cheque. Most Canadian business owners do not want to wait, 3, 6, 12 months or more for a cheque for a substantial amount that is in effect a non-repayable grant from the government. The Canadian government continues to pour well in excess of a billion dollars into the program, and if your firm qualifies for an SR ED claim -


1. Why wouldn’t you use the program?

2. Why wouldn’t you accelerate the cash flow from the grant by financing your SR ED claim?


SR ED financing is a boutique small industry in Canada - business owners are cautioned to work with a qualified, credible, and experience party who will ensure they are maximizing financing capabilities under the program. Naturally, any firm can wait for its refund , but using the cash from financing your claim allows you to move on to new opportunities in your business, including even more investments in r&d. 

 

Typically companies investing in research are in highly competitive industries, and rather than considering external equity this type of financing is simply one way of increasing value and time to market without the dilution of additional ownership to your company. Utilizing internal cash resources in the early stage of growth allows you to increase the value of your firm at a later point.

Companies financing their r&d claims use funds for a variety of reasons - that might include further research, general working capital purposes, marketing, new employee hires, or geographical expansion.

 

How Does The SR&ED Financing Application Process Work

 

 Business owners and their financial mgr's should view the financing process as the most simple of loan applications. A minimum amount of the claim is typically $100,000.00. With a client's full cooperation we have had clients financing in plays in a week or two, sometimes sooner. Typical loan amounts are in the 70% range based on your total claim. Simple business application information applies, ie years in business, articles of incorporation, etc,

No payments are made for the duration of the financing! The loan interest accrues and is deducted from the final payment by the government of your claim . Your current lender security stays in place, and significantly less emphasis is paid to typical bank focus on personal guarantees, net worth of principals, etc. A track record in previous SR&ED claims is helpful, but not necessary, and firm time claimants may apply to fund their claims.

It should not come as a surprise that certain other refundable tax credit programs can also be financed, they include:

 

 

Digital Multimedia Tax Credits

E-Business Development

Multimedia Gaming

Film Tax Credits in Many Canadian Provinces

In summary, Canadian firms that are eligible to file an SR ED claim should do so. What firm would not want to receive a cash non-repayable cheque from Ottawa! If you can wait for the funding, and don’t need additional cash flow, great. That's why sred tax credit loans make sense.

 

If you wish to arrange interim financing for your claim enlist the services of a trusted and credible SR ED financier. In a matter of a couple of weeks, your working capital and cash flow will be augmented vis a vis your SR ED financing. SR ED Financing and factoring - a great Canadian alternative 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

Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com

Click Here For 7 PARK AVENUE FINANCIAL website !



7 Park Avenue Financial provides value-added financing consultation for small and medium-sized businesses in the areas of cash flow, working capital, and debt financing.



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. He is an experienced

business financing consultant

.

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 financing 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
7 Park Avenue Financial/Copyright/2020

Financing Tax Pigs ! ? Your SRED ( SR&ED Tax Credits ) Tax Credit Claims Are Still 100% Financeable!

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SR&ED Bridge Loans Still Make Sense And Here’s Why

Information on the financing of the sred tax credit in Canada. SR&ED claims for your tax credits are still 100% financeable – here is why and how!

Ouch! Make that a double ouch! Tax pigs? That was the assessment of one of Canada's leading economics and business professors when it came to Canadian firms who line up (we assume he meant at the trough?!?!) to get their fare share of what he called ' tax preferences' in Canada.



The thrust of the article, which appeared in one of the two leading business newspapers in Canada, was that Canada is losing billions, yes that’s billions with a capital B... to a long list of tax programs from which it derives little benefit.



Those programs include labour funds, the Atlantic tax credit , film tax credits, accelerated deprecation credits ( that’s a new one for us), flow through share credits, GST preferences, and finally SRED ( SR&ED ) tax credit claims .



We won't weigh in on the authors premise, which was pretty well to put these programs on the ' chopping block ‘in order to get government spending in line.



We thought that perhaps we should seek an honest politician for some clarity on the issue , but in the interest of time vis a vis the ' honest politician' oxymoron our point is simply that if certain government tax credit programs such as SRED and film exist , and you qualify and file for them .. Then you can finance them.



The financing of these credits brings valuable cash flow and working capital into the thousands of firms who do in fact qualify for the program.



Let's look at the SRED program. This is the Scientific Research and Experimental Development Tax Credit Program which is a federal incentive. It's administered by both CRA and your respective province and has encouraged over the years thousands of Canadian companies to work on r&d. Private , ie non public firms can earn approximately up to 35% on the first 3 Million they spend on projects that qualify, and 20% on amount in excess.



Canadian business currently uses this SRED credit for claims on wages, material, equipment, and certain overhead allocations.



The question has therefore become, is all this SR&ED tax credit work legitimate, as almost 4 Billion per annum is spent annually in non refundable tax credits for Canadian firms. Over 24,000 firms have applied annually for the credits.



Upcoming federal budgets will soon tell the tale of where SRED is going in Canada.



The bottom line is that if you have a SRED (SR&ED) tax credit there is financing available on the credit. Your credit is monetized either at time of filing, or in some cases in an accrual financing plan as you spend. Claims typically are financed at 70% of SRED value, the other 30% is in essence a buffer.



TAX Credit financing can typically be completed in 14-21 days, with the essential collateral behind the financing of course being the SRED itself



Canadian firms who use the program can claim up tot the last two years of R&D, and the claims are typically prepared by professionals simply known as ' SRED CONSULTANTS.



So, is your firm a tax pig? Seems a bit harsh, and we're still looking for that honest politician find out where SRED tax credit is going in Canada. In the meantime, if you have a claim, and want to monetize it consider talking to a trusted, credible and experienced Canadian business financing advisor for funding 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 Or SRED ? – Call It What You Want But Take Advantage of SRED Funding Or Factoring!

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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 In Canada : The Power Of Sr&ed Loans

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SR&ED Financing Loans In Canada : It’s Not Brain Surgery!

OVERVIEW – Information on financing SR&ED claims in Canada . SR ED loans monetize your refund quickly and efficiently and allow business owners the luxury of not having to wait for their refund / cash

SRED Financing in Canada, eliminates, in simple terms, the waiting for that refundable tax credit chq, We couldn’t count the worries or challenges you have around your competition in Canadian business.


One way in which Canadian business stays ahead of the challenge is via the Canada SRED grant program. Sred claims deliver billions, (that's not a typo - it really is billions) of dollars of non repayable grant funds to firms such as yours. Let's dig in.


How do SR&ED loans assist your firm to stay even more competitive? We tell clients that's because it accelerates the cash flow and working capital that your firm has coming from its R&D claim. Your ability to ' unlock ' sred funds is simply a cash flow accelerator. Clients often ask what the required uses for those funds are if in fact you do choose to finance your sred claim.


What do business owners & financial mgrs utilize the R&D capital refund for? The reality is that the funds can be used for any general corporate purpose - so that includes of course general working capital and cash flow, the purchase or down payment of additional new equipment and technology, or, at its most basic, retirement of short term or long term debt on your balance sheet . Even better? Investing in next year’s research to stay ahead of those competitors!

Your ability to quantify and demonstrate your business processes and advancements can result in hundreds of thousands of dollars of non repayable sred funds under the combined federal and provincial program. Those SR ED consultants that typically prepare claims are experts in that - they prepare the vast majority of claims in Canada.

There isn't a business owner in Canada today, certainly that we have met, that doesn't have some issues and problems with the role of government in business. Want a method of striking back?! Take advantage of sred and sred financing. Sred claims under Canada sred legislation are your encouragement to recover 30-40%, even more in your funds spent in the previous fiscal year.


We advise clients that the process around the financed of a sr&ed claim is much defined. In fact in the current business environment, based on some new rules for claimants, it’s even more defined.


Claims are most successfully financed when they are generated by a proper party - our aforementioned SR ED consultants. Their proven ability to craft and present a claim under new guidelines from the government is key to being able to maximize your claim.
Maximizing you claim maximizes financing, simply because under sred financing a typical advance is 70% of your claim, so the size of your overall total claim determines the financed amount, as in our example of the typical 70%.


It's common knowledge in the SRED industry that a huge majority of companies eligible to claim a sred grant don't do it. We have heard all the excuses, and we won't weigh in on them now, but they typically include - - ' we haven't heard of the program .... Is there an audit involved ... isn't expensive to prepare a claim, we don't have enough time, '''... etc, etc! We would rather preach to the converted.


So if you are filing sred Canada claims and want to accelerate cash flow immediately then consider monetizing your claim. It's a very basic process, via an application, providing back up on you sred, and being agreeable to collateralizing the claim via a basic documented process.


Seek out and speak to a SR&ED tax financing expert to ensure you can easily and effectively enjoy the benefits of sred financing via a cash flow and working capital financing of the claim.


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

Is It Smart To Finance Your SR&ED TAX CREDIT Via a SRED Loan?

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Information on SR&ED TAX CREDIT financing in Canada. Why business owners and financial managers might consider a SRED loan as additional working capital and cash flow. Key tips on SR&ED financing

SRED financing of your SR&ED tax credit is somewhat of a boutique finance industry in Canada. It is very rare that your bank will finance the claim. We certainly don't agree with that, because in effect it is an account receivable, and they do finance receivables, don't they??! Anyway, your firm will have to have a strong borrowing relationship with a bank to finance your claim. The reality is that this type of financing is best and more quickly achieving via a SRED financing specialist.

Rates for SRED financing vary, and factors that affect the rate tend to be size of claim, your company's current financial position ( many SRED claimants are early stage, pre revenue, etc ), as well as the perceived quality of your claim.

A SRED loan is not debt per se, that's important to understand, you are simply monetizing, or ' cash flowing ' one of your receivables, in this case the SRED. SRED loans are structured as no payment loans and the final financing charges are simply deducted from the final cheque you receive from our good friends in Ottawa.

SRED financings can be processed, and funded in as little as two weeks - very standard application paperwork is involved, and the main collateral is or courses the SRED itself.

Here's some final tips we promised - have your SRED prepared by someone who knows what they are doing, SRED consultants are the best in this area as they are specialized. Count on receiving at least a 70% advance on your claim. Also, did you know that under certain conditions your SRED can be financed prior to filing?

We've e shared some tips and procedures that will allow you to consider financing your claim. If additional cash flow and working capital are important considerations speak to a trusted, credible, and experience business financing advisor to validate your SRED loan options.


Stan Prokop - founder of 7 Park Avenue Financial –

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing. Info & Contact Details :

http://www.7parkavenuefinancial.com



7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Office = 905 829 2653

Email = sprokop@7parkavenuefinancial.com

' Canadian Business Financing with the intelligent use of experience '

ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.


Stan Prokop










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

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