The Only SR&ED Funding Guide You Need For Your SRED Loan on Your R&D Tax Credit

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Although Canada's Sr&Ed program seems to be going thru 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

















Article Source: http://EzineArticles.com/4989373



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

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







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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

How To Finance Your Business With a SR&ED SRED Tax Credit Secured Loan

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Cash Flow your r&d Tax Credit Today !

Information on accessing a sr&ed tax credit loan . Sred loans accelerate the cash flow tied up in your r&d capital investment

Can you actually finance your Canadian business via the monetizing of a sred tax credit secured loan ? Absolutely, positively... maybe. We say maybe because if you don’t have a SR&ED tax credit then it is of course not possible. However, if you participate in Canada's primary R&D tax credit program then you're potentially on your way to increased cash flow and working capital.

Recent articles in the Canadian business press have criticized the need for the government to even further increase these tax credits. Typically most Canadian business owners and financial managers think that the sred tax credit applies only to manufacturing, which is the farthest thing from the truth. A recent article in the Globe and Mail , one of Canada's premier business publications, stated clearly that firms in the resource, services and technology sector also participate vigorously in the program .

If your firm in fact innovates and spends money on R&D the last thing you can be criticized for is under investing in your future. Therefore monetizing your tax credit after it is filed (it can also be cash flowed prior to filing! in certain circumstances) makes great financial sense.

Is monetizing your tax flow credit risky in any sense of the word? Our clients hardly think so, as you are simply ' cash flowing ‘, or ' discounting' your claim today , and you are not even adding debt to your balance sheet . Think of the sred credit as a current asset, in fact it’s a receivable, and you are simply collateralizing a bridge loan against your sr&Ed claim.

SR&ED tax credits are more often than not prepared by an external consultant, although some firms choose to prepare the claim itself - we suspect it's because they think that they have a better handle on the nature of the claim. The reality is however that you gain an additional ' brownie point ' - if we can call it that by having the claim prepared by a professional sred consultant. Many firms in Canada aren’t aware that these consultants will even prepare your claim on a contingency basis - so if they are prepared to take the risk of time and expense on your claim you can quite rightly assume they feel it will be approved , as professional rarely choose to work for free!.

While the Globe and Mail survey indicated that 70% of Canadian business thought the tax credits currently in place were not as generous as they thought they should be , lets be honest and cant we agree that receiving 40-50% back of every dollar you spend on r&d isn’t that bad a start! And you if can turn your spent funds into instant cash flow by monetizing your claim doesn’t that give you a leg up on your competition . We certainly think so.

Cash for research tax credits is not a complicated process. A short overview is as follows - have your claim prepared in a manner that suits the government’s current filing process. File your calim with your tax return. Seek out a trusted, credible and experience business financing advisor who will work with you to complete a SRED financing application - it is not dissimilar to any other business financing application you have ever filled out. Include your sred claim as additional back up, as it is in effect the collateral for your sred loan. Claims can be financed in two to three weeks after some basic due diligence.

Financing sred puts you in line with other firms to get your share of the 3 Billion (yes that’s billion!) dollars of non repayable cash grants. Turning your claim into a cash infusion makes great sense if you are a small to medium sized firm with need for additional working capital.

Monetizing your claim will drive cash flow which will no doubt inspire your firm to further innovation.

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

Not Considering Sr&ed Tax Credit Financing Could Be Costly

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SRED loans enhance Cash flow !

Information highlighting the benefits of SR&ED Tax Credit Financing for companies using the SRED program to enhance business growth

Canadian business owners know that the SR&ED program in Canada is a huge benefit, and an incentive to the funds that Canadian firms commit to research and development - we haven’t met one firm yet who doesn’t think it’s a great program.

But are you missing out one on aspect related to ' SRED ‘, which is that you are able to implement sred tax credit financing that in effect supercharges your non repayable tax grant . Simply speaking your ability to monetize or cash flow you sr&Ed claim remarkably enhances your overall business financing.

THE SR&ED program (Scientific Research & Experimental Development) reimburses your for your R&D expenses - you know that already. So at this point a compelling choice emerges - you have the option of waiting for your cheque from Ottawa and the Provinces (you are perhaps familiar with the saying ' the cheque is in the mail’!) or you can facilitate a SRED loan to obtain your cash today.

Many younger , emerging or start up firms that we have worked with count on the cash from their SRED grant as one of the largest receivables or cash injections they will receive at one time during the year . That’s a lot of money to most firms. Actually the government statistics show that anywhere from 2-4 Billion dollars in any year go out to firms such as yours in the form of non repayable sred grants.

So how does sred tax credit financing work? Asks clients? Is it complicated, time consuming, what else is involved? Those are all perfectly legitimate questions.

We'll provide a very basic overview of the sred tax credit financing process. First things first - you need a sred claim completed and filed. In certain circumstances financing can also be done prior to filing your claim, but for simplicity sake we will focus on your claim having been filed.

If your claim has been prepared by a sred consultant with experience and reputations that plays a great factor in your sred loan approval. As you can imagine the actual sred claim it is the collateral for the loan, so we want to ensure your calim has a very significant chance of being approved. We hate to say it but it is rare that a business owner or your accountant can prepare a proper claim, simply because as in all fields of business an expert is preferred.

For the actual financing of the claim it also doesn’t hurt to work with a sred tax credit financing expert. He of she will enhance the speed of your funding, which involves simply a basic standard business financing application as well as review of the claim as we have stated. Funding is not for 100% of the claim, a very typical amount is 70%, and the other 30% is more or less to be viewed as a buffer. You can expect the whole process to take a couple weeks, which certainly isn’t bad, and if you focus on working with a sred financing expert you should have minimal delays, if any.

In summary, if the Canadian government is allocating billions to firms such as yours, clearly having cash is better than waiting for cash - consider monetizing your claim today and stay one step ahead of your competition that are still waiting for that cheque. Remember, as we said, it’s in the mail!

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

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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

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

SR&ED Tax Financing : Cash and Working Capital for your R&D Credit

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SR&ED Financing ! More Than Fascinating.. and it Works!

Information on the benefits of sr&ed tax credit financing in Canada. Monetizing your refundable r&d capital refund is a key component of cash flow success around this govt program

SR&ED Financing, (also often pronounced ' SRED Financing' ... we'll use the term interchangeably ) is a tremendous way for Canadian firms to monetize their research and development tax credit claims in order to generate additional cash flow and working capital for their business .


It is of course common sense that to finance a claim and get funds now you have to have a claim filed! Canada's sred program and absolutely one of the most positive, beneficial and proactive non repayable grant programs that exists in Canada, bar none.


Over the years we have met with many clients who, unfortunately, haven’t even heard of the program, at that same time for years they have been allocating considerable funds to research and development in manufacturing, software creation, etc. We say software for a specific example, because in many ways it is one of the most obvious areas for sred, and your ability to generate a sred loan against software development is virtually almost guaranteed. But our point simply is that any R&D you do probably can be assessed for research and experimental development - That’s where the acronym comes for Scientific Research and Experimental Development = S R E D!


Many professionals in the SRED area advise our clients that out of the several billion dollars that the government hands out now for the program that almost twice as much remains unclaimed by Canadian business simply for the fact that firms have not heard of the program . One of the key cornerstones of the program is the term ' uncertainty ' - if your firm is working on products, processes etc and is unsure of the final result , and funds are expended against that research then clearly that’s SRED !


Well up to this point we have talked about the program, detailed when it is available, now let’s focus on generating cash for our R&D expense.


You have two options after you have prepared a sred claim and filed it. They are not very complex options:


1. You can wait for your technical audit, financial audit and the government cheque, which will of course arrive many months down the road. If it is your first filing the process will take quite a bit longer.


2. You can finance, or ' discount' - we can even call it ' factor ' your sred to generate a sred loan for immediate working capital.


SRED Loans can be generated immediately after the filing of your claim. Many of our clients actually start the financing process earlier, and the reality is that funds could be advanced exactly at the time of filing. Many firms are very surprised to hear that in certain circumstances you are actually eligible to receive funds during the year, prior to filing - We have termed this process as ' accrual sred financing ‘. A few more criteria are attached to this process, but isn’t it a great idea to know that your R&D could be funded along the way as you dispense your own capital for the projects.


'Whats involved in a SR&ED financing'? Clients ask. To keep things simply we simply advise that they should view a sred financing in the same manner they view and business financing or working capital financing application. It’s a clear defined process which is as follows:


- Prepare a SRED claim (more often than not with the help of an external consultant)

- File the Claim

- Complete a business financing application


It's as simple as that. Typical back up documentation and due diligence that you would associate with any financing of your firm applies.


Oh, and a final question we always get - How much can I get and how do payments work. The good news is typically there are no payments made, you get usually around 70% of the claim value on approval, and the balance could be called a holdback or buffer. When your cheque is processed by the government and the grant is mailed to you the additional 30% is of course released, less the financing charges.


Consider monetizing your SR&ED claim for valuable cash flow and working capital generation.

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