SR&ED Financing : The Doctor Will See You Now!

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SR&ED Financing ? Why ? Immediate Cash Flow For Your R&D Capital Recovery Refund Claim

Information on SR&ED financing in Canada. Understanding how your SR ED refund can be monetized and what the benefits are is key to maximizing your r&d capital invesment

SR&ED financing is an immediate financing strategy to convert your filed Canadian SR ED claim into working capital and cash flow for your business.

If your company needs additional cash flow the SR ED financing strategy is a great source of financing and working capital of an ' alternative' nature. Naturally Canadian business owners and financial managers can wait up to 18 months (sometimes longer?) for your non repayable SR ED refund, but if you need the capital you can access those funds now.

SR ED financing is absolutely a boutique, somewhat unknown type of financing in Canada. We recommend that you work with a trusted SR ED advisor who can both maximize your claim (usually 70% of the total value of your claim) and assist you in ensuring the claim can be financed in a relatively short period of time. In claims for our customers that process usually takes 2-3 weeks with your full co operation of course.

Almost everyone agrees that the SR ED grant, which, as noted, is non - repayable! is one of the best government assistance programs in Canada . In our firms opinion both the SR ED grant and the Canadian governments CSBF loan program are the two most clear and viable financing assistance strategies for Canadian businesses.

When we meet with customers to discuss their cash flow and working capital challenges customers always ask us what SR ED financing funds can be used for - the simple answer is any general corporate purpose. We also point out that your claim, in order to be financed, must demonstrate that you have no CRA (the old 'Revenue Canada ') arrears for any government super priorities such as source deductions, GST arrears, etc. We would point out thought that although your claim might not be able to be financed with those arrears in place that you still should file your claim for funding as the claim will reduce or eliminate your arrears, depending on how much is owing to CRA and the value of your filing.

In certain cases we work with customers to pay any of those government arrears out of the financing of the claim - that’s a good thing!

Business that finance SR ED claims clearly understand the value of the program - it gets your firm a significant refund in any research your firm does in products, processes, software, etc .

It is our understanding that over the last couple years the government has sent out cheques for 1.6 Billion dollars in funds for SR ED claims, so:

1. Why wouldn’t your firm consider filing a claim for your funding?

2. Why wouldn’t you consider a SR ED financing strategy for immediate funding of that claim?!

When we meet with customers and ask them what they will use the proceeds of the SR ED financing for they indicate that it will be for very basic working capital requirements - suppliers, payroll, further investment into their R&D processes, purchases of equipment, etc.

SR ED financing is typically in the 70% LTV range, by l t v we mean of course loan to value. That simply means that for every 100.00 of Sr Ed calim you can immediately access, on approval, 70.00 of your total claim. The balance is remitted to our firm once Ottawa and Ontario approve their respective parts of the claim. Naturally there are the financing costs which are typically taken out of that last 30% that is due your firm.

There is no real maximum on the amount of SR ED claim that you can finance, in our own experience claims are generally under one million dollars, but that is not a hard and fast rule.

We referenced working with a good Sr Ed financing advisor who can both maximize your cash out of the claim financing, and steer you through the process as well. In certain instances your bank might have a general security agreement on the claim, (even though they are not financing it?!) so a release is required from the bank, which is generally easy to obtain once we explain what we are trying to achieve.

Many firms ask us what the general criteria are for Sr Ed financing approval. It is essentially a standard business application process; however we clearly note that the emphasis is on the amount and quality of your claim, with significantly less reliance on your balance sheet and income statement. That is because the Sr Ed financing is secured by your actual Sr Ed filing - it’s as simple as that.

Naturally it helps if your overall business outlook is generally positive, or if you are on track to recovering from any setbacks such as a financial loss, or balance sheet issue, etc

Cash flow and working capital needs? Filing SR ED’s? Then consider your Sr Ed financing options!


7 Park Avenue Financial :

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

Direct Line = 416 319 5769

Office = 905 829 2653

Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com


Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations .



' Canadian Business Financing With The Intelligent Use Of Experience '

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

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

Stan Prokop

SR ED Financing Via Sred Loans : A SR&ED Tax Credit Loan Monetization Strategy That Works

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Is Your Company Taking Advantage Of SR&ED Loan Financing? Consider This ..

OVERVIEW – Information on SRED loans in Canada. SR ED financing via a tax credit loan is the logical way to monetize your r&d capital credits for cash flow purposes

SR ED financing is the most efficient way to accelerate and monetize your investment in R&D capital. A SR&ED tax credit loan allows you to take maximum advantage of this most famous and used govt refundable tax credit. Why do SRED loans make sense for your firm then? Let's dig in.

Of course the actual ' formal ' name for the program is the Scientific Research & Experimental Development refundable tax credit .By the way , we've never been one for name calling , so whether you call it ' sred ' ' shred' or anything else for that matter only the importance of the program is key to us!

Canadian business owners and financial managers in a variety of industries have the ability to of course file sred claims, and at the same time, if they choose, they can finance their claim and generate immediate cash flow and working capital from this valuable government grant program. Again, to be clear, those funds are non repayable.

Safe to say that the only thing that prevents you from financing a claim is if you do not file a claim, so understanding the basics around a claim, as well as the characteristics that claim needs to be financed is valuable information for Canadian business owners and financial managers. The govt refunds billions of dollars every year under this program , and many owners/mgr choose to finance their claims.

Claims are filed and substantiated under the normal program guidelines. One of the misconceptions around the program is that your R&D has to be successful in nature, and that's actually NOT correct, you just have to be in a position to document what you did and how you did or tried it.

Although claims prepared by owners and management can be considered for financing, the reality is that if you are applying for sr&ed financing it makes a lot more sense to have your claim prepared by one of two parties, either your accountant , or what is known as a ' Sred Consultant '.

Claims have never been easier to file, as the govt has very much streamlined the program - but total care is needed to adhere to current filing guidelines - that's where those SRED consultants come in.

With the information we are sharing here we want to be able to ensure you understand how the quality and size of your claim affect its overall financeability. SRED claims are applied for in all sorts of amounts, we have seen clients file as low as 20,000 - 30,000$ per annum, and as high as 1.5 million dollars, and we are sure there have been higher claims.

The actual claim preparation has an effect on your claims financeability - as your goal, should you need the cash flow and working capital, is to monetize that claim into a short term sred loan - with the sred itself being the collateral for the loan.

When you choose to finance a claim the general advance is made at 70% - so let's do some rough arithmetic around a sample claim and it's financing.

We're told that in business timing is everything - As a business owner you can wait anywhere from 1-12 months to get your cheque in from the government, which is reimbursed at the federal and provincial levels. Or, if you choose to utilize those funds now under a sred loan, you can get an immediate loan of 70% of that claim.

What do clients do with their SRED Loan proceeds? Funds are typically used for working capital purposes, equipment purchases, or even more ongoing sred activity! Looking for more good news? No payments are made on your sred loan; financing costs are calculated at the back end of the claim when you receive your funds, including the previously mentioned 30% that was held back on the financing.

Furthermore, if you have successfully financed sred claims in the past you could be very eligible for sred accrual financing - which is a special program that reimburses you for your sred expenses as you go along during the year.

Traditional financing institutions such as banks and business credit unions are poorly equipped to understand and finance sred tax credits .As a result we recommend you work with a trusted and credible business financing advisor to ensure your claim can be financed quickly and with a modest amount of preparation.

A bottom line on SRED Loans? If you in fact utilize the SR&ED program consider cash flowing your claim to accelerate the monetization of your claim. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in financing your R&D capital refund.


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

A Tax Credit Loan Via SR ED Financing Maximizes Your R&D Capital Investment : SR ED Loans 101 !

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We’re Taking Questions ( And Giving Answers ) On SR&ED Tax Credit Financing !

OVERVIEW – Information on SR&ED Finance in Canada. SR ED financing via a bridge tax credit loan provides valuation cash flow / working capital . Here’s what you need to know about Sred loans!

SR ED financing may often play a key part of your overall cash flow strategy as it relates to your R&D capital investment. How does a tax credit loan work and how can your firm access SRED loans that make sense for your business? Let's dig in.

The alternative to financing your SR&ED claim isn't often an easy one - it's called ' Waiting ‘! That process can be anywhere from 6-18 months for the govt refund that's a combo of your federal and provincial SR&ED claim. It's plain to see that financing a claim is all about taking advantage of the valuable cash flow that's tied up in your claim filing/refund.

Typically Canadian chartered banks almost never finance a SR&ED claim. There are probably a few reasons why that is the banks position, one of them being that claim ultimately might not be approved/processed for refund. That of course simply strengthens the case to ensure you've got a solid SR ED consultant preparing your claim. That's key.

Note that even first time claims can be financed, although it's safe to say that firms that have filed previously clearly enhance the chances of getting their claim financed. But to our point, first time filers can finance, and many firms we have worked with are start up and pre revenue stage companies.

Why do firms consider financing their R&D refund? In general it's always about their cash flow and capital needs -in many cases the cash is actually used to continue to further research on the next years claim! Hopefully that R&D investment helps them position future success as translated into sales and profits.

Clients we talk to are also happy to hear that they can also finance claims that have not yet been filed. We can call this a form of a SR&ED credit line, allowing them to fund as they invest. That clearly shortens the waiting period given those interim advances.


Your Sred Financing is a very defined process, with the participants being your privately owned Canadian firm as the SR ED applicant, your SR ED preparer or consultant, CRA itself, and of course the finance firm as the final piece of the puzzle.

We meet with many firms that actually have qualified for SR ED cash grants for years and have not taken advantage of these funds. Unbelievably some business owners tell us they viewed the process as too time consuming, therefore they simply did not apply for the funds. In today's business environment with a total focus on cash flow, working capital, and global competitiveness we feel you can't afford to not take advantage of both the SR ED funds, as well as SR ED financing.

The basics are very simple - establish that you qualify for SR ED cash refunds, work with your accountant or an independent consult to set up a process and prepare claims on an annual basis, and, finally, unlock the cash flow in those SR Ed claims if you wish to finance the claim.

What is the actual finance process? Essentially consider your tax credit loan as a ' bridge loan ' with the actual collateral being the claim itself. In a way you're creating a special government account receivable finance strategy. Loans are typically 70% of the total value of your combined fed/prov claim. Using a 350k SR&ED claim as an example your tax credit loan would be in the 245k range. Key point: No payments are made for the duration of the loan - financing costs accrue and are paid at the end when the loan is closed.


Key steps to success in Sr Ed financing are simply:

Ensuring you qualify

Preparing a clean claim with documentation ( with your accountant or consultant) We further note that many consultants with prepare your claim on a contingency basis, therefore ensuring you have zero out of pocket expenses in claim preparation .

In our experience the financing portion of the SR ED claim process typically takes up to 2-3 weeks. Is that a long time? Well of course the alternative is to get your aforementioned 245,000$ now or wait one year for the government to send you the cheque. Hopefully we have made out point! Seek out and speak to trusted, credible and experienced Canadian business Financing Advisor with a track record of success for your answers on SRED loans that make sense for your business.



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

Are SRED ( SR&ED ) Tax Credits Are Dead ? We Hope Not! SRED Financing For Your SR ED Credit Claims Is Alive & Well !

Sweating Bullets ? SRED Loans and Financing for SR&ED Claims – Financing Today For Your Filed or Unfiled Claim!

Information on SR&ED loans in Canada. SR ED Financing via a bridge loan for your refundable tax credit is a solid way to monetize your firms investment in R&D Capital

SRED Credits ? Sweating bullets is one of our favorite expressions for some serious worrying. That surely must be the case for thousands of Canadian firms and the industry consultants who file SRED (SR&ED) claims in Canada for their non refundable tax credit monies for their R&D processes.

We're not going to weigh in on whether this tax credit program is justified, not justified, or who screwed things up in the past , but we will say one thing - Your Sred financing is still alive and well! In fact in some ways it just got better, and we'll talk about that also.

Thousands of Canadian firms receive a total of billions of dollars every year from the Government of Canada for their research and development costs. A large portion of their total costs in several categories of R&D, i.e. labor, comes back to them in the form of a refundable cheque.

Naturally getting monies back for your SRED claim is a huge and positive issue for thousands and firms who are either start up, pre revenue, or who simply... you guessed it... need the cash. Many of our clients actually book the claim they file as a receivable, in effect non refundable monies coming back into their company .The claim is, of course, a combination of funds from both the federal and provincial government. Sred claims are separate from other grants and schemes such as IRAP, etc.

So, getting back to the one thing we want to emphasize today, and that’s ' cash flow '! Naturally it’s a free country and if you want to wait to get your funds back from the government by all means do that. But consider also that you have another option, which is to finance your claim. In Canada SRED claims of almost any size can be financed. While larger claims make more economic sense claims generally in the 80k and higher range certainly are financeable.

So how does the financing work? You should consider this as quite a ' normal ' business financing. (Is any business financing normal these days?!) . The basic application involves info on your firm such as your financial, projections, etc, info on the owners, and copies of the actual claim itself.

SRED claims have tended to be prepared by a group of people in Canada who term themselves SRED consultants. They work on either a contingency basis or a fee basis. We've been watching the SRED battle from a distance and some people are making the claim that the sred consultants themselves have become a part of the problem in the industry.

Let’s use 2 Billion dollars an example. If the federal government gave out 2 Billion dollars it’s the SRED consultants who worked on contingency that receive anywhere from 15- 30% of all these funds as fees. That makes a case for not a lot of value for the country from a pure R&D perspective. Anyway, we promised not to weigh in on that one, so we won’t.

What we are saying is that if your claim is properly prepared, by either yourself or a qualified sred consultant then it’s financeable.

SRED Financing claims are financed at, in general 70% loan to value. We spoke of new developments in the industry as far as financing the sred credit .The good news is that most claims are now financeable as your spend, prior to filing, This is called Accrual sred finance, and gives you cash flow reimbursement as you spend .

Is there a bottom line today? As always, there is. It’s simply that we kind of hope the sred program stays around for all those legitimate firms and consultants who see the true value of the program. And consider financing your tax credit for increased working capital and cash flow. Speak to a trusted, credible and experienced Canadian business financing advisor on Sred Tax Credit finance today.


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

SR&ED Financing In Canada : SRED Loans Accelerate Cash Flow! Here Is Your ‘ How To’

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The Not So Tricky Art Of SR&ED Financing Loans In Canada

OVERVIEW – Information on SRED Loans in Canada . SR ED financing of SR&ED claims in Canada is a viable method to accelerate the cash flow from your firms r&d capital spend . Here’s why.. and how

SR ED financing (' SR&ED’) is a lot less of an art and science than most firms think. We're looking at SRED Loans from a ' how to' perspective - it's the ultimate cash flow acceleration with respect to the key benefit of the program - i.e. recouping a large part of your r&d capital spend. Let's dig in.

Billions of dollars each year flow from the government to thousands of firms who participate in the ' SR&ED ' program in Canada. The ability to turn claims into short term sred loans simply accelerates the benefits of the program. While the govt maintains that the program encourages companies to invest in the future via enhanced products and services the ' journey ' and the ' wait' for the refund can seem daunting at times.

Certain ' resources' are needed to both participate and benefit in the program. They include your own ability to finance the SR&ED process from start to finish, as well as the need to more often than not ( in fact almost always and recommended ) to acquire the services of a SRED consultant who understands your business and is experienced in the preparation , documentation, and filing of your claim.

There is a significant amount of time allowed for you to prepare your claim but the claim is always filed in conjunction with your year end. At this point both the eligibility and quality of your claim is key. Claims typically have a technical narrative and a clear break down of the costs you are claiming in the process. All of this effort is of course focused on one goal - the refund! , which is for most firms available in the form of a cheque from the government. Typical refunds are in the 30-40% of your total R&D spend, so it's easy to see why the program is in fact one of the most ' real' and ' attractive ' programs in Canada.

So at this point you've identified the nature of your claim, you've engaged an industry consultant to prepare the claim and you're filing your claim. In certain cases claims are subject to audit and assessment - thereby prolonging the waiting period for your refund.

Tired of waiting? Consider financing your claims as soon as it is filed. Enter the SR ED financing process. SR&ED Bridge loans are typically done on a 70% loan to value basis - allowing you to monetize your claim and accelerate that cash flow benefit we have been speaking of. The main collateral for the loan is of course the SR&ED claim itself - loans are repayable at anytime and rarely last longer than a year, by which time your refund will have been approved and processed via the govt.

Recent enhancements to financing claims allow you to file for both past and present claims, as well as to start a financing process around your next year’s claim.

The SRED loan process is quick and efficient, with most claims being financed within a couple weeks. If you're looking to accelerate R&D capital expenditures seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with SRED Loans that make sense for your firm.


Stan Prokop
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 . Info /Contact :


7 PARK AVENUE FINANCIAL = CANADIAN SR&ED FINANCING AND LOAN EXPERTISE




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

Borrow Against SRED Claims - Use (SR and ED) Tax Credits and Finance For Cash Flow!

In the world of finance more often than not today is better than tomorrow, and when it comes to borrowing against your SRED claims your ability to monetize SRED tax credits for working capital is the ultimate win win situation. Here is why!

The Canadian governments Scientific Research and Experimental Development (aka 'SRED', 'sr&ed') program provides in the area of 4 Billion dollars per annum to Canadian businesses in the form of a non repayable tax credit cheque. The only reason you wouldn't get your cheque is if you had corporate tax arrears, and that's still a good thing we think, because at lease then the government offsets your tax arrears with your credit. (By the way, we don't recommend tax arrears as a financing strategy!)

Your company is using the program for all the right reasons, i.e. improving products and services, staying competitive, etc. But many firms either haven't heard of or lose sight of the fact that the SRED tax credits can be even more 'accessible ' if you will, when you borrow or finance your claim.

Turning your SREd tax credits into valuable cash flow and working capital moves you one step ahead of your competitors we have always maintained to clients. Why. It's simply the old finance adage that a dollar today is worth more than a dollar tomorrow, as it can be re invested in your operations for a variety of reasons.

A typical question we get from clients considering the financing of a SRED claim is ' what are we allowed to use the funds for?'. And of coruse they love the answer, which is simply for any general company purpose you choose - typically that becomes reduction of working capital, clearing up or lowering payables, and just general day to day operations.

Financing your SRED claims in essence ' invigorates your working capital.

So who finances these claims and how would be describe the process. Is it complicated; easy, how long does it take? Those are the typical client questions in consideration of SRED finance.

We can make a broad pretty safe statement that banks in Canada don't finance sr&Ed claims for your tax credits. If they do, it is in conjunction with other security and arrangements you have with your bank. Most firms we talk to either have approached their bank, been declined, or simply have not been aware that sr Ed credits can be financeable.

We recommend you speak to a trusted, experienced and credible Canadian business financing advisor who is knowledgable in the area of SRED tax credit finance. That will shorten your process, maximize the amount you can receive under you claim, and in almost all cases simply reduce the time and effort you might normally expend to investigate SRED financing.

The reality is that a SRED finance expert can usually originate a full financing of your claim in a manner of a couple weeks, allowing for simple basics such as an application, review of your actual SRED technical filing, etc.

So, can you borrow against SRED claims? The answer is of course yes. Should you? That's your decision, but if you need cash flow and working capital today from a non repayable government tax credit that you certainly know what to do now. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your tax credit financing needs,


Stan Prokop
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


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.





Article Source: http://EzineArticles.com/5910297

SRED ( SR&ED ) Loans : Don’t Be Out Of The Loop On SR ED Refundable Tax Credit Financing

A Beautiful Marriage

Of Cash Flow & Tax Credits : The SR&ED Loan Works

OVERVIEW – Information on SRED loans in Canada . SR ED refundable tax credit financing cash flows r&d expenses , accelerating working capital your firm has spent on research and development for future growth and profits and market domination

SR ED refundable tax credit financing could well be called the perfect marriage of cash flow and the maximization of government tax credits for research in Canada. These ' SRED LOANS ' help to power the economy in a number of ways - which is of course why the Canadian government provides billions of refunds each year to qualified claims. Let's dig in.

We're the first to admit and agree that even the name of the program is a bit too fancy and might well turn off many applicants. (SCIENTIFIC RESEARCH AND EXPERIMENTAL DEVELOPMENT ... aka ' SRED'!) That conjures up men and women in white coats, labs, etc. Yet the reality is that thousands of firms in almost every industry in Canada regularly successfully file claims for those billions of dollars we've mentioned.

Cash flowing your claim simply maximizes , and accelerates recovery of funds for eligible applicants, typically private companies and partnerships .Many business owners and financial managers who either are not fully aware of the program, or a just misunderstand it somehow feel they need to show profitability , or other forms of credit worthiness to both file and finance their claim .

The fairly technical work in preparing a claim is usually handled by a SR&ED consultant. These folks prepare the majority of claims and having a credible / experienced consultant is one key factor that enhances the finance ability of your claim. Its qualified consultants that both maximize a claim, add credibility to their approval from Canada Revenue, and, as we noted help the financing approval.

The total cost of preparing and financing a SR&ED tax credit filing are two separate matters. Preparation consultants typically work on a contingency fee, although fee for service preparation is absolutely available also. We've observed business owners appear to prefer consultants on contingency because these folks absorb all the time and financial risk involved in filing a claim.

SRED Loans are usually ' bridge loans ' - your company receives 70% of the total claim as a cash flow loan - no monthly payments are made in the interim period while you are waiting for claim approval. That other 30% of your funds? You receive it as soon as the claim is approved and funded by the govt, less financing costs.

One top expert analogizes your SRED claim to a well executed high school class experiment

that’s well documented and supported.








Our final point today? Simply that if you're not familiar with either the program itself, or the financing of your claim seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you in that beautiful marriage of cash flow and govt refundable credits.


Stan Prokop - 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 90 Million $ of financing for Canadian corporations . Info /Contact :


7 PARK AVENUE FINANCIAL = CANADIAN SR&ED TAX CREDIT FINANCING LOANS EXPERTISE




Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
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7 Park Avenue Financial

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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 '