How To Leverage SRED (SR&ED) Tax Credit Financing And Factoring for Cash Flow

Tweet

YOU ARE LOOKING FOR SRED SR&ED TAX CREDIT FINANCING AND FACTORING! 

How Canadian Businesses Turn SR&ED  Tax Credits into Cash Flow

You've arrived at the right address! Welcome to 7 Park Avenue Financial 

        Financing & Cash flow are the biggest issues facing businesses today

   ARE YOU UNAWARE OR DISSATISFIED WITH YOUR CURRENT BUSINESS FINANCING OPTIONS?

CALL NOW - DIRECT LINE - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs

Email -  sprokop@7parkavenuefinancial.com

 

 

Converting Research Credits into Tangible Assets: The SR&ED Way

 

Unlocking Liquid Assets: SR&ED Tax Credit Financing & Factoring in Canada

 

 

Introduction: Unlocking Working Capital with SRED (SR&ED) Tax Credit Financing and Factoring

 

SRED (SR&ED) Tax Credit Financing offers businesses a strategic avenue to bolster their cash flow and working capital.

 

If you've explored this route, you understand the importance of timing. As companies navigate the financial landscape, converting or discounting SRED claims into immediate capital emerges as a solid business decision and cash flow solution.

 

Canadian Business Owners and the SR&ED Program

 

Many Canadian enterprises leverage the SR&ED program, aligning their efforts with research and fortifying their market position in their industry. However, it's startling that many businesses remain unaware or have yet to exploit this lucrative offering.

 

SR&ED Program: A Snapshot

 

Designed for qualifying private companies, the federal SR&ED program awards a non-repayable tax credit. This translates to a government investment tax credit, rewarding a significant portion of a company’s R&D expenditure.

 

While reclaiming this cash flow is rewarding, the prospect of financing your claim shortly after its filing (or even prior) adds another dimension, especially in today's challenging business cash flow scenarios.

 

Sred accrual financing is also available for claims not filed yet!

 

SRED Tax Credit Financing & Factoring: The Mechanics

 

How do we define SRED financing and factoring? Drawing parallels with 'factoring' – a financing solution gaining traction in Canada – one can view an SRED claim akin to a receivable regarding the SR ed refund owing to the business.

 

The principle guiding receivable financing seamlessly applies to SR&ED claims for business owners and financial managers.

 

  

Is SR&ED Financing a Complex Process?  

 

Contrary to popular belief, securing SR&ED financing is relatively straightforward. It's a simple process if a competent consultant or accountant has prepared your SR&ED and your firm is eligible under program guidelines. Financing those qualified expenses is as easy as that!

 

  

 SR&ED Financing: The Application Walkthrough For Your Refundable Tax Credit  

 

 It  all starts with a  simple business  application, followed by the submission of essential documentation about your claim and company,

The  SR&ED financing process is as basic as any financing application for commercial funding.

 

SR&ED claims can transition to financed assets within weeks – a much-improved timeline over conventional business financing!  A term sheet/financing offer is provided once the application receives approval and the SR&ED claim is reviewed. Interestingly, the primary collateral is the claim itself.

 

Businesses can anticipate a 75% Loan-to-Value (LTV) on their claim. To put it in numbers, a 300k claim could unlock immediate financing equivalent to 75% of that value.

 

The best part? No monthly payments ! This capital can be invested back into the business. Upon the government's finalization and clearance of the claim, the remaining 25% gets credited back to the company, less financing charges that are very competitive - Talk to the 7 Park Avenue Financial team about how you can achieve the lowest sr&ed financing rates in Canada.

 

Why Consider SR&ED Tax Credit Financing?

 

Cash flow - it's as simple as that! Immediate cash flow deriving from a government's non-repayable grant – it's an option deserving of consideration.

 

Conclusion:

 

SR&ED tax credit financing and factoring is a great, non-dilutive remarkable financing option for Canadian businesses focused on growth and stability. Leveraging this facility can propel a business ahead, tapping into government-backed incentives and translating them into tangible assets such as cash.  

 

Call 7 Park Avenue Financial, a trusted, credible, experienced Canadian Business Financing Advisor who can assist you with your business financing needs.

 

 

FAQ: FREQUENTLY ASKED QUESTIONS /PEOPLE ALSO ASK / MORE INFORMATION

 

 

What is the SR&ED tax credit program in Canada?
 

The SR&ED program is a federal initiative designed for qualifying Canadian companies, allowing them to receive a non-repayable tax credit for a significant portion of their R&D expenditure.

 

 Why should businesses consider SR&ED tax credit financing?

SR&ED tax credit financing offers businesses a strategic opportunity to bolster their immediate cash flow and working capital, turning tax credits into tangible assets.

 

How quickly can a business access funds through SR&ED financing?

Once the application is approved and the SR&ED claim reviewed, funds can typically be accessed within weeks, making it a quick solution for immediate capital needs for refunds under sred tax credit programs.

 

 Is there a monthly repayment obligation with SR&ED financing?

No, the highlight of SR&ED financing is that there are no monthly installments. Businesses can reinvest this capital, and the remainder is settled after claim clearance by the government via the Canada Revenue Agency.

 

 How do I know if my business is eligible for SR&ED financing?

If your SR&ED claim is prepared by a qualified consultant or accountant and your firm is financially stable, you are likely eligible for SR&ED financing.

 

 Are there any hidden costs associated with SR&ED tax credit financing?

Typically, the main cost associated is the financing charge, which is around 1 - 1.25%  monthly. It's essential to discuss achieving the best financing rates with 7 Park Avenue Financial.

 

How does SR&ED financing differ from traditional bank loans?

Unlike traditional loans, SR&ED financing is more niche, focusing on your R&D tax credit claim for scientific research and experimental development as the primary collateral. It's a specialized form of financing that doesn't rely on traditional lending criteria.

 

Can startups or new businesses achieve SR&ED tax credit financing?

Absolutely! As long as the startup or new business has an SR&ED claim prepared by a competent authority and the company has financial viability, it can explore SR&ED financing.

 

Click here for the business finance track record of 7 Park Avenue Financial

How to Qualify for SR&ED Tax Credit Financing and Why SRED Loans Work!

Tweet

 

 You’re looking for SRED Tax Credit Financing! 

Financing R&D in Canada: The Ultimate Guide to SR&ED Tax Credits

You've arrived at the right address! Welcome to 7 Park Avenue Financial 

        Financing & Cash flow are the biggest issues facing business today

   ARE YOU UNAWARE OR DISSATISFIED WITH YOUR CURRENT BUSINESS FINANCING OPTIONS?

CALL NOW - DIRECT LINE - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs

Or Email us with any questions on Canadian Business Financing

Email: sprokop@7parkavenuefinancial.com

 

 

Unlocking Financial Potential With SR&ED Financing with Canada's SR&ED Tax Credit Program 

 

Introduction: Get with the Program! Understanding SR&ED Tax Credit Financing

 

"Get with the Program!" is a familiar phrase in business. It rings particularly true when discussing the SR&ED (Scientific Research and Experimental Development) tax credit financing in Canada. This program grants immediate access to vital cash flow, enabling Canadian companies to stay ahead of the competition.

 

  

The SR&ED Program: An Overview for Canadian Business Owners - The Mystery Behind Underutilization!  

 

Despite being an essential resource, the SR&ED program remains underutilized by many Canadian business owners and financial managers. Those who ignore the program and the potential for financing their tax credits miss opportunities that their competitors might seize. It's a competitive edge that can support immediate cash flow and working capital needs.

 

  

Financing Claims: Step-by-Step Guide  

 

Financing a claim begins with eligibility. The SR&ED program, widely regarded as one of Canada's best government grant initiatives, offers non-repayable funding for research and development activities within the country.

 

With almost 20,000 firms benefiting annually, a gap exists where many eligible firms miss out on free financing and vital help with cash management without taking on unnecessary new debt or not having to dilute further owner equity.

  

 

 

Qualifying Expenses: More than Just Research  

 

Qualifying expenses for the SR&ED program encompass equipment, training, overhead portions, eligible salaries, and the core research of the sr ed project involved in creating innovative products and services.

 

To qualify for Canada's SR&ED program, a project must meet three criteria: Technological Advancement, Technological Uncertainty, and Technical Content.

 

These aspects ensure that the project has contributed to technical knowledge, faced challenges or uncertainties, and followed an iterative process to overcome those obstacles.

The spirit of the SR&ED program is to foster innovation, but it does not require the project to be world-changing or financially successful.

 

The Canada Revenue Agency determines eligibility through five questions that evaluate whether the project tackled a novel scientific or technological problem, formulated and tested specific hypotheses, followed a scientific approach, and resulted in technological advancement.

 

Notably, advancements must be scientific or technological, not merely business-related, and unsuccessful attempts at innovation may still qualify if they align with the program's criteria and contribute to the company's knowledge base.

 

SR&ED Program Cash Flow: How It Works Eligibility and Financing Your Claim

 

Once you've determined eligibility and interest in preparing and financing your claim, it's time to act. SR&ED program cash flow comes from the claim filed. In Canada, up to 75% of your total claim can be financed, translating to a bridge loan of 70 dollars for every 100-dollar claim filed. These funds are versatile and can be used for working capital, payable reductions, equipment purchases, and further R&D.

 

  

 Expertise Matters: Choose the Right SRED Consultants To Write Your Claim   

 

Successful SRED claims require qualified consultants who understand your industry versus an in house team which might not have the expertise. They enhance your claim and lend credibility to ensure full approval. Even if the claims face adjustments later, filing a claim still makes sense.

 

Submitting a claim for the SR&ED program requires completing the T661 Technical Narrative. This essential document details the project's initiation, challenges, and solutions. Crafting the narrative is a delicate balance of art and science; specific frameworks are available to help create a coherent and convincing account.

 

Conclusion: SR&ED Tax Credit Financing: An Opportunity Worth Exploring

 

SR&ED tax credit financing is about Canadian businesses monetizing a receivable, the SR&ED claim itself, and enjoying non-repayable cash now rather than later.

 

A  Sr ed loan is another opportunity to bolster your financial cash flow position and gain a competitive edge via the tax incentive based on your eligible expenditures.

 

For a deeper understanding of how cash flow for SR&ED claims can benefit your business, call 7 Park Avenue Financial, a credible,  knowledgeable, and experienced Canadian business financing advisor. Explore the potential and let your business thrive with SR&ED tax credit financing.

 

By embracing this government-backed program, Canadian business owners can leverage innovation, foster growth, and stand firm in a competitive marketplace. The SR&ED tax credit financing program isn't just a financial tool; it's a strategic business asset.

 

 

FAQ: FREQUENTLY ASKED QUESTIONS PEOPLE ALSO ASK MORE INFORMATION

 

What is the SR&ED tax credit program in Canada? 

  

It's a government grant program providing non-repayable funding for research and development activities within Canada, helping businesses access immediate cash flow.

 

The Scientific Research and Experimental Development (SR&ED) Program offers tax incentives to promote research and development (R&D) within Canadian companies across all sectors and sizes. The incentives include an income tax deduction, an investment tax credit (ITC), and sometimes a tax refund. Managed by the Canada Revenue Agency (CRA), the SR&ED Program provides over $3 billion in tax benefits annually to more than 20,000 claimants, marking it as Canada's most substantial federal support for business R&D.  

 

How can my business qualify for the SR&ED program?

 

Your business may qualify by engaging in eligible research and development activities in Canada, including equipment, training, overhead, salaries, and research expenses.

 

Can I finance my SR&ED claim?

 

Yes, you can finance up to 75% of your total claim, allowing immediate access to funds for various corporate purposes.

 

Why should I consider SR&ED financing?

 

SR&ED financing offers immediate cash flow and working capital, allowing you to invest in further growth, such as equipment acquisition, research, and development.

 

How do I file an SR&ED claim? 

 

A qualified SR&ED consultant with knowledge of your industry can assist in preparing and maximizing your claim.

 

What can I do with the funds from SR&ED financing?

 

The funds can be used for working capital, payable reductions, equipment purchases, and further research and development.

 

How does A  SR&ED Loan program financing for cash flow work?

 

It arises from the claim you file, allowing a bridge loan of up to 75% of your claim, translating into immediate access to funds for basic research qualifying under the program. No payments are made for the duration of the bridge loan, and the loan is collapsed and paid out when the government approves and funds the claim.

 

Are there any risks in SR&ED tax credit financing under the SR ED Tax Incentive Program?

 

Even if the claims are adjusted later, filing a claim makes sense, and choosing an experienced consultant can minimize risks while funding your refundable tax credit for applied research.

Businesses can earn the SR&ED investment tax credit (ITC) to reduce income tax payable. Companies must ensure their r&d is focused on scientific or technological uncertainty to help ensure a sr ed refund.

 

How do I find the right Canadian business financing advisor for SR&ED?

 

Look for a trustworthy, knowledgeable, and experienced advisor, such as 7 Park Avenue Financial, who understands the SR&ED program and your industry's needs and can offer the best and competitive rates for SR ED loans in Canada.

 

Why is the SR&ED program underutilized?

Lack of awareness or interest in free funding, and a misunderstanding of the program's benefits, often lead to underutilization among eligible firms.

 

Is SR&ED a tax credit?

 

The Scientific Research and Experimental Development (SR&ED) tax credit functions as a collaborative initiative led by both federal and provincial governments in Canada to assist Canadian controlled private corporations investing in r&d.

 

Its purpose is to incentivize and assist businesses in engaging in research and development (R&D) efforts, especially those they might hesitate to undertake due to various constraints.

 

                                              

Click here for the business finance track record of 7 Park Avenue Financial

Should You Finance Your SRED Tax Credits Via SRED Consultants On Your SR and ED Claim?

Tweet

Should you, or shouldn't you? We're talking about your SRED tax credits, filing the actual SRED claim for financing purposes, and the role of 'SRED consultants' in the whole process.

A basic primer never helps, as we still today run into many clients that don't even know what the whole cra SRED program is, let alone use it, and let alone use the proceeds for working capital financing.

If you're a speaker they say it's good to know about your ' target audience '. Well, our target audience is very clear! Whether you are a start up, or an established Canadian company, and if you are spending any money at all on research and development costs, then, guess what - you're our target audience today.

And, if you can utilize the program the ability to finance your claim for immediate cash flow and working capital improves your balance sheet immediately, certainly from a liquidity viewpoint - and cash is always king we are told.

Let's cover off who those SRED consultants are, because they are a key process in the filing, and to a certain degree, financing of your claim. That claim of course allows you to get your firms share of the 3-4 Billion dollars of annual cheques that are written to your competitors, and our goal with our information is to get that funding into your hands as soon as possible.

SRED consultants are private individuals and firms, somewhat boutique in nature, that specialize in writing and filing your SRED claim. Filling out any government form for us has always been a daunting task, but to miss the opportunity in a SRED filing and getting approval isn't just embarrassing, it could cost your firms thousands, or tens of thousands of dollars in missed refunds. So these consultants tend to be very experienced in SRED claim process, and have the ability to maximize your SRED tax credits to bring you the most dollars possible.

Who isn't interested in a non repayable credit from the government? Certainly no one we speak to. So we think you would agree that the ability to ' get with the program ' so to speak, when it comes to a SRED claim is beneficial to any firm. And by the way, only privately owned Canadian firms can benefit in this manner from SRED tax credits.

So your firm is eligible - you're either a first time filer, or you have been doing this for years. What else could you possibly benefit from in this program? The answer is, we think, that you should consider financing your claim. Why does that make sense? To us maybe its too obvious, but the ability to cash flow your SRED tax credits into immediate working capital puts you one step ahead of the game when it comes to your business growth.

Financing the claim is a very simple process. Locate a Canadian business financing advisor that is trusted, credible and experienced in SRED tax credit financing. That person will help you understand the basics of the financing - which is essentially a bridge loan collateralized by your claim. In effect you're financing or monetizing a government receivable. Your receive approximately 70% of the valued of your filed claim, now, which we think is better than waiting, 3, 4 or even 12 months for your claim to be approved and to receive your funds via the government.

Claims can be financed within a matter of weeks, and the process is simply a business application supported by the information around your SRED claim. Having your claim prepared by one of those qualified SRED consultants just simply lends credibility to your filing. So, should you or shouldn't you. Our recommendation - file a SRED claim if your are eligible. Finance it if you want cash flow and working capital now. It's as simple as that.

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






















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


Article Source: http://EzineArticles.com/5819571

The SR&ED Bridge Loan – The ‘ Hushed Truth ‘ On ( SR ED )SRED Tax Credit Financing Loans In Canada

Tweet







SR&ED ( SRED ) Finance is… Alive and Kicking!

Information on the SR&ED bridge loan in Canada. SRED Tax credit financing is a valuable way to enhance cash flow. SR&ED loans were and are available during recent program changes

The SR&ED bridge loan in Canada. Did it almost become a hushed secret at a timer when the very existence of the SRED tax credit seemed in doubt?


The real secret of SRED loans in Canada is that they were available for your tax credit prior to the current budget, and, guess what. ? .... They remain in place today for your tax credit financing strategy!


Most Canadian business owners who utilize the SR&ED program in Canada were keenly aware that the very existence of the tax credit seemed in doubt in 2012 - That concern is long since gone!!!


Well, the dust has settled and if we had to say there was a general consensus we would have to say that in general there's a status quo around the program. Many firms who felt they would do ' better' or ' worse ' under the new changes are finding that it’s a case of ' it depends ' - so it could have been a lot worse.


Thousands of Canadian businesses received Billions of dollars every year under the program, the formal name of course being Scientific Research & Experimental Development. Hence SR&ED. Your firm’s ability to demonstrate you have improved a process or processes, or come up with new technology or software qualified you for Sred.


We’re e not ( fortunately ?) accountants , we're financiers, so we'll let you talk to your SRED consultant or advisor on the various rates changes that took place, some up, some down , under the program . We would note that the biggest change seems to be the fact that capital expenditures don't qualify under the program, but salaries and materials and portions of your overhead still qualify.


We'd love to take a poll one day on how many Canadian firms know that SR&ED Tax Credit Financing exists in Canada. We'd venture to say is clearly the majority, not the minority. So if we had to reveal that ' hushed secret ' on this major Canadian tax credit incentive it's simply ' Hey, you've got an options on your SR&ED tax credit .. You can wait for months, or much longer for you refund cheq. . OR ... you can finance your claim.


If you do have a claim that's prepared by an experienced and credible SRED consultant that claim can easily be financed. The basic rules around that are as follows - The SR ED bridge loan gives you approximately 70% of the face value of your claim. No payments are made during the loan period - at final approval and payment of your claim by Ottawa and the province you receive your remaining 30%, less financing costs, a simple application and you ability to provide the SRED tax credit as collateral is all that’s required.


So is SRED dead? It looks like it isn’t. We can hear the sigh of relief among all those SR&ED consultants who provide the majority of the writes ups on claims in Canada.


And, don’t forget. SRED tax credit financing loans are here today, they were here yesterday, and they will be here tomorrow.


Speak to a trusted, credible and experienced Canadian business financing advisor on help for SR ED bridge loans for working capital and cash flow for your Canadian firm.






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

Direct Line = 416 319 5769

Office = 905 829 2653

Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com


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

' Canadian Business Financing With The Intelligent Use Of Experience '

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

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

Stan Prokop

How To Leverage SRED (SR&ED) Tax Credit Financing And Factoring for Cash Flow

Tweet





Cash flow your SR&ED claim today !

Information on Sr&ed tax credit financing. Factoring / cash flowing your Sred claim via a Sr&ed loan immediately leverages your firms cash flow investment in your r&d capital investments

Leveraging your SRED (SR&ED) Tax credit via the financing and factoring of your claim is a responsible way to maximize cash flow and working capital. It’s all about timing, and if your firm requires additional working capital financing the ability to cash flow or discount your claim for working capital today is a clear and viable option.

Canadian business owners that partake of the program in Canada clearly have recognized the benefits of research and furthering their competitive position in product and services. Although tens of thousands of firm take advantage of the program we are always amazed at the number of our clients that either have not heard of the program, much less take advantage of it.

Let’s do a short primer on the program, and more importantly, the financing aspects of your claim. And trust us, we are not talking about going to your chartered bank for that financing, as this type of financing is somewhat boutique and niche requires specialized financing and financing assistance.

The federal SRED program is s of course for private companies that qualify for a non repayable tax credit, in effect a grant from the government for a large percentage of their R&D spending. Your ability to recover that cash flow is of course a very positive aspect, but, the ability to finance your claim as soon as it is filed, ( in some cases before ) simply is one more alternative in today’s challenging cash flow environment to monetize a short term asset and turn it into cash flow .

So how does Sred (Sr&Ed) tax credit financing and factoring work? We use the term factoring because its becoming more broadly understood and accepted in Canada - so what we are simply saying is that your sred (sr&Ed) claim is in effect a receivable, and in the same manner that you would consider financing a receivable is really the same logic and methodology around a sred financing.

Is it difficult to finance a Sr&Ed? We keep that explanation to our clients very simple. If you have a sred that has been prepared by a qualified consultant or accountant and your company has viability then your claim is financeable. Is that complex, we don’t think so.

Have you ever applied for any type of business financing before? What was involved? - Typically it was filling out an application, providing back up documentation, and clarifying, if required to a business lender, any information that required explanation. Guess what, that’s the SRED process also.

A claim can be financed in a matter of weeks, which we think is a very typical time for any type of business financing these days. After a basic business application and review of your sred a term sheet is issued. Typically the main collateral for the financing is of course the sred claim itself. In Canada its typical to receive about 70% LTV for your claim, meaning that if you calim is 300k you would receive immediate financing for 70% of that amount .Whats the monthly payment clients ask?


Here's the good news, there is none. You put that cash flow to work and when your claim is finalized, adjudicated and paid by Ottawa then you receive the other 30% of your claim , minus of course the financing costs, which typically are in the 1.5 -2% range per month .

Speak to a trusted, credible, and experienced Canadian business financing advisor on how SRED (SR&ED tax credit financing and factoring works. Cash flow today from a government non repayable grant - How could you not consider that option!



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 Tax Credit Financing : Your Backup Cash Flow Plan For Your R&D Capital Investment

Tweet

SRED Tax Credit Financing – 3 Things you need to Know



Information on the benefits of SR&ED ( sred ) tax credit financing in Canada. Here's what business owners and financial mgrs who participate in Canada's research refund program need to know!

Canadian business owners and financial managers who are not as conversant with Canada’s SRED program as much as they would like to be pose three major questions when we sit down with them and talk about SRED ( aka (Sr&Ed) and Sred financing . Typical questions include”

What is the program – am I eligible

How long will I have to wait for the money

How can I monetize of cash flow my sred claim for immediate working capital now?


Let’s examine the basic thing you need to know around those three key areas.


Canada’s sred program is without a doubt the most powerful program when the business owner asks themselves – ‘ What assistance is available in the form of government loans and grants ‘ – a typical question often asked by every Canadian business owner . And the good news is that not only is the sred program available to virtually every type of industry in Canada, the funds coming to you under that program are non – repayable .

The program basics are simply that sred was set up to encourage innovation in products, technology, and business processes. A very heft ‘rebate ‘comes back to your firm in the form of a large percentage of the actual expenses you have incurred in the research and development area.

Naturally for many businesses R&D is the key driver that allows your firm to stay competitive and ahead of the pack, so the ability to recover a large part of those expenses at the governments cost is a huge benefit to Canadian business. And when you are able to both file a sred claim and be armed with the knowledge that it is financeable is clearly a powerful win win strategy.


Many business owners are also not aware that the credit can be claimed for the previous two years, so this is one case where playing catch up is a good thing. To determine eligibility for a sred speak to your accountant or what is known as a sred consultant.


‘So when does our firm get the actual money ‘?’ is one of the next major questions customers pose. Here are the basics around that issue. Naturally do receive funds you have to file your claim – this is done at the time you and your accountants submit your year end corporate tax filings. In fact the sred claim must in fact be filed at this time to maintain your eligibility. The key issues you have to know about are that you want to ensure you have a claim that is filed in a timely fashion, as per above.

At the same time focus on the quality of your claim – by now you should be working closely with your accountant or sred consultant to ensure you claim is properly documented . Recent new process at Canada Revenue Agency are clearly, in our opinion, focus on weeding out the ‘wheat from the chaff’, so to speak.

You want to ensure your claim has been filled out with the proper form – there is even an online process you can utilize. Your ability to succinctly make your claim, and, as importantly, back it up with the proper documentation will ensure much higher probability of approval. In some cases the claim might be partially disallowed if rationale, submission style, and back up info don’t conform to what the sred folks want to see.


Now lets focus on what to most of our clients is the most important aspect of the sred program process – which is ‘getting the money ‘! Here we advised clients you have two options, you can wait for the cheque which may take months and in some cases a year, or you also have the option to finance your claim immediately. We are all familiar with consumer programs which provide immediate cash for their personal tax credit rebates – essentially we are talking about the same thing.


Select a trusted business financing advisor who is credible and experienced in sred financing. That will allow you to complete a basic financing application, undergo the standard due diligence that any business financing might entail, and then proceed to documentation of the sred financing, in essence you ‘ sell’ your tax credit in return for immediate cash now .

Clients ask ‘ how much can we get ‘ and the rule of thumb in sred financing is generally 70% - the balance is held back and remitted to your firm on final approval of your claim by CRA . No payments are made in the interim (that’s a good thing) and you receive the remaining 30%, less financing costs at final closure on the claim.


So now you have taken a double advantage of one of Canada’s best programs for business – you have filed and received approval for a non repayable grant for a significant portion of your r&d expenses, and , as importantly you have monetized or cash flowed that claim . That’s great Canadian business follow through.


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

SRED Tax Credit Financing : Making The Case For SR ED Loans & Recovery Of Your R&D Capital Investment

SR&ED Tax Credit Financing - 2 Things You Must Know

OVERVIEW – Information on Sred tax credit financing in Canada. Utilizing SR ED bridge loans is a cash flow effective way of speeding up recovery of your r&d capital investment

SRED Tax credit financing, even just the concept of SR ED loans to monetize your R&D capital investment can be a confusing scenario for Canadian businesses who take advantage of the most popular of Govt refund credits. So we're officially forgiving those who don't know the basics - and we'll fix that with some solid tips and info. Let's dig in.

Looking for a breath of fresh air in the SR&ED world? When it comes to financing and monetizing your claim 2 simple facts remain and we'll simplify that as follows:

1. If you have a sred claim it’s financeable for cash and working capital now

2.To finance a claim you need to have filed a claim, but not always!!


Your ability to monetize or cash flow a claim is in fact a superior way of generating additional working capital and cash flow now based on the value of your filing. We will add one technical point here, in that claims are generally financed at 70% LTV. LTV means ' loan to value ‘, so we are simply saying that for every one hundred thousand dollars of sred claim filing you can generate seventy thousand dollars via a short term sred bridge loan .

We can expand on that point a bit to ensure you are well informed. After filing a claim it is clear you are in a ‘waiting mode ' for your claim to be analyzed, potentially audited, and then of course waiting for the proverbial government cheque - shall we say ' it's in the mail ‘!

With Ottawa backing your non repayable cheque you of course have the assurance funds will come, but you just don't know when!

We recommend that if you have filed a claim that you investigate the ability to finance that claim now.

Why wouldn't you consider a financing option to accelerate cash flow and start using those funds now?

Uses of funds under SR&ED financing are totally within your control. We see clients utilize SR&ED loans to further invest in even more R&D, i.e. next years claim! or you can choose to reduce payables, invest in additional equipment or business assets, etc.

In a small handful of cases we meet with firms who have a tax liability to Ottawa or the province re source deductions, HST, etc. If you work with a trusted, credible, and experienced Sr&Ed finance advisor you can structure your financing to ensure that you're past due remittances are taken care of during the sred financing process. No firm wants to be in the governments bad books re past due government super priority issues.

The actual SR&ED financing process should be treated by yourself as any other business financing - we try and actually make the case its easier in some cases, because the actual asset behind the sred loan is the sred claim itself, so even if you think your firm might not qualify for financing for other forms of traditional borrowing your probably qualify for the sred - why?? Because you have a sred claim as an asset that's verifiable!


Given that billions of dollars are refunded under the SR&ED refundable tax credit you want to ensure you're getting your share - no argument about that. SR&ED loans simply speed up that process. Yes you can wait for funds, which may take a couple months or the better part of a year - if you can’t wait consider financing your Sr&Ed claim via a short term sred loan which is collateralized against your filing.

We strongly recommend you have a professional filing prepared, by your accountant or sred consultant (there are many) - this will significantly positively impact your ability to finance your claim.

Looking for a great cash flow and working capital strategy around that R&D capital investment - Monetize your tax credit. No new debt is on your balance sheet, as it is offset by your sred asset that is in fact a monetizable account receivable. Seek out and speak to a trusted credible and experienced Canadian business financing advisor who can assist you with your claim financing.



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

Sred Tax Credit Financing And Factoring : The Quick Way To Address The Wait In Your SR ED Credits Claim n Canada

Breaking Into The Holy Grail Of SR&ED - Cash !

OVERVIEW – Information on Sred tax credit financing in CANADA . Factoring SR&ED / SR ED credits is a common method to achieve the full cash flow benefits of Canada’s refundable r&d program credits

Sred tax credit financing is simply the quick way to end the wait for your SR&ED refund. The finance and factoring of sr ed credits allows the business access into the ' holy grail ' of Canada's ' Scientific Research and Experimental Development' program - aka ' SHRED'. Let's dig in.

By both improving their products and processes the refundable credit R&D program allows firms such as yours to stay competitive. That reason, coupled with the govt's willingness to assist in the financing of that R&D capital investment you make clearly makes this program a winner for the thousands of firms that routinely recoup billions of dollars annually.

While your company, your Sred consultant, and your accountant are responsible for preparing and submitting and filing your claim the fourth leg on that stool is your ability to finance that claim. Notwithstanding the Canadian gov'ts stated commitment to process claims quickly the bottom line is that a considerable waiting period can occur before your claim is received, processed, potentially audited, and finally .. refunded!

That interim period is often the most difficult one for many firms, many of which are start up or early stage and require cash flow sources they might otherwise not qualify for. Many earlier stage firms rely on this loan as the most important aspect of their annual cash flow planning. Enter financing and factoring of your SR ED credits!

The question clients always us is of course ‘How much can we get? ‘as it pertains to their SRED tax credit filing. There's a two pronged simple answer there. The total amount of your actual SR ED refund is determined by yourself in conjunction with your ' SHRED ' consultant and your accountant.

The actual financing of your claim delivers a total cash flow benefit of typically 70% of that total claim. For example a 200k claim typically qualifies you for a SR&ED bridge loan of 140k. By the way , you can finance, at your choice, last years claim, this years filing, or even next years claim as you embark on further r&d. Typical claims deliver a refund approximating 30-40% of your total r and d spend. The folks known as ' SRED Consultants' add credibility to your claim via their expertise, as well as their ability to maximize the full amount you are eligible to receive back.

Processing your claim in a timely manner, and then taking advantage of the ability to finance your claim delivers cash flow your company can use for any general corporate purpose, many times being simply... more r&d.

The additional benefit of 'factoring' (aka ' selling ') your SR&ED credit is that these loans are structured as ' bridge loans' with no payments made. The loan is collapsed when you receive your refund, at which time financing costs are calculated and deducted.

If you're looking for the holy grail of SR ED, i.e. your cash !... 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 your SRED Tax Credit Financing needs.


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 TAX CREDIT FINANCING/FACTORING 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