Sred Tax Credit Financing In Canada : SR ED Loans Solve The Refundable Credits Waiting Game

No Grain Of Salt Required ! SR&ED Bridge Loans Work

OVERVIEW – Information on SRED tax credit financing in Canada . SR ED loans accelerate the benefits of Canadian R&D capital investments made for processes and products under Canada’s Scientific Research and Experimental Development ( aka ‘ SR&ED ‘) program.

Sred tax credit financing in Canada (SR&ED) , we maintain, comes with a ' no grain of salt required ' statement attached to it. Most business owners/financial managers would agree that a lot of advice / information/sales pitches they received must in fact be taken with ' a grain of salt ‘! Yet the thousands of firms that take advantage of SR ED loans in Canada have proved that cash flowing their refundable tax credits in Canada's ' SR&ED ) program becomes the final benefit of participating in the program - receiving your cash refund earlier! Let's dig in.

The general nature of Canada's R&D refund program allows companies in any industry to participate. (However they must be privately owned, not ' public' firms). The incentive to recover your cash after the whole SRED process is appealing to thousands of firms who receive billions of dollars in refundable tax credits (aka ' cash ‘! ) based on an ever more simplified application process.

‘Processes’ and ' Products ' are the heart of most of the r&d under the program. SR&ED consultants are the most commonly used third parties who document the costs and activity of your R&D process. They augment the role of your accountant who typically files the claim with your year end tax return - At that point you're ' crystallizing ' your SRED receivable.

While companies choose different accounting treatments to document their SR&ED claim in their financials (‘govt receivable ‘refundable investment tax credit' etc ) the commonality is that you're now in a line up in the whole SR ED process Vis a vis receiving funds.

SRED tax credit financing helps immediately monetize your recovery of wages/materials/ contractor costs etc that are a part of your whole research and development process. We meet clients who have claims ranging from 50k to 1 Million dollars or more. In some cases the cash monetized via your SR ED bridge loan is a critical part of the firms annual cash plan needs. Since the majority of SR&ED claims in Canada are prepared by third parties who work on contingency the financing of tax credit loans makes even more sense - no cash outlay to prepare your claim and no monthly payment for the duration of your waiting period for your refund. (These loans have no monthly payment - they are short term ' bridge ‘finance’)

Business owners/financial managers we talk to are focused on accelerating their claim - that includes the use of a good / experienced SRED preparer, timely filing of their claim, and the choice to finance your credit refund if cash is needed by your firm.

If you're looking to finance your refundable tax credit and eliminate ' waiting ' for your refund seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with discounting your claim for cash .. today.


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 LOAN FINANCING 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

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

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 time 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.

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 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 SRED 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.









Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 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 re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/sr_ed_bridge_loan_sred_tax_credit_financing_loans.html

Effective Sred Tax Credit Financing – Using A SR ED Loan For The Right Reasons

Would your company like to make the most out of a good thing in business - Effective sred tax credit financing, we think you'll agree, does just that. Contemplating a sr Ed loan for the right reasons to us just makes solid business sense.

Lets cover off exactly what you need to know about maximizing your participation in whats known as the Canadian governments Scientific Research and Experimental Development offering - we in the layman’s world call it the SR ED , or SR&ED program . Leave it to the government to use that formal terminology!

Whether you have never heard of the program at all, or are a first time claimant for your share, or , if you are one of the lucky ones and have been filing for years for your share of the 3 Billion dollar pie you are clearly in line to hear some great news . What is that news? It's simply that for the right reasons your ability to cash flow, monetize, borrow against, factor, whatever you want to call it , your sred tax credit can be an effective way of increasing your working capital and cash flow .

Could it be any simpler? Your company is eligible for a refund on expenditures that have been verified under the program for R&D expenditures. Thousands, and we mean thousands of businesses, many of them your competitors, are receiving cheques from the government, that are non repayable for your investment in R&D processes, products and services.

If you are not missing out on filing your claims are you missing out on effective sred tax credit financing. You just might be. We strongly believe that utilizing a sr ed loan for the right reasons is a great way to stay one step ahead of the working capital game .

Let’s examine why effective sred tax credit financing via a sr Ed loan makes sense. Generally it only makes sense under one single condition - its that your firm needs cash flow and working capital for payables reduction, further investment, equipment, and general operating expenses .! We are quite sure you are already in that group!

Monetizing your sred tax credit is simply borrowing against a rebate that is coming to you from the federal and provincial government via your sred claim. Is there anyone in the room that disputes funds today are better than funds tomorrow? We don’t believe you will argue with us on that.

If you are part of the program, or considering the sr&Ed program from a participation point of view you should consider financing your claim after it’s completed. In actuality you can finance it immediately after it’s filed, or in many cases, as you are expending funds!

SR&ED financing is simply the monetizing of that account receivable (that’s really what your sred claim has now become) to use the cash for any worthwhile corporate purpose. A sr ed loan for the right reasons allows you to increase cash flow , and simply stay more competitive - which you probably already are given you are investing in r&d type work .

Effective sred tax credit financing works best when its done quickly and efficiently at competitive rates - no payments are made by your firm and the proceeds of your sr ed loan are netted against the final cheque your firm is due .

Want to wait 3, 6, or 12 months for your sr&Ed cheque. By all means do - but remember your competitor got their cheque today by effective use of a sr&Ed tax credit finance strategy. That’s something to think about.

-

Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/sred_tax_credit_financing_sr_ed_loan.html

How Much Will Sred Tax Credit Financing Cost You and why Sr ed Funding Makes Sense

Does a sred tax credit financing make sense for your firm, and whats the cost of sr&Ed funding in Canada? Well, we'd like to show you some solid reasons to consider a sr&ed loan - we'll let you make that decision , our role is to inform – yours is to decide!


If you are filing sred tax credit claims in Canada you also have the option to finance those claims, when completed, or in some cases, in advance! More about that advance scenario later.

Not every Canadian business owner and financial manager knows they can finance a sred claim - we meet with clients all the time who are surprised their tax credit can actually be financed and monetized into real cash flow, immediately. Naturally we are even more surprised when we run into firms that don’t even know about the program , or , more astonishingly, consider it ' troublesome' to file for a non repayable tax credit . Are we missing something, or is that akin to saying ' no thanks' to some free money.

If you do an internet search on the term ' government grants and loans ' you will see that there are thousands of inquiries around that term. In our humble opinion the two best ' government ' related programs in Canadian business financing are the Scientific Research and Experimental Development program, aka SRED! The other program is the government guaranteed subsidized Loan program, commonly known as the BIL program. More about that one on another day.

Filing your sred claim with the assistance of a firm or accountant or industry specialist is a large part of maximizing your claim. They know the positioning and guidelines around a proper submission, and its all about that fine line of maximizing your claim but ensuring it meets all the criteria. In the last year or so the government has actually streamlined the whole process around submissions, and the jury is still out as to whether Canadian business owners filing for sred tax credits consider this a good or bad thing.

Anyway, sred tax credit financing is available if you have a claim. And we are not talking via the bank, which generally doesn’t consider this a finance vehicle, but rather independent finance firms and Canadian business financing advisors who specialize in sr&Ed funding.

Clients are always very focused on their questions - we can close our eyes and rhyme them off - ' how much does it cost' ' whats involved' and ' how much can I get '.

Claims are generally financed at 70% of the value and the balance is simply held back as a buffer. The whole process can be completed in a week or two with your firm’s co operation, sr&Ed funding is structured very uniquely. You receive funding and don’t make any payments on this financing; it’s a kind of bridge loan. The financing charges are in the 2% per month range - sometimes less, and sometimes more and you can use the funds for any general corporate purpose. With a good track record your claim can be financed during the year as you spend funds , so it is kind of an accrual scenario .

Does sr&Ed funding makes sense? It does it you can use the cash from your non repayable grant to grow your business, increase profits, continue the battle against the competition, and increase your firms cash flow and working capital. The opportunity cost of not doing anything with your claim might just be too great!

Speak to a trusted, credible and experienced Canadian business financing advisor around tax credit financing that might just make great sense for your firm.

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Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 6 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/sred_tax_credit_financing_sr_ed_funding.html

How To Qualify For Sred Tax Credit Financing and Why Sr ed Program Cash Flow works!

Get with the Program ! is an oft used term in business that we often hear . Well, a Sred tax credit financing for Sr Ed program cash flow clearly puts you with the program!

Why Canadian business owners and their financial managers don’t take advantage of the SRED (formally the ' Scientific Research and Experimental Development) tax incentive is beyond us. And when they do take advantage of the program and then don’t at least consider financing their tax credit we really wonder about what they are thinking! Because we can assure our clients their competitors are both utilizing the program as well as financing their claims for instant cash flow and working capital needs.

To finance a claim you of course have to have one, so let’s take a small step back and re cap the program. It's simply, bar none in our opinion, the best government grant type program out their, and grant of course means non repayable and we like that even better.

The program has been around now for 30 years and provides Canadian business with billions of dollars of non repayable grants for the work and funds you expend on R&D in Canada. Almost 20,000 firms take advantage of the program annually - that’s a lot but in reality many firms that are eligible apparently don’t - either not knowing about the program or we guess not interested in free funding. If you can believe that!

The sred tax credit financing program allows you to claim for expenses that qualify in equpment, training, parts of your overhead and salaries, as well as of course the core research you do in developing new products and services.

So, you have determined you qualify, and are further interested in both preparing your claim as well as financing it immediately after it is filed. How is that done ?

SR Ed program cash flow arises out of the claim you file. Larger claims mean larger financings - in Canada typically 70% of your total claim can be financed - that typically means for every 100 dollars of claim filed you receive a bridge loan of 70 dollars. Those funds can be used for basically any sort of corporate purpose. We typically encourage clients to consider using the funds for general working capital, reduction in payables, equipment acquisition, and, who could forget, more research and development to stay ahead of your competitors in the market place.

Good sr Ed claims are usually prepared by qualified sr Ed consultants that know your industry. They maximize your claim and their credentials add professionalism to the viability of your claim being approved in totality. Even if the claims are clawed back the program managers in Ottawa it still of course makes sense to file a claim.

To successfully complete a sred tax credit financing you simply complete a basic business application and provide details of your filed sr Ed. The claim itself is of course the collateral for the bridge loan. Sr Ed program cash flow makes sense because you are simply monetizing a receivable (the sr Ed claim itself) and taking advantage of using non repayable cash now, as opposed to in the future.

Speak to a trusted, credible and experienced Canadian business financing advisor on why cash flow for sr&Ed claims might make great business sense.

--
Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 6 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/sred_tax_credit_financing_sr_ed_program_cash_flow.html

Not Considering Sred Tax Credit Financing Could Be Costly

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!