YOUR COMPANY IS LOOKING FOR A SR&ED BRIDGE LOAN!
FINANCING YOUR SR ED TAX CREDIT
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
EMAIL - sprokop@7parkavenuefinancial.com
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Oakville, Ontario
L6J 7J8
The SR&ED Bridge Loan allows Canadian business owners and financial managers to achieve... immediately... the one key benefit of their tax credit claim under the govt's ' SRED ' ( Scientific Research And Experimental Development) investment tax program. That benefit? The Cash from the refundable tax credit! Let's dig in.
IT'S EASIER THAN YOU THINK TO FINANCE A SR&ED TAX CREDIT
We suppose our favourite saying this week is ' Dumbing Down ‘...all sorts of connotations, but essentially it's evidence of ' lacking intelligence' and ' good judgement’ we’re told. But armed with some basic yet key info around SR ED Tax Financing there is certainly no need in our opinion to ' dumb down’ when it comes to financing your tax credit.
DID YOU KNOW THAT SRED CLAIMS CAN BE FINANCED FOR CASH FLOW
Getting back to basics, we are quite sure there is still a large contingent of Canadian business that does not know that financing to claimants under the program is even available. It is, and the cash flow and working capital you secure via your collateralized claim allows you to continue your research and development under the program and replace valuable cash resources that have been spent on that whole process.
WHAT IS THE KEY BENEFIT OF FINANCING SR ED ?
The key benefit of financing a SR ED claim credit is simply beating the time factor. While the processing of your claim can take months, sometimes much longer (first-time claimants are often audited) your ability to cash flow your claim is really what it's all about in SR&ED financing. A Sred bridge loan is not debt financing - you are simply monetizing/cash flowing the sr&ed receivable.
SOME HISTORY AND BACKGROUND AROUND SR&ED
Historically the entire program has been around for close to 30 years now in various forms. In the 1990s popularity exploded, with Billions of dollars issued every year under the program. Top experts agree that it’s the largest ' support' program for private companies, partnerships, and even sole individuals who are working on new products, processes, etc to stay competitive and grow their business.
It's interesting to note that in the 2011 timeframe the entire program came under massive review... was streamlined to a certain degree, and brought the role of the SRED consultant front and center. It's this group that typically business owners turn to prepare claims.
SMALL BUSINESS NEEDS THE CASH FROM IT'S R&D EFFORT
Govt stats show that over 75% of all tax credit claims under the program are in fact in the SME sector. That is where cash flow is king, so financing your claim emerges as a solid benefit.
HOW DOES A SR&ED BRIDGE LOAN WORK?
And the process? Claims are typically financed in the 70% LTV range (loan to value)... meaning that a 200k claim, as an example provides a 140-150k range financing. Having your claim prepared and by a knowledgeable consultant is a solid key factor in financing approval.
The true beauty of tax credit financing under the program is that no payments are made for the duration of the financing... hence the term ' BRIDGE LOAN '. When the government processes your claim you are advances the remaining 30% of the tax credit, less financing costs.
TALK TO 7 PARK AVENUE FINANCIAL ABOUT FINANCING YOUR SR&ED CREDIT
99.9% of tax credits financed under the sr ed program are done by non-bank entities... and rates are typically mezzanine in nature. It all comes back to the ability to achieve instant cash flow under the financing of the credit.
Innovation has crept into SR&ED financing by the way, and most claims can even be financed while the research and expenses are still in process. It’s a concept known as ' Accrual financing’ of our tax credit.
CONCLUSION
So if you're utilizing the program (your competitors probably are) there's no need to ' dumb down' when it comes to financing your claim. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor with a track record of tax credit finance success. Accelerating your claim is what it's all about.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
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