YOUR COMPANY IS LOOKING FOR A SR&ED TAX CREDIT LOAN!
SR&ED FUNDING FOR CANADA'S SCIENTIFIC RESEARCH AND EXPERIMENTAL DEVELOPMENT REFUNDABLE TAX CREDIT
You've arrived at the right address! Welcome to 7 Park Avenue Financial
Financing & Cash flow are the most significant 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
Suite 301
Oakville, Ontario
L6J 7J8
SR&ED Financing easy? Some clients we meet actually have a tough time buying into the fact that SR ED claims finance is not complicated. The bottom line? We think we can show you 'innovation finance’, i.e. SRED FINANCING is not the challenge you might think it is. Let's dig in.
ARE YOU TAKING ADVANTAGE OF SR&ED PROGRAMS AND THE ABILITY TO FUND YOUR CLAIM? WHAT IS SRED?
Any business in Canada that files a SR&ED claim under the sr ed program does so, for the most part, to take advantage of the incentive that the Canadian government provides for a refund of a significant portion of your research expenses. And in Canada, every year, that covers thousands of businesses for Billions of dollars.
CRA ADMINISTERS THE CLAIM
Your claim's actual financing is more dependant on your firm, what you do, and who you work with instead of the good folks who administer and approve requests at Canada Revenue Agency.
CHANGES IN SR&ED
So while we can talk ( argue ? ) all day about the merits of the program, its recent changes in the last year or two, simply speaking, the onus is on Canadian businesses who choose to participate in the program to maximize and recover their ' spend ' on salaries, applicable overheads, etc. In years, machinery and equipment were under that umbrella, but recent legislation changed the SR ED credits' equipment component.
The program's heart is the fundamental premise that claims prepared properly under new claim submission rules can recover funds via applications submitted by Canadian private companies and even proprietorships. (Most companies that file and finance SR&ED claims, though, are clearly private incorporated entities.
MANY COMPANIES IN CANADA SPENDING ON R&D CAPITAL INVESTMENTS ARE NOT FAMILIAR WITH THE PROGRAM
Most people don't realize that the program has been ongoing since way back into the mid '80. Clients we meet who are now taking advantage of the program and heard about it late... well, sorry about that.
THE ROLE OF YOUR SR&ED CONSULTANT
While the SRED program has changed and been tweaked over the years, we point out to clients that SR ED claims finance has, in fact, not changed. Yes, of course, a bit more scrutiny is in place around who prepares your claim (‘ SR&ED CONSULTANTS ' are the folks that prepare and attempt to maximize your claim ) sred financing has, in fact, gotten more competitive and creative.
YOUR CREDIT IS NOT A GRANT - ITS A REFUNDABLE AND FINANCEABLE RECEIVABLE!
The actual tax credit itself is a refundable claim, not a ' grant. 'So as such, your claim in effect becomes a legitimate ' account receivable ' of your business, with the client around that receivable being fairly creditworthy - i.e. the Canadian government and its tax credit program. Your claim is filed with your year-end business return, but by the way, clients can fund their request before filing!
HOW DOES A SR&ED BRIDGE LOAN WORK?
How then are claims financed, and what are some recent innovations in financing SR&ED. Typically your requests are financed at 70% loan to value, and the actual financing is structured as a bridge loan with no payments. When your claim is " finally ' approved by the government, you receive the final 30% of those funds, less financing costs. The benefit is clear - you have ' cash flowed' your R&D capital investment.
CONCLUSION
And oh yes, those recent changes in innovating finance around SR&ED? Many claims that have a good track record in the past can now receive financing before filing your claim for the tax credits.
If you are looking to ' fast track ' and cash flow your investment in R&D, seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with red refund claims and a finance strategy and funding that make sense.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
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