YOUR COMPANY IS LOOKING FOR SR&ED BUSINESS FINANCE SOLUTIONS!
SR ED FINANCING FOR YOUR SR ED TAX CREDIT IN CANADA
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
Suite 301
Oakville, Ontario
L6J 7J8
A tax credit financing loan in Canada for your refundable SR&ED credits satisfies one basic need - recovering your r&d spending! Let's dig in.
WHAT IS THE MAIN REASON FOR FINANCING YOUR SR&ED TAX CLAIM? CASH!
There's really only one reason to consider SRED Finance loans - accessing cash flow today, eliminating the wait around your SR ED filing. It's really as simple as that. The Scientific Research and Experimental Development Tax Credit program via Canada Revenue Agency CRA is one of the most popular and accessible programs in Canada for a refundable tax credit incentive.
WHY TAKE ADVANTAGE OF GOVERNMENT TAX INCENTIVES
There are several ways to look at why Canada has chosen an ' incentive ' type program to encourage Canadian business owners to participate in scientific research. Canada Revenue Agency administers the program, and pretty well, all top experts agree that it’s a tremendous way to receive a cash refund for qualified spending.
WHAT IS A SR&ED CONSULTANT
The majority of the SR&ED claims in Canada are prepared by external consultants who have a lot of expertise in this area. When you finance your claim, you should know that your claim's overall reputation and quality have a lot to do with that consultant. And given that the main collateral for a tax credit loan is, in fact, the claim itself, it goes without saying that it's one key factor in approving your claim for financing. Naturally, if you have filed before with the same consultant, things move along even more quickly.
RECENT CHANGES TO SRED PROGRAMS
Although the program has been around for over 30+ years in recent times, significant changes have been made to the program. At the end of the day, these changes could probably be summarized as follows -
Easier filing via today’s technology changes
Reduction in some of the previously allowed expenses
Pre-claim consultation and simplified online filing
A focus and disclosure requirement on who prepares your claim and for how much
HOW DOES A SR&ED LOAN WORK?
Why and how does your firm finance an SR ED credit? If you're in the majority, who believes ' cash is king ‘a SRED FINANCE LOAN is simply the immediate monetization of your claim. While some may view the challenge of preparing and filing a claim as work enough, imagine the issue around waiting for your claim to be reviewed, audited, and approved.
AVOID THE WAITING FOR YOUR REFUND OR AUDIT DELAYS
That timeline could be weeks but quite often months. Don't forget that the cash you receive on an SR&ED loan can be used for any general company purpose. While many firms plough back the funds into more R&D, funds are also used for working capital/operating expenses, growth, etc. You file your refundable tax credit claim at the same time as you file fiscal year financial statements.
EXAMPLE OF A TAX CREDIT BRIDGE LOAN
Tax credit loans are financing in a very creative manner. You receive 70% of the total claim as a bridge loan. No payments are made for the duration of the loan, and when your claim is approved and funded by the govt, you immediately receive the balance of the claim less financing costs.
LET 7 PARK AVENUE FINANCIAL SHOW YOU HOW EASY IT IS TO APPLY
The application process? It couldn’t be more simple and basic. A typical loan package would include your financials, a copy of your SR&ED filing, and details on who prepared your claim. If you have had previous claims that were approved, the latter being important, nice to have, but not necessary.
CAN YOU FUND YOUR RESEARCH AND DEVELOPMENT CLAIM BEFORE FILING? SPOILER ALERT - YES, YOU CAN!
Preparing a claim but haven’t filed it yet. Your claim can also be financed on a pre-filing basis. So consider future sr ed funding as a part of your overall r&d strategy.
CONCLUSION
Looking to get ahead ' in R&D spending with tax credits via the Sr ed program? Consider SRED finance loans as a quick way to monetize the tax credit asset. Seek out and speak to 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
7 Park Avenue Financial/Copyright/2021/Rights Reserved
