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SR ED Financing (SR & ED Loans) In Canada

Guest post by: Stan Prokop

Article Overview: The article provides insights into the ability of Canadian businesses to finance the SR ED grants they obtain from the federal and provincial governments in Canada

SR ED Financing (SR & ED Loans) In Canada

Your SR ED, aka (SR &ED) can be financed! Do you as a Canadian business owner know that? Each day we encounter many Canadian firms who either are not filing SR ED Claims, or who do not know that they can be financed, bring in valuable working capital and cash flow to the firm! Many firms in Canada rely on their SR ED grant to provide valuable working capital and cash flow for their company .

What are the costs to finance a SR ED claim? We can safely say that costs are more expensive than traditional financing. But let's be honest, ok? The SR ED is a non repayable grant from the federal and provincial government. Can we call it free money?! Well it's pretty close, as it is taxable, but non repayable.

We have made the assumption most owners know what SR ED is. That may or may not be the case, so let's do a quick review. SR ED is the Canadian governments 'Scientific Research & Experiment Development 'tax credit program. Companies who do any type of research in a variety of industries are eligible for significant fundings. The government of Canada spends lays out millions of dollars under this program.

With all the negativity around government programs and spending us categorically believe this is the 'holy grail 'of government funding. And remember, it's non repayable.

How long does it take to arrange financing for your firms SR ED (SR & ED) tax credit filing? In our experience, with the full co operation of the customer in providing appropriate information, the claim can be financed in several weeks.

Many customers want to know what is involved in applying for a SR ED tax credit financing. The Canadian business owner or financial manager should understand that this financing, similar to any standard financing application, requires the basics.

What are those basics - well it's the company standard information you have provided to any lender, such as application form, copies of your year end and interim financial statements, and a copy of the SR Ed filing itself.

The SR ED (aka SR & ED) filing must be prepared by an accredited party, that usually is either your accounting firm or an experienced SR ED consultant. Many SR ED consultants have particular expertise in your industry. They can maximize your claim because they have experience in your type of research and development and processes.

We further point out that your company must be up tot date with all Government super priorities, by that we mean employee deductions, PST/ GST, etc. In certain cases you can work around this issue, but inevitably you have to be able to maintain that you can bring the government up to date.

SR ED financing (SR & ED loans) is just that, temporary loans made against the collateral in your SR ED financing. Is this a valuable and desire form of financing for your firm. If so work with an experienced and trusted financing advisor in the Canadian SR ED domain!

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Article Tags: canadian businesses, Factoring tax credits in Canada, SR ED Loans, SR ED Financing



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