Tweet

SR&ED FUNDING - 5 Key SRED Funding Loan Basics!

Guest post by: Stan Prokop

Article Overview: SRED FUNDING – How to Gain Immediate Financing for Your SRED Claim – What you Need to Know. Information on sr&ed funding, , how financing via a loan on your sred ( SRED LOAN ) can accelerate cash flow and working capital . Why a SR&ED Loan makes sense for your firm .

SR&ED FUNDING - 5 Key SRED Funding Loan Basics!

Canadian business owners who take advantage of Canada's SR&ED program have one up on their competitors if they not only file a SRED but utilize Sr&Ed funding as part of their overall Sr&Ed company strategy. The program is by far the best program in Canada that incorporates a non repayable grant for your firms R& D work. Many clients hear about ' government grants and loans ' and ultimately realize these are not as available as one would think - however SRED is everything you hoped for and more.

The true power of the SR&ED PROGRAM comes when you accelerate your claim and turn it into immediate cash. Most of our clients, as sophisticated as they might be in their sred filings actually also haven't heard that in certain cases your sred can be considered for financing prior to filing. That whole process is called SR&ED accrual financing.

Let's examine 5 key basics in our overall sred and Sr&Ed financing strategy that you must know or be aware of - they are:

1. Sred financing is highly specialized - seek and work with a trusted, credible an experienced sred financing consultant

2. The only thing you need to know about financing a claim is that you must have a claim! It is a simple business financing application with supporting back up on your Sr&Ed

3. SRED's are financing at 70% LTV - More on that below

4. You can finance a claim as soon as it is filed; starting earlier simply accelerates the process

5. We refer to a SRED ' loan ' - the reality is that no additional debt is added to your balance sheet, because the loan is offset by the asset, the claim itself ! You are simply monetizing, or ' discounting ' you claim.

As you can see by now the whole process of a sred funding is simply the financing or factoring of your claim. You are selling your right in the receivable now in lieu of cash that you will receive from the government many months from now, in some cases close to a year.

Let's back track and share more info on our 5 key basics. As we noted Sr&Ed funding is specialized. Work with an expert for two reasons - maximizing the value and finance rate on your transaction, as well as ensuing the whole process goes smoothly. You should not view the sred loan process any differently than you would any other financing, you apply, you provide supporting back up, and you receive your funds after the normal sort of due diligence. The collateral, if we can call it that, is the SR&ED claim itself.

With respect to # 2 simply focus on the fact that you should consider financing the claim if it will generate a reasonable amount of working capital and cash flow that you need today. To be honest most claims that are financed are in the 200k ++ range, but smaller claims can be financed.

Point #3 had us referring to loan to value - you can expect to receive an immediate advance on approx 70% of your claim - the balance should be viewed as a holdback - its still your money, but final financing costs, plus any adjustments the government makes to your claim are accounted for in that 30% buffer that is held back by the sred financier.

"When can be obtaining our funds "is really the meaning of our 4th point. The entire process takes approx 2-3 weeks as it covers your application, review of your sred, normal financial due diligence, and the clarification of any issues raised by your firm or the sred finance firm . And the good news here is that again the term ' sred funding loan' is a misnomer, you don't make any payments, and finance charges simply accrue and are deducted from the final accounting of the claim. That covers our 5th point of course.

So is there a bottom line - of course there is. It is simply that you should be aware of this great program for Canadian business - if you have a claim and require additional cash and working capital consider a sred funding to solve that challenge.

Related Articles
  Not Considering Sred Tax Credit Financing Could Be Costly
  Great Reasons to take your sr&ed claim and access sred financing via specialize sred funding Canada Programs
  SR&ED Tax Credit Financing - 5 Things You Need To Know
  How Much Will Sred Tax Credit Financing Cost You and why Sr&ed Funding Makes Sense
  Sred Credits – How To Finance Your Claim for Immediate Cash Flow
  Should You Finance Your Sred Tax Credits Via Sred Consultants On Your SR&ED Claim?
  Get the Most From Your SRED refundable credit – Financing Your SR&ED claim with a SRED bridge loan
  SR&ED Tax Credit Financing - 2 Things You Must Know
  The Only Sr&ed Funding Guide You Need For Your Sred Loan on Your R&D Tax credit
  The Only Sr&ed Guide You Need For Your Sred Loan on Your R&D Tax credit
  Cash Flowing your B.C. and Ontario film grants – Film Finances Canada and Tax Credit Financing
  SR&ED Financing – How to cash flow your Sr&ed tax credit for Cash Flow and Working Capital
  Your Company Qualifies For A sr ed tax credit financing - Can you factor sred? Yes you can!
  SRED Financing - Finance SR&ED Claims Today
  Sr&Ed Factoring and Financing – Cash Today for your Canadian SRED Claim
  How To Decide If Sred Financing For Your CRA SRED Is Right For Your Firm
  What If Your SR &ED Research Tax Credit Grant Could be Financed For Funding Today via a SRED Loan?
  Financing Sr ed Credits – Access Working Capital via SR&ED Discounting
  How To Finance CRA Tax Credits For Sred for Cash Flow Now in Canada !
  What If Your Firm Could Get Funding Today for Your Future SR&ED Tax Credit Financing ?

Article Tags: SRED funding, sred funding, sred loan, tax credit financing



Related Forum Posts
seeking investors for global finance opportunity - Phoenix Global Funding, Inc. is a Global Commercial Loan Brokerage, Merchant Bank, and a Business Consulting Firm that can work on commercial deals of all sizes. Our greatest strengths are revealed through our superior internet interface and our extensive private network of lenders and equity partners with which we can service any company on the planet by having the ability to broker and coordinate mergers, acquisitions, and funding of all kinds. As a full service commercial financial conduit we also provide valuation, business management, and profitability consulting. I am offering common stock ownership in Phoenix Global Funding, Inc. It is exciting to be in a position to be able to share not only ownership but profit in this latest project. Our business plan was developed from the oldest, most reliable and the most profitable business model ever created, LENDING. This is all about what the big boys do on Wall Street everyday. We are raising US$1,000,000.00 with share prices starting at $1.00. The exit strategy is in 3 years with a minimum 3 to 1 return on capital, plus a 20% profit share annually.
Why pay a Consultant? - Consultants can bring you into contact with a Funding Source but how do you tell whether a consultant will be successful beforehand? Professional Consultants ALWAYS ask for some kind of retainer so that they can feel they're not being used by a 'chancer'. However, when raising funding, a real consultant will offer to REFUND THAT RETAINER out of the % BROKERAGE he charges, payable once he finds your Funding Source, and payable from initial disbursements. Retainers only cover part of the costs that a consultant has to pay while working on behalf of the Client. Their real wages come from the agreed upon Brokerage, received when they are successful on the Client's behalf.
Re: Quick Ways To Utilize SEO Effectively - 1. If you dont want too much competition from other SEO's, choose your keywords precisely.For example, Instead of keyword Loan choose keywords like Bank Loan, Equity Loan, Student Loan, Home Loan etc. Order of keyword also matter for search engines. Search engine treats ?Loan Equity? and ?Equity Loan? as different keywords. 2. Best seo practice is to get at least one of your primary keywords in domain or sub domain name of your website. You can use hyphens (-) to separate multiple keywords. For example: seo-service, seo-guidelines, free-seo each cover two keywords. 3. Get your second or third keywords in your directory name and filename. 4. Keep your webpage free from any syntax error, declare document type at the beginning and validate your HTML and CSS because search engine don?t like pages with too many errors. 5. Give a short Title in of your page in 3-9 words (60-80 characters) maximum in length containing your primary keyword. Remember it will be displayed in search results so choose wisely. 6. Try to include your most important keyword phrases in heading tags on your page if you can but keep in mind it should not be exactly same as title of your page. You can use (H1 H2 H3) tag for specifying anything important. To reduce size of heading use CSS. 7. Specify Meta keywords in heading of document. Limit it to 15 to 20 words. Although not all the search engines give importance but there is no harm doing it. Search engine like Yahoo still give it importance. 8. Write Your Meta Description tag attractive containing keywords because it will appear on the search engine result pages. 9. Use text for navigation menu instead of using images or Java scripts. 10. Try to include your most important keyword in hyper linked text and text and text that immediately precedes or follows the hyperlink. Do not use same keyword always use synonyms at few places. Just like instead of seo, I have use search engine optimization at many places on this page.
stock registration - robertj- Actually my offering is for a private placement of stock in my privately owned company. The documentation that I would send out to any interested party is approved by the SEC under the classification of "Reg D 504". It is the only private placement offering that the SEC allows for no registration requirements at all as long as I accept no more than $1,000,000.00 and the offering is good for only 1 years time. I assure you that we are all above board here at Phoenix Global Funding.
Top performing Franchise Loans - Evan, There are over 120 Franchises listed by the SBA with 0% Loan Failure from 10-1-00 to 9-30-05 these companies have at leat 10 loans disbursed. A number of the companies are Hotel/Motel Franchises so I listed them separately. Since all the ones listed have 0% loan failure I listed them descending by # of loans disbursed. Top 20 (by # loans Disbursed) 0% SBA Loan Failure (does not include hotels/motels) 1 21425--CULVER'S FROZEN CUSTARD 85 2 66910--PRIMROSE SCHOOL (DAYCARE) 76 3 14467--CARTRIDGE WORLD STORES 54 4 68021--QUIZNO'S SUBS 41 5 06560--AUNTIE ANN'S (SOFT PRETZELS) 40 6 29912--FIREHOUSE SUBS 35 7 31154--FOOT SOLUTIONS 35 8 52707--MEDICAP PHARMACY 35 9 09802--BEN & JERRY'S ICE CREAM 33 10 67759--COMFORT SUITES 33 11 70150--RITTER'S FROZEN CUSTARD 32 12 05650--ARBY'S 31 13 65160--PLATO'S CLOSET 31 14 67417--PUMP IT UP 30 15 69149--REMAX 30 16 71456--SALAD WORKS, INC. 30 17 76282--SONIC DRIVE-IN 27 18 84725--UNION 76 OIL 27 19 17049--CHRISTIAN BROTHERS AUTOMOTIVE 26 20 78950--SUNOCO SERVICE STATION 26 Top 10 0% SBA Loan Failure Hotel/Motels 1 10275--BEST WESTERN INN 104 2 67750--COMFORT INN 98 3 38605--HOLIDAY INN EXPRESS 87 4 36680--HAMPTON INNS 57 5 53165--MICROTEL 33 6 75385--SLEEP INN MOTEL 26 7 04160--AMERIHOST INN 18 8 69134--RED ROOF INN 13 9 17230--CLARION INN & SUITES 11 10 20715--COUNTRY INN 11


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Ten Things You Can Do To Be a Better Leader

Creating a Better Place to Work

How Promotional Caps became a Fashion Trend

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.