Tweet

SRED Financing – SR&ED Finance Loans in Canada

Guest post by: Stan Prokop

Article Overview: Information on how SRED financing works in Canada. How Canadian business owners can get cash flow and working capital now for their SRED filings – don’t wait for Ottawa’s cheque – financing your claim now!

SRED Financing – SR&ED Finance Loans in Canada

SRED Financing is your firm's ability to take immediate cash flow and working capital advantage of our SR&ED tax credit claim. This program, (formal name = Scientific Research and Experimental Development) is bar none the best tax incentive program in Canada. Other than being taxable as income the refund you receive from the government is a non repayable grant. What could be better than that?

The irony in this great program is simply that almost 70% of companies in Canada that are eligible for the program do not even apply, let alone receive their funds!! It clearly is a source of untapped cash flow and working capital for your Canadian business that should be maximized to the hilt.

The other 30% of Canadian firms who use the program utilize it around their efforts to develop new products and services, building prototypes, and solving technological challenges.

So your Canadian controlled private company utilizes and files Sred filings. Did you know your claim can be financing immediately after you file it, literally the same day. Specialists that work as 'SR&ED consultants are experts in preparing your claim and in Canada your sred calim can be prepared at your cost - and you keep all the proceeds of the government grant, or alternatively, your claim can be done on a contingency basis, at no cost to yourself, and the consultant usually keeps anywhere from 10-30% of the total refund received.

However most Canadian business owners and their Sred consultants do not know that your claim can be financing, either during the preparation of your claim, (yes, before your file, if you qualify!) or immediately on filing of your claim.

Generally with this type of financing you receive immediately approximately 70% of the value of your claim. The other 30% still comes back you of course, but its simply a bit of a buffer to cover financing costs and any risk that a portion of the claim will be disallowed or clawed back .

When we think in terms of specialty financing we can categorically state that SRED financing is specialty financing in Canada. We urge clients to locate a business financing advisor who has credibility, experience and background in this area.

The SR ED financing process is not as complicated as you seem if you are well prepared and have access to good assistance. Its as simply as completing a basic business financing application, ensuring proper back up is in place and valid . That includes info on your company, the Sr Ed claim itself, your previous Sr Ed claims if you have filed previously etc.

The reality is that SR ED financing can be completed within 2-3 weeks of starting the process. The beauty of this type of financing is that no payments are made on the sred loan. In effect you can say that you have factored or discounted the Sr Ed claim. You are simply waiting for your cheque from Ottawa, and are making use of the working capital and cash flow now. That's a solid interim financing strategy for many firms, and that cash can be used for reduction of payables, investments in new equipment, additional staff, etc. The bottom line = any general worthwhile corporate purpose.

In summary, of course ensure you are taking advantage of Canada's Sr&Ed program. Once that is the case you have the option of financing your claim, allowing you to maximize the true benefits of the program, i.e. the recovery of your R&D expenses in the most time efficient manner possible. That's a solid financial strategy.

Related Articles
  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
  Get the Most From Your SRED refundable credit – Financing Your SR&ED claim with a SRED bridge loan
  Is It Smart To Finance Your SR&ED TAX CREDIT via a Sred Loan ?
  Great Reasons to take your sr&ed claim and access sred financing via specialize sred funding Canada Programs
  SR&ED FUNDING - 5 Key SRED Funding Loan Basics!
  The SR&ED Bridge Loan – The ‘ Hushed Truth ‘ On ( SR ED )SRED Tax Credit Financing Loans In Canada
  Sred Credits – How To Finance Your Claim for Immediate Cash Flow
  How Canada Sred Claims Deliver Cash Via Your SRED Financing Strategy !
  SR&ED Tax Credit Financing - 2 Things You Must Know
  SR&ED Tax Credit Financing - 5 Things You Need To Know
  Your Company Qualifies For A sr ed tax credit financing - Can you factor sred? Yes you can!
  Use Your sr ed (SR&ED ) tax credits & Finance For Cash Flow Today!
  How To Finance CRA Tax Credits For Sred for Cash Flow Now in Canada !
  Are SRED ( SR&ED ) Tax Credits Dead ? We Hope Not! SRED Financing For Your SR ED Credit Claims Is Alive & Well !
  How To Leverage SRED (SR&ED) Tax Credit Financing And Factoring for Cash Flow
  SRED Financing - Finance SR&ED Claims Today
  Finance Your Sred Claim Now And Take Advantage Of Your Grant today .
  How To Decide If Sred Financing For Your CRA SRED Is Right For Your Firm

Article Tags: factoring sred, sred financing, SrEd financing, sred loans



Related Forum Posts
grants for restaurants - Well friend I don’t have any idea about government grants for restaurants, but I will recommend that you may try on some banks who offer loans for small business where the government will have some guarantee. Beside that Restaurants business is very risky so some of banks who gave some Financing Loans they will look at on it if there is enough solid business plans.
New Small Business Topic - Hello everyone, I'm on the lookout for new topics to add to my site. We just launched a Franchising section and are planning Human Resources section. Do you have any thoughts for a new section? Here's a list of what we currently have: Angel Investors Branding Bank Loans Business Coaching Business Plan Franchises (New) Insurance Legal Marketing Public Relations Sales Small Biz Loans Venture Capital
Re: Finance is the primary requirement of business - [quote="rauljoseph":36x8dadn]Finance is very important in a business. It is all about managing the business' money and other assets. Finance includes the study and analysis of processes, financial institutions, markets and instruments that are involved in the transfer of money or anything that has a monetary value among consumers, businesses and government.[/quote:36x8dadn] Good point. I'll just add that if I was going into business for myself and could only have one skill it would be Sales & Marketing. You need to be able to create customers first and foremost. Finance is more of a support function for entrepreneurs.
Finance is the primary requirement of business - Finance is very important in a business. It is all about managing the business' money and other assets. Finance includes the study and analysis of processes, financial institutions, markets and instruments that are involved in the transfer of money or anything that has a monetary value among consumers, businesses and government.
Accessing the Canadian Market - Leo, an idea that came to mind is try to align yourself with Hispanic Organizations in Canada. This will build your credibility within communities and get more referrals. Not sure if you plan on being based in Canada or operate your business from Columbia but either way being in the web development arena allows you to work from anywhere. You can also search for opportunities originating from Canada thru elance.com, getafreelancer.com, freelance.com or rentacoder.com


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

Using Social Media Marketing

Secrets of Successful Business Partnering

How to Set Sales Goals that Work

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.