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Sr&Ed Factoring – Cash & Working Now for your Canadian SRED Claim
| Guest post by: Stan Prokop |
Article Overview: An overview of the benefits of SR&ED factoring or financing for Canadian firms who wish to turn their SR&ED credit into cash now for working capital and cash flow purposes .
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Sr&Ed Factoring – Cash & Working Now for your Canadian SRED Claim
Sr&ed Factoring, or in effect the financing of your
Canadian SRED claim is a unique and innovation method of financing your tax
credit . For many Canadian business owners and financial managers the amount
that their company has invested in research and development of innovative products and services represents
a significant amount of their budgets.
Naturally Canadian business appreciates the amount of funds
that the Canadian government refunds as non-repayable cash grant for your firms
investment into product and technology advancement.
When we meet with customers who wish to finance, (factor)
their SR&ED claim it’s all about timing. They want to get the immediate
benefit of that cash flow and working capital back into their firm. The
financing of the claim is the way to do that – it’s a case of immediately
receiving the cash refund for your claim as opposed to having to wait anywhere from
several months to a year to get the refund . And if your firm is filing
a SrEd claim for the allowable period of two years prior well that cash flow
and working capital has now doubled and provides a significant amount of cash
flow if you finance the claim today.
As we have stated the whole scenario of financing a Sr&Ed
Tax credit is essentially the process of factoring, or ‘discounting the claim
‘. We would point out that the whole
process is applicable to film tax credits also, which a growing and robust
industry is given that the government has heightened its grants in many areas
of film tax credit financing.
So whats involved in monetizing your SR&ED claim? And perhaps as important, what amount of
funds can you get today for the claim. We have stated the claim is discounted
or factored - business factor because they need immediate access to cash when
current assets such as accounts receivable cannot provide cash flow in a manner
that allows your firm to have the working capital it needs. In some cases the
factoring of receivables or a SR&ED claim may be one options for cash flow
generation, however in a great deal of the cases it in fact is the only option
. That is because Canadian banks are reluctant to finance SR&ED claims because of the partial
uncertainty in the final approval of the claim, and the reality is that many
Canadian small and medium companies currently are challenged in obtaining all
the business financing they need.
How much can I get? Is
the typical question asked by Canadian business when financing their SR&ED claim?
The answer is typically 70% now, and generally financing is structured along
the lines of no principal or interest payments on the SRED loan financing until
the government approves and funds the claim. At that point your firm gets the additional
30% of the claim, less financing costs associated with the claim which vary
based on size of claim, overall financial situation of your firm, etc.
We want to clearly point out that no company should be deterred
from financing a claim because they are in a pre- revenue state, or if they
have other financial problems or challenges, as the essential security of your
SR&ED itself is the prime collateral for the financing.
Talk to an expert in SR&ED financing and determine if
you’re a solid candidate for immediate cash flow and working capital via this
great Canadian government program.
Sr&Ed Factoring and Financing – Cash Today for your Canadian SRED Claim
How To Leverage SRED (SR&ED) Tax Credit Financing And Factoring for Cash Flow
How To Finance CRA Tax Credits For Sred for Cash Flow Now in Canada !
SR&ED Tax Credit Financing - 5 Things You Need To Know
Not Considering Sred Tax Credit Financing Could Be Costly
Sred Credits – How To Finance Your Claim for Immediate Cash Flow
How Canada Sred Claims Deliver Cash Via Your SRED Financing Strategy !
SR&ED FUNDING - 5 Key SRED Funding Loan Basics!
Should You Finance Your Sred Tax Credits Via Sred Consultants On Your SR&ED Claim?
What If Your Firm Could Get Funding Today for Your Future SR&ED Tax Credit Financing ?
How To Decide If Sred Financing For Your CRA SRED Is Right For Your Firm
SRED Financing - Finance SR&ED Claims Today
Get the Most From Your SRED refundable credit – Financing Your SR&ED claim with a SRED bridge loan
Your Company Qualifies For A sr ed tax credit financing - Can you factor sred? Yes you can!
SR&ED Tax Credit Financing - 2 Things You Must Know
SR&ED Funding – New Rules – SR&ED Financing – No Change!
Financing Sr ed Credits – Access Working Capital via SR&ED Discounting
Your Competitors use SRED Financing to Cash Flow Their CRA SRED (SR&ed) tax credit claims for Working Capital
Use Your sr ed (SR&ED ) tax credits & Finance For Cash Flow Today!
Great Reasons to take your sr&ed claim and access sred financing via specialize sred funding Canada Programs
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About the Author: Stan Prokop RSS for Stan's articles - Visit Stan's website Stan Prokop is the founder of 7 Park Avenue Financial . The firm specializes in business financing for Canadian companies in the areas of working capital , asset based lending, SR & ED tax credit financing, equipment financing, franchise financing and banking .
Click here to visit Stan's website   Making The Biggest Leasing Mistake Ever Not Offering Financing For Customers Customer Financing Programs Canadian Vendor Loans Work Asset Based Lending What you wanted to know and were afraid to ask Why Does My Lender Need a Business Plan Good Bye Failure Hello Success In Franchisee Financing In Canada Its All About Who And What In A Franchise Loan Canadian Film Tax Credit Financing |
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