Tweet

Sr&Ed Financing – Cash and Working Capital Now for your claim!

Guest post by: Stan Prokop

Article Overview: Information on how Canadian firms can monetize and immediate cash flow their SR&ED claim for immediate working capital . Turn benefits of this program into instant cash within a matter of weeks.

Sr&Ed Financing – Cash and Working Capital Now for your claim!

SR&ED financing (also known as SR ED / SRED Financing) is a very positive working capital strategy to monetize now your SR&ED tax credit filing.

Canadian business owners who have filed SR&ED claims in the past are already aware of the great aspects of this program, under which the Canadian federal and provincial governments provide a non repayable grant to your privately owned Canadian company for your expenditures relating to improved products and processes. The fact that you can recover a very significant portion of your salaries, materials, equipment and portions of overhead is in our opinion the best program in Canada as it relates to government actually really helping Canadian business.

Many clients approach us and ask about 'government grants and loans '. While there are of course many such programs out there the SR&ED program is real money under a much defined process. And it is non repayable - that's a good thing.

Let's assume you are aware of the program, have filed claims, or are filing your first claim. The claim is of course filed at the same time you are filing you year end tax return. The claim can be prepared by yourself, but in our experience 99% of claims are best prepared by specialized consultants of your accountant.

So you have prepared a claim and you have filed it. Of course you can wait for your government refund cheque, but that process involves of course also going through the review of your claim by Canada Revenue and in some cases having a technical audit of your claim. The government website indicates that depending on when you are filing, whether it is a first time claim, and if you are filing for multiple years that you can wait anywhere from 4 - 12 months based on some of the above noted factors. CRA in Canada has a specialized team that works in this area and clients tell us that the overall review of your claim is a fairly standardized process - naturally the overall quality and back up your provide to your claim helps finalize proper adjudication and approval .

Can you get cash and working capital now for your claim? Yes you can. Simply work with a trusted, credible and experienced business advisor in this area and immediate financing can be provided for your claim.

Clients ask what the basic process is over view to get your filed claim financed. It is a very basic process not unlike any standard business financing application. The basic steps are as follows "

-Complete an application - i.e. business details, your current company financials etc

-Provide details of your SR&ED claim

A term sheet can be provided in a matter of days, and claims are financed at generally 70% of the total value of what you have filed, i.e. the combo of the federal and provincial portions. Financing can take place, in our experience in a matter of 2- 4 weeks. You can of course use your SR&ED loan funds for any general corporate purpose, and no payments are made during the loan period. The loan period ends when you claim is processed by Ottawa and you of course receive the other 30% of the claim at that time, less any financing fees.

Consider maximizing the Canadian SR&ED claim by turning your filing into immediate cash flow. That is a solid working capital strategy that assists your firm in growth and competitiveness.

Related Articles
  Sred Credits – How To Finance Your Claim for Immediate Cash Flow
  How To Finance CRA Tax Credits For Sred for Cash Flow Now in Canada !
  SRED Financing - Finance SR&ED Claims Today
  Should You Finance Your Sred Tax Credits Via Sred Consultants On Your SR&ED Claim?
  SR&ED Tax Credit Financing - 2 Things You Must Know
  How To Leverage SRED (SR&ED) Tax Credit Financing And Factoring for Cash Flow
  How Canada Sred Claims Deliver Cash Via Your SRED Financing Strategy !
  Get the Most From Your SRED refundable credit – Financing Your SR&ED claim with a SRED bridge loan
  What If Your Firm Could Get Funding Today for Your Future SR&ED Tax Credit Financing ?
  Great Reasons to take your sr&ed claim and access sred financing via specialize sred funding Canada Programs
  A Working Capital Breakthrough – Financing Your SR ED tax credit claims ( SR&ED ) makes Sense!
  Your Competitors use SRED Financing to Cash Flow Their CRA SRED (SR&ed) tax credit claims for Working Capital
  Your Company Qualifies For A sr ed tax credit financing - Can you factor sred? Yes you can!
  SR&ED FUNDING - 5 Key SRED Funding Loan Basics!
  SR&ED Tax Financing - Cash and Working Capital for your R&D Credit
  Not Considering Sred Tax Credit Financing Could Be Costly
  SR&ED Tax Credit Financing - 5 Things You Need To Know
  SRED Financing – SR&ED Finance Loans in Canada
  Use Your sr ed (SR&ED ) tax credits & Finance For Cash Flow Today!
  SR&ED Funding – New Rules – SR&ED Financing – No Change!

Article Tags: cash flow, sred financing, sred loans, working capital



Related Forum Posts
How to valuate a business - Hi Garth - here is how we did it at Northern Crown Capital when I was helping them raise venture capital for Toronto-based entrepreneurs. Assume the start date is 2003 so 2008 projections are 5 years out: How Northern Crown Capital Valuates a Business 2008 Financial Projections Earnings Before Tax $5,865,000 Tax Rate 42% Taxes $2,463,300 Net Earnings $3,401,700 Amount Seeking to Raise Today $3,500,000 Discounted Value of Future Opportunity, 5 Years Out 2008 P/E Ratio 15 Value of Company in 2008 $51,025,500 Discount Rate Applied 30% Year 2008 $51,025,500 Year 2007 $35,717,850 Year 2006 $25,002,495 Year 2005 $17,501,747 Year 2004 $12,251,223 Value of Company at Investment in 2003 $12,251,223 Less: Investment Amount $3,500,000 Present Value $8,751,223 Discount for Risk & Private Company 40% Less: Discount for Risk & Private Company $3,500,489 Private Company Value $5,250,734 Present Value (What the Owner Keeps) $5,250,734 60.00% Financing (What the Investor Gets) $3,500,000 40.00% Total $8,750,734 100.00% I hope this helps!
Re: Kevin's Case Study #8 - How do you attract a finance expert? - I think the best way to find any reputable accountant would be by recommendation. If you cannot get one by recommendation then you should put those you narrow down your search to through an in depth prescreening process. Check the out their firm with BBB and make sure they are licensed & registered. Always check credentials and make sure they graduated from the schools they claim to have attended. Financing should be found in accordance to the type of financing you need and the type of business you are financing. You should always get prequalified before commiting to an application. You should seek out those financial institutions that specialize in the type of financing you are seeking and then check to enure they can finance your type of business.
Re: What is Your Favorite Thing About Owning A Business? - [quote="freddyb45":1t3lpfi8]For me it's the fact that all the time and effort you put in is worth a lot more, due to it making you "business" more profitable. Working for yourself is also a positive, although employing people you can trust is quite different.[/quote:1t3lpfi8] I like this idea. Working for yourself means you are investing in your own future, not someone else's, although there is value in working for someone else first to gain experience and confidence. Working for yourself does not automatically mean success, fame and fortune. For most entrepreneurs, it takes much work and dedication to get to the point of financial success and comfort - sometimes years. But the benefit is, again, you know you are investing in yourself and building equity for your own future. GT :-]
Re: Improving Cash Flow - Thanks for your information. guide on how to avoid the problems of over trading. <-- Where is this guide? Any URL? guide on debt factoring and invoice discounting: the basics. <-- Where is this guide? Any URL? I just want to learn more about this. I am also looking for a good article on: What exactly is Cash Flow? Ways to improve cash flow at individual level and organizational level? I think it is a problem of thinking and mind sets problem. If we can change the way of spending, we can have more Cash. Robert
Re: How Can I Make Money Out of This Need? - This is information age and people pay for information. what is standing between then and getting their refund is lack of information. If no one inform them the money will be there unclaim for many years. You can create a report on it and sell it to them. Your report could include how to claim their refunds and where to claim it. This is my own opinion


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

How do you keep it together on a daily basis?

Promoting your company and self with verve

Igniting Your Unstoppable Business Destiny

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.