Effective Sred Tax Credit Financing – Using A SR ED Loan For The Right Reasons

Would your company like to make the most out of a good thing in business - Effective sred tax credit financing, we think you'll agree, does just that. Contemplating a sr Ed loan for the right reasons to us just makes solid business sense.

Lets cover off exactly what you need to know about maximizing your participation in whats known as the Canadian governments Scientific Research and Experimental Development offering - we in the layman’s world call it the SR ED , or SR&ED program . Leave it to the government to use that formal terminology!

Whether you have never heard of the program at all, or are a first time claimant for your share, or , if you are one of the lucky ones and have been filing for years for your share of the 3 Billion dollar pie you are clearly in line to hear some great news . What is that news? It's simply that for the right reasons your ability to cash flow, monetize, borrow against, factor, whatever you want to call it , your sred tax credit can be an effective way of increasing your working capital and cash flow .

Could it be any simpler? Your company is eligible for a refund on expenditures that have been verified under the program for R&D expenditures. Thousands, and we mean thousands of businesses, many of them your competitors, are receiving cheques from the government, that are non repayable for your investment in R&D processes, products and services.

If you are not missing out on filing your claims are you missing out on effective sred tax credit financing. You just might be. We strongly believe that utilizing a sr ed loan for the right reasons is a great way to stay one step ahead of the working capital game .

Let’s examine why effective sred tax credit financing via a sr Ed loan makes sense. Generally it only makes sense under one single condition - its that your firm needs cash flow and working capital for payables reduction, further investment, equipment, and general operating expenses .! We are quite sure you are already in that group!

Monetizing your sred tax credit is simply borrowing against a rebate that is coming to you from the federal and provincial government via your sred claim. Is there anyone in the room that disputes funds today are better than funds tomorrow? We don’t believe you will argue with us on that.

If you are part of the program, or considering the sr&Ed program from a participation point of view you should consider financing your claim after it’s completed. In actuality you can finance it immediately after it’s filed, or in many cases, as you are expending funds!

SR&ED financing is simply the monetizing of that account receivable (that’s really what your sred claim has now become) to use the cash for any worthwhile corporate purpose. A sr ed loan for the right reasons allows you to increase cash flow , and simply stay more competitive - which you probably already are given you are investing in r&d type work .

Effective sred tax credit financing works best when its done quickly and efficiently at competitive rates - no payments are made by your firm and the proceeds of your sr ed loan are netted against the final cheque your firm is due .

Want to wait 3, 6, or 12 months for your sr&Ed cheque. By all means do - but remember your competitor got their cheque today by effective use of a sr&Ed tax credit finance strategy. That’s something to think about.

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Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/sred_tax_credit_financing_sr_ed_loan.html

Sr ed Tax Credit Financing – Your SR&ED Loan is Approved

Is it possible to combine the benefits of sr ed grants with the benefits of sr ed tax credit financing for a sr&ed loan that makes sense? It sure is and let’s helps you understand some of those basics.

If you are either filing a sr&ed claim for the first time, or if you're a repeat "offender" - translated = you have experienced sred claim success for years... then why not combine financing power with your claim and recoup your funds faster . In today’s worlds it seems always about speed it seems, so if the Canadian government is paying you to do research , and you can recoup and deploy those funds even faster by financing your claim, well ,, why wouldn’t you .

Our focus here in our shared information is financing your claim... so we assume you are fully aware that if your firm is developing new products and services, manufacturing prototypes, improving processses, developing software, advancing mfg ... well .. We think you get the point! Which is simply your firm is a poster boy for sred financing and a sred loan and you should be filing to recover in the range of 35-40% of all your expenses.

Your credit is a non repayable credit, so your ability to monetize your claim and get that cash flow working into your firms operating cycle is key.

So how can those sred tax incentives are monetized? Simply speaking it’s the ability you have to use your sred receivable, because it is a receivable, and finance it in a manner that you would just as if it were any customer - except that in this case the customer is a pretty good paying client... ie the federal and provincial government.

Sound complicated? Nothing could be simpler. Let’s cover off the basic process and focus back in on those benefits.

To finance a claim you have to have a claim. Makes sense so far, right. Claims can be prepared by either yourself or someone that is commonly called a sred consultant. We wouldn’t be perfectly honest by telling you that claims prepared by outside respected consultants carry far more weight than claims prepared internally by yourself of your accounting firm. It’s simply a case of relying on expertise.

After your claim is filed you complete a simple financing application consisting of info about our firm, your current financial situation, as well as providing the actual technical claim and tax filing copy. SR ED tax credit financing relies on your claim being filed- in certain special situations you can actually finance the claim pre-filing - but we'll leave that one for another day.

The ability of many firms, particularly start ups, and tech firms that burn through a lot of cash , to recoup sred funds is a key driver in the whole sr ed loan process . That cash flow in many cases is seen by our clients as the life blood and in some cases the largest amount of cash they will receive in the current year.

Many business owners don’t know that you can file for two years, which of course simply means you’re doubling the amount of cash you can claim.

Many smaller filings these days for sr&Ed claims seem to be coming thru faster in the form of cash refunds... if you have a larger or first time claim it can take many months, potentially calling for a techncial review of your project.

That’s where a sr Ed loan and sr Ed tax credit financing come in, because 70% of the sr&Ed claim is generally advanced in the form of a bridge loan. You make no payments on the loan and the loan is in effect settled when your final refund comes in from Ottawa .That allows you to utilized those funds for working capital, equipment, on going sr ed work , and just any general corporate purpose .

Speak to a trusted, credible, experience Canadian business financing advisor in the sr Ed tax credit financing area. This will increase your chances of a successful and timely approval, with most financings for a sr Ed loan happening within a 30 day period. That’s a sr&Ed cash flow optimization strategy that makes sense, right?

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Stan Prokop - founder of 7 Park Avenue Financial

http://www.7parkavenuefinancial.com
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 6 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/sr_ed_tax_credit_financing_sr_ed_loan.html