A SRED Credit Loan : Financing SR ED Tax Credits Accelerates Your

Cash Refund
Breaking Nes :
Business !ner Finds "t Does "t #a$ To Finance A SR%ED Clai& '
!(ER("E) * "nfor&ation on financing + sr%ed, SR ED Tax Credits in Canada- A
SRED Credit loan allos Canadian .usiness oners to accelerate r%d ca/ital s/ent
on research under the Scientific Research and Ex/eri&ental De0elo/&ent
refunda.le tax /rogra&
Financing SR ED +SR%ED, tax credits is the finality that comes from filing a SRED
clai& in Canada. So the question that remains to be asked is ' Does it pay to finance your
refundable credit under Canada's most popular research refund program? Let's dig in.
In recent years the program has been a moving target by the government hose goal it
as to ma!imi"e and yet simplify the program in order for Canadian business to achieve
the benefits for hich the program as originally derived.
In order to understand the benefits of financing your S#$%D credit it's necessary to step
back and understand the origins and intent of the program. In reality the program has
been around for almost &' years no. (hile the name of the program is somehat
daunting )*SCI%+,I-IC #%S%.#C/ .+D %01%#I2%+,.L D%3%L412%+,56
business oners and managers simply call the program 1 S R E D 1'
,he actual preparation of your claim is very much tied to success in financing your claim.
(e ould maintain it's much easier to finance your refund than prepare it7 It is up to the
oner8manager to ensure that the refund claim they prepare is ' eligible ' under Canada
#evenue .gency +2CRA3, guidelines.
,hese days probably 99: of all claims are prepared by the folks knon as 1SRED
consultants 1 ; these people are typically steeped in either industry or actual program
e!perience< many of hom have orked for C#. in the past. . part of the ' turmoil ' in
recent times< some of hich has led to financing confusion of claims relates to ho these
consultants ho prepare claims are compensated. ,hat compensation relates to the
contingency fees that have consultants prepared those claims at their on cost< risk and
e!pense.
,hat compensation as one of the main reasons that the =ovt undertook a fe years ago
to fairly radically revamp the program. Some previously eligible e!penses ere cut back<
businesses must no identify ho if preparing their claim and ho they are paid< etc.
.dditionally some key aspects of the program ; i.e. the ability to claim capital equipment
purchases used in research ere eliminated.
It's pretty clear no that in order to be successful in financing S# %D ta! credits and
obtain a SRED credit loan that the quality of your claim is key. >usiness oners and
financial managers using qualified and credible 8 e!perienced consultant ill continue to
benefit from the program.
,hat brings us to our key question ; recogni"ing the benefits of the finance of a SR ED
refund- ,hat one benefit ; .ccelerated cash flo. Claims are typically financed at ?': '
loan to value '; meaning simply that for e!ample a @''k refund ould provide a loan of
AB'k.
Loans must of course be repaid7 < but S#$%D financing is done via a bridge loan ith no
payments required for the duration of the loans ; another key benefit . (hen your claim is
approved and funded by the govt you receive the &': remaining balance immediately<
less financing costs.
(hile the govt as busy re doing the program a bit the S# %D financier has also been
orking ; to add even more creative features to the cash floing of your claim ; these
include facilities such as a SRED credit line4 and even the financing of ne!t years
claim .. ,oday7
So< if you ant to be like or business oner ho has found it does pay to finance your
S#?%D refundable ta! credit seek out and speak to a trusted4 credi.le and ex/erienced
Canadian .usiness Financing Ad0isor ith a track record of success ho can assist
you ith your S#%D credit loan needs ith a viepoint to &axi&i5ing cash flo and
r%d ex/ense reco0er$ -
Stan #roko/ ; 6 #ark A0enue Financial :
htt/:77-6/arka0enuefinancial-co&
>usiness financing for Canadian -irms < speciali"ing in orking capital< cash flo< asset
based financing < %quipment Leasing < franchise finance and Cdn. ,a! Credit -inance .
-ounded @''B ; Completed in e!cess of 9' 2illion C of financing for Canadian
corporations . "nfo 7Contact :
6 #AR8 A(EN9E F"NANC"AL : CANAD"AN SR%ED TA; CRED"T L!AN
E;#ERT"SE
<a0e A =uestion 7Co&&ent !n !ur Blog !r Canadian Business Financing
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1 Canadian Business Financing )ith The "ntelligent 9se !f Ex/erience 1
Stan #roko/