Financing Research And Development Tax Credits : SRED Finance Is The

Easy Part O !o"r R # D

The Short $And %ong & Ans'er is ( !es ( : SR#ED R#D Tax Credits Can )e
Financed
O*ER*IE+ , Inormation on inancing re"nda-le research and development tax
credits in Canada. SRED Finance loans moneti/e yo"r claim and provide .. cash
lo' today0
Financing research and development $R#D& tax credits in Canada is really the end to
a successful outcome of your SR&ED claim. There's been a healthy dose of ' no you can't
' when it comes to a lot of the changes in the program over the last several years. SRED
Finance loans are the positive monetiation of your claim ! in effect the easy part" #et's
dig in.
$ost %anadian business owners and financial managers who participate in the benefits of
the program probably though do realie that for a program that has been around close to
&' years there was probably some ' Times They (re ( %hanging' ) that were due .
*(pologies to +ob Dylan who it turns out wasn,t writing about refundable ta- credits)
.hile top e-perts and pundits maintained the program was ' bro/en ' it nevertheless
continued to fund +illions of dollars every year for thousands of firms enhancing their
business prospects through research. (nything that involves both provincial and federal
governments is of course going to evolve.
0articipants in the program of course /now the basics ! it's all about proving some sort of
technological advancement. 1ere it,s about documenting your spend on fi-ing '
uncertainty ' and trying to progress to ' technological advancement,
(fter your claim has been filed you're in a strong position to... you guessed it... wait" That
waiting can be totally eliminated by utiliing a SR ED bridge loan to monetie your
filing2 accessing your cash now... instead of wee/s2 months2 or longer3 based upon
whatever status your claim is in with %anada Revenue. 4n some cases that of course
might be financial or technical audit2 in other cases 5ust the bureaucracy that comes with
those nice fol/s in the government.
1ow then does a SR&ED loan wor/3 4t could not be simpler and in fact we maintain that
if there,s been changes to the financing of the program they have all n fact been 6uite
positive" SRED loans are financed as bridge loans. 7ou receive 8'9 of the total value of
the claim on approval of the loan. The /ey collateral of the loan is2 as you might surmise2
your SR ED.
:o payments are made for the duration of the loan2 and when claims are finally approved
you receive the balance immediately less financing costs which are meanine in nature
due to the ris/ profile of this type of financing.
Financing research and development ta- credits is a pretty easy decision ! it boils down
to;
Do you need the cash today and what use can be made of the funds3 4t's really the '
opportunity cost ' that you are loo/ing at. Funds of course can be used for what the
accountants call ' any general corporate purpose <. That of course includes operating
financing2 purchasing new assets2 or doing more R&D"
=h by the way2 even ne-t years claim can be financed today if you have a trac/ record or
can demonstrate a 6uality claim with your SR&ED consultant.
See/ out and spea/ to a tr"sted1 credi-le and experienced Canadian -"siness
Financing Advisor 'ith a trac2 record o s"ccess who can assist you with your
financing needs in research ta- credits. 4t's the ' easy ' part of research.
Stan Pro2op ! 3 Par2 Aven"e Financial :
http:44'''.3par2aven"einancial.com
+usiness financing for %anadian Firms 2 specialiing in wor/ing capital2 cash flow2 asset
based financing 2 E6uipment #easing 2 franchise finance and %dn. Ta- %redit Finance .
Founded >''? ! %ompleted in e-cess of @' $illion A of financing for %anadian
corporations . Ino 4Contact :
3 PAR5 A*E67E FI6A6CIA% 8 CA6ADIA6 SR#ED C%AI9 FI6A6CI6:
E;PERTISE
<ave A ="estion 4Comment On O"r )log Or Canadian )"siness Financing
Alternatives >
CO6TACT:
3 Par2 Aven"e Financial
South Sheridan E-ecutive %entre
>@B' South Sheridan .ay
Suite &'B
=a/ville2 =ntario
#CD 8DE
Direct %ine F ?BC &B@ G8C@
Oice F @'G E>@ >CG&
Email 8 spro/opH8par/avenuefinancial.com
? Canadian )"siness Financing +ith The Intelligent 7se O Experience ?
Stan Pro2op