What is SR&ED Financing?
Below are the fundamentals for determining a business eligibility for a loan regarding your R&D project
- Your business must meet the requirements as per Canada Revenue Agency (CRA) and/or the Agence du revenu du Québec (ARQ) or any other provincial revenue agency
- Your project(s) must be eligible for the refundable tax credits such as the scientific research and experimental development (SR&ED) or the Ontario Interactive Digital Media Tax Credit (OIDMTC)
CTAP is engaged with businesses in all phases of their life cycle. Our clients extends from early start-ups with limited resources and income to large businesses.
|CTAP SRED and OIDMTC clients may require increased cash flow to:|
Fund SR&ED and OIDMTC programs
|Leverage into emerging markets|
|Meet payroll obligations|
|Keep Vendors current|
|Expand business operations|
|Satisfy government tax obligations|
The SR&ED (R&D Tax credit) A.K.A Scientific Research and Experimental Development tax credit program can be a lucrative opportunity for Canadian organizations to take advantage of research and development activities in Canada. SR&ED contributes over $3 billion a year to eligible companies.
Tax credits such as SR&ED and OIDMTC take anywhere from 6 months to two years to receive any funds or credits. What if you need the money now, not 6 months for SR&ED and up two years for OIDMTC. You need the money now so you can invest into emerging technologies. That’s where SR&ED financing assists in receiving the funds upfront as oppose to waiting.
SR&ED financing helps SR&ED and OIDMTC eligible companies receive the money in one week.
Tax Credit Financing – SRED / OIDMTC
The benefits of SR&ED financing :
- SR&ED Financing is typically 75% to 80% of the tax credit refund with the remainder refunded when the claim is approved
- SR&ED Financing helps you to gain access to money promptly (within one week) to fund new R&D initiatives or other business operations
- SR&ED Financing helps tap into emerging technologies helping small to medium sized companies grow quicker
How an SR&ED Consultant Can maximize my R&D claim?
SR&ED consultants typically have arrangements with lenders to provide lower rates. Managing your SR&ED tax credit claim and providing 75%-80% of the SR&ED refund upfront can be beneficial for start-up, small- medium companies. Banks and other R&D financing lenders prefer SR&ED consulting firms with a success rate. SR&ED claims processed by professional SR&ED consultants with a track record and many years of experience in the industry may help strengthen your position.
Contact CTAP today at (416) 628-0874 for more information on cash flow funding programs available through SR & ED tax credit and OIDMTC financing.