SR&ED Financing
SRED Financing
What is SR&ED Financing?
SR&ED Financing is an option for Canadian companies that are SRED eligible. SRED tax credit financing is useful in helping Canadian businesses in their development efforts.
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)
Benefits of SRED Financing
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: | ||
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 Fund SR&ED and OIDMTC programs |
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Leverage into emerging markets | |
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Meet payroll obligations | |
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Keep Vendors current | |
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Expand business operations | |
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Satisfy government tax obligations | |
R&D tax credit financing
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.