Should you, or shouldn’t you? We’re talking about your SRED tax credits, filing the actual SRED claim for financing purposes, and the role of ‘SRED consultants’ in the whole process.
A basic primer never helps, as we still today run into many clients that don’t even know what the whole cra SRED program is, let alone use it, and let alone use the proceeds for working capital financing.
If you’re a speaker they say it’s good to know about your ‘ target audience ‘. Well, our target audience is very clear! Whether you are a start up, or an established Canadian company, and if you are spending any money at all on research and development costs, then, guess what – you’re our target audience today.
And, if you can utilize the program the ability to finance your claim for immediate cash flow and working capital improves your balance sheet immediately, certainly from a liquidity viewpoint – and cash is always king we are told.
Let’s cover off who those SRED consultants are, because they are a key process in the filing, and to a certain degree, financing of your claim. That claim of course allows you to get your firms share of the 3-4 Billion dollars of annual cheques that are written to your competitors, and our goal with our information is to get that funding into your hands as soon as possible.
SRED consultants are private individuals and firms, somewhat boutique in nature, that specialize in writing and filing your SRED claim. Filling out any government form for us has always been a daunting task, but to miss the opportunity in a SRED filing and getting approval isn’t just embarrassing, it could cost your firms thousands, or tens of thousands of dollars in missed refunds. So these consultants tend to be very experienced in SRED claim process, and have the ability to maximize your SRED tax credits to bring you the most dollars possible.
Who isn’t interested in a non repayable credit from the government? Certainly no one we speak to. So we think you would agree that the ability to ‘ get with the program ‘ so to speak, when it comes to a SRED claim is beneficial to any firm. And by the way, only privately owned Canadian firms can benefit in this manner from SRED tax credits.
So your firm is eligible – you’re either a first time filer, or you have been doing this for years. What else could you possibly benefit from in this program? The answer is, we think, that you should consider financing your claim. Why does that make sense? To us maybe its too obvious, but the ability to cash flow your SRED tax credits into immediate working capital puts you one step ahead of the game when it comes to your business growth.
Financing the claim is a very simple process. Locate a Canadian business financing advisor that is trusted, credible and experienced in SRED tax credit financing. That person will help you understand the basics of the financing – which is essentially a bridge loan collateralized by your claim. In effect you’re financing or monetizing a government receivable. Your receive approximately 70% of the valued of your filed claim, now, which we think is better than waiting, 3, 4 or even 12 months for your claim to be approved and to receive your funds via the government.
Claims can be financed within a matter of weeks, and the process is simply a business application supported by the information around your SRED claim. Having your claim prepared by one of those qualified SRED consultants just simply lends credibility to your filing. So, should you or shouldn’t you. Our recommendation – file a SRED claim if your are eligible. Finance it if you want cash flow and working capital now. It’s as simple as that.