SR&ED tax credit loans
Growth now, not later.
What is the R&D tax credit?
The SR&ED investment tax credit (commonly also referred to as shred credits) is an incentive program run by CRA that entitles companies to claim 35%+ of their eligible expenditure in the form of a tax reduction or a cash payout. When provincial programs and overheads are included, cash refunds for CCPC’s can be more than 55% of expenditure.
Eligibility
Canadian Controlled Private Corporation’s (CCPC’s) that have invested in R&D could potentially be qualified for a refund 55%+ of relevant expenditure. Find out if your company is eligible. Find out if your company is eligible.
Get StartedWhat is a SR&ED tax credit loan?
A SR&ED loan is an innovative financial instrument that allows a company to use its future SR&ED tax credit refund as collateral for an affordable loan. The SR&ED tax credit is a sustainable source of operating cash for many Canadian firms, every year. Though it has been reliable for decades, one of the problems with the scheme is that the funding is quite slow to materialise. Many companies end up spending many months, sometimes even up to a year, waiting for CRA. With SR&ED Finance, they can access that funding in a couple of weeks. With a new funding timeline, you are able to grow faster than their competition, and gain the advantage.
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The funding feedback loop.
SR&ED Advance Funding can act as a virtuous cycle. As a growing, research or technology-focused company, chances are you will continue on your path of technology investment. Often, the SR&ED financing you receive will flow back into more R&D. As an example, if you use the SR&ED loan to hire an additional programmer, around 33% of their wages will add to a larger SR&ED tax credit at the end of the financial year.
This can lead to mitigated fees or potentially to a net benefit after financing.
What do you need to apply for an SR&ED tax credit loan?
