Stan Prokop of 7 Park Avenue Financial has a great article on the waiting period between making a claim and getting that first cheque. He talks about financing and how it can smooth out your cash-flow, reducing the strain of adjusting for finances that are not meeting monthly obligations.
The actual financing of your claim delivers a total cash flow benefit of typically 70% of that total claim. For example a 200k claim typically qualifies you for a SR&ED bridge loan of 140k. By the way , you can finance, at your choice, last years claim, this years filing, or even next years claim as you embark on further R&D. Typical claims deliver a refund approximating 30-40% of your total R and D spend. The folks known as ‘ SRED Consultants’ add credibility to your claim via their expertise, as well as their ability to maximize the full amount you are eligible to receive back.”
He also talks about factoring (or “selling”) the SR&ED credit with a loan that is designed as bridge loan where no payments are made – the loan is collapsed when you get the refund from the CRA.
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Photo Credit: Ryan McGuire