R&D Capital and SR&ED tax credit financing (Views: 48123)
Thu, 08 May 2014
Obtaining sufficient funding is one of the most pressing needs facing new business endeavours, so bringing funders and entrepreneurs together with a view to solving this issue continues to be the highlight of the Funding Roadshow in its 2014 edition. Although venture capitalists and angel investors are well represented, R&D Capital brings a unique and valuable service to the 2014 Roadshow - the financing of Refundable Tax Credits for Research & Development (R&D). For those not well-versed on the subject, Refundable Tax Credits are part of the Scientific Research and Experimental Development (SR&ED) Program, a federal tax incentive program administered by the Canada Revenue Agency (CRA), which is the largest single source of federal government support for industrial R&D. Among other incentives, the SR&ED Program gives claimants tax credits for their expenditures on eligible R&D work done in Canada.
In general, tax credits can only be used for the payment of taxes owed to the government. However, refundable tax credits are different in that eligible claimants still get the credit even if they do not owe any taxes. Financing refundable tax credits is R&D Capital’s one and only activity, their specialty and raison d'être. As a result, R&D Capital has become one of the foremost financial institutions involved in refundable tax credits in Quebec and the rest of Canada.
With offices in Montreal, Quebec City, and Toronto, R&D Capital provides a full range of services including technical, tax and legal support as well as sustained assistance with CRA audits. The company highlights three main factors that set it apart - its unparalleled expertise, commitment, and assistance, its policy of taking no stake in a customer’s business nor adopting a decision-making or operational role, and the requiring of guarantees that are covered exclusively with the refundable tax credits and not the assets of the business.
As a specialized financial institution, R&D Capital prides itself on its continuing efforts to develop innovative financial products and loans to finance refundable tax credits and assist Canadian businesses in their development efforts. The institution can analyze, approve, and disburse a loan within 10 to 15 business days after receiving the documents required to analyze and submit the financing application. Every effort is made to keep fees to a minimum with the added advantage that management fees are payable by the customer only after the service has been delivered.
However, speed and efficiency in obtaining financing are not the only advantages of working with R&D Capital. Ongoing assistance to customers includes legal support and a complete after-loan support system. More detailed information regarding the verification of a business’ eligibility, services offered, and up-to-date news and information can be found at the company’s website.
The 2014 Funding Roadshow provides an excellent opportunity for entrepreneurs and professionals involved in scientific research and experimental development (SR&ED) to benefit from R&D Capital’s expertise in the financing of Refundable Tax Credits for R&D as well as to obtain valuable information provided in accessible language.
By Stephen Hanley
shanley@fundica.com
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