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What is SR&ED Financing?

Our SR&ED financing enables you to get a quarterly cash advance against your company’s accrued SR&ED tax credits as collateral, instead of having to wait until you submit your tax returns and get a response from the CRA.

As your company performs research and development activities over the course of the year, you are accumulating SR&ED tax credits and building up an asset. The problem is that you’re not able to unlock that asset until you submit your taxes and get your refund check from the CRA, which typically ends up being 9+ months from the end of your fiscal year.

Even the most efficient and organized financial teams do not typically have their books in order until mid to end of February following the end of the tax year, so you’re looking at February/ March by the time you file your taxes at the earliest and another 3-4 months by the time the CRA approves it.

SR&ED Financing comes in various flavours. Traditionally, lenders that provide SRED financing, provide a bridge loan from the time you file your SR&ED claim until you receive the refund check from the CRA. Our SR&ED financing, on the other hand, enables you to get a cash advance on your accrued SR&ED as early as 3 months into your tax year i.e. more than a year before you file your SR&ED claim.