What is SR&ED Tax Credit Financing?
Canadian businesses conducting eligible R&D work earn refundable SR&ED tax credits as they spend on a wide range of eligible expenditures. They can then claim these R&D tax credits annually by submitting a form to the CRA. The CRA review process can take a few months, after which, if the claim is successful, a cash refund will be issued to the company.
A lump sum annual refund is helpful but it doesn’t address the ongoing cash burn needs of a growing company. This is where Easly’s SR&ED financing can help.
Easly SR&ED Advances allow companies to use their earned SR&ED tax credits to secure non-dilutive working capital throughout the year instead of waiting months for the CRA refund. Easly provides advanced based on earned credits – this means you can draw down multiple times a year as you earn more credits, creating an optimal cash flow solution.
SR&ED financing is more than just a source of non-dilutive capital; it’s a strategic financial tool that empowers you to take control of your cash flow.