The Canada Revenue Agency’s Scientific Research and Experimental Development (SR&ED) program was created to provide tax incentives to businesses of all sizes to conduct research and development. It is the largest federally funded program in Canada, helping companies develop their innovative products, ideas, and solutions. The SR&ED program is beneficial to society as it helps Canada grow economically and advances its global competitive advantage.
While this is an incredibly reliable funding program, it has a few drawbacks. The Canada Revenue Agency (CRA), which administers this program, is cautious with handing out taxpayer’s money, which is a good thing. However, because of this, refunds can take quite some time to be issued. These tax credits are paid after companies file their income tax return (T2 corporate income tax return and the related Federal and Provincial R&D schedules) at year-end, and even then, it can take months for the refund to be received.
If you have already qualified for the SR&ED tax credit, you are eligible to pursue SR&ED financing. This is one of the best options for businesses that want to access their SR&ED capital sooner.
Are you still wondering why you should choose SR&ED financing? Explore our top 4 reasons below.
1.) Access Your Funds Quicker
Timing is everything, especially in start-up environments. At Easly, we help you get access to your SR&ED capital faster, allowing you to accelerate your growth.
After you apply, we evaluate your application and work to approve it as quickly as possible. This process typically takes a week or less. Once you are approved, we can provide your first advance in as little as 72 hours.
2.) Receive Your Funding on Schedule
After your initial advance, you can receive additional advances each quarter. Once you prepare your quarterly reports, send them to us, along with your SR&ED expenditures, and we will evaluate them and calculate your additional available balance to draw from. At the end of the financial year, you file your T2 corporate income tax return and the related Federal and Provincial R&D schedules as usual. Repayment is made directly from the CRA refund once it’s issued.
3.) Non-Dilutive Capital
It can be difficult to obtain funding for your business without selling shares of your company to get it. This is why SR&ED financing is a great option; you don’t have to sell any equity in your company. None. You keep 100% of your business.
4.) Avoid the Headache Traditionally Associated With Securing Capital
Easly focuses on R&D tax incentives exclusively, and because of this, we have become a global leader in R&D tax credit financing. We make the process of receiving your funding as easy and as fast as possible. Avoid the headaches associated with securing capital from traditional lenders, and use Easly! You can receive your first refund in as little as 72 hours upon approval.
Easly – Your Partner in Innovation
The SR&ED program was created to help Canadian businesses flourish and make strides in scientific and technological research. At Easly, we have the same goals in mind to move innovation forward. We have provided over $35 million in funding to more than 75 innovative Canadian companies.
If you are planning to apply, or have already applied for the SR&ED tax credit incentive, contact us, and we can answer any questions you might have. We will work to get your funding sooner rather than waiting on the CRA to issue your refund. We want you to continue innovating without any interruptions!
