“You have to spend money to make money”, or so the saying goes. What if we told you that by reinvesting your money back into R&D, you could get more from the government and get it earlier than you thought.
Make more from your SR&ED refund
By accessing your Scientific Research and Experimental Development (SR&ED) annual refund using Easly’s Capital-as-a-Service financing solution, you’re turning your Canada Revenue Agency (CRA) refund into smart money. Receiving Easly Advances means you avoid a long wait for your SR&ED refund and get assured cash flow for your business.
There are clever ways you can use Easly financing to accelerate your R&D and increase the value of the SR&ED program. Easly’s SR&ED financing solution doesn’t have to be a once-a-year surge of capital. By using an Easly Advance every quarter, you can boost your R&D investment by 80% over the course of the year and transform your SR&ED refund into strategic capital to grow your business.
How it works
Quarterly financing enables businesses to increase their R&D investment by up to 80% in one fiscal year without any additional capital. Using Easly financing on a three-month cycle helps your business unlock greater value from your SR&ED refund.
Here’s how it works: You apply for your SR&ED refund from the CRA once a year; depending on your circumstances, your business recoups up to 65% of your R&D investment. Easly lets you access 75% of this refund sum earlier, which can then be reinvested back into R&D in the same year to get a larger SR&ED refund at year end.
For example, in Q1, you spend $100 on SR&ED eligible expenses. Easly Advances you approximately $48 (100 x 65% x 75%) at the end of the quarter, which is now additional capital that you can reinvest into R&D. If you continue doing this every quarter till the end of the year, you can stretch that initial $100 of R&D budget into $180 of investment into R&D over the year.
Here’s another way to look at it: If you need to spend $180 in R&D during the year, all you need is $100 in Q1 and Easly Advances to get you the rest of the way there.
Compounding benefit of your R&D investment
Every dollar of an Easly Advance that you reinvest back into R&D earns you additional tax refunds. This extra capital for R&D quickly adds up. By the end of one year, your business can have as much as 80% more to invest in R&D without raising a cent of fresh capital. In short order, your business can pivot from surviving to strategizing.
Apart from the obvious benefits of more capital and smoother cash flows, there are a host of other upsides for your business. More money for innovation could help your business steal a march on the competition by getting your product or service to market faster. Another major plus is that Easly financing is non-dilutive. This means you don’t have to give up a portion of your business in return for capital. Most importantly, your quarterly financing from Easly arrives at exactly the right time to keep your cash flow steady and your R&D engine running.
Who can apply for Easly Financing
If you have already had your first Easly Advance, it is a quick and easy process to access quarterly funding. When the end of your next fiscal quarter rolls around, log in to the Easly Customer Portal, and select “Request Funds”. Follow the simple steps and then relax and look forward to receiving new capital in the form of your next instalment of Easly financing (within a week). At the end of the fiscal year, complete your taxes as usual and include your annual SR&ED program claim.
If you have not had an Easly Advance before, check whether your business is eligible for the SR&ED tax incentive. To find out more about whether your R&D qualifies for the SR&ED program, read our helpful blog on this topic. A good rule of thumb is if your business is eligible to apply for a refund under the SR&ED program, your business is eligible to apply for Easly SR&ED financing, including our quarterly option. If your business qualifies for SR&ED, visit our “Get Started” page to fill out your application.
Getting started is easy
Our Capital-as-a-Service platform is quick and easy to use. Once we’ve received your completed application, we can fund you within two weeks. Personal guarantees are not required. We will require a priority lien over your SR&ED refund. There are no application fees or monthly repayments during the loan term. We get paid directly from the CRA SR&ED refund. We designed it this way so that Easly financing is always cash-flow positive. With Easly, businesses benefit from a seamless financing experience from end-to-end.
Get in touch today
Whatever your industry or company size, Easly’s SR&ED financing can help fuel your business growth by leapfrogging your quarterly R&D spending. Start your application, or simply log into the portal if you are an existing account holder. And if you have any questions along the way, we are here to help.
Fill our Contact form and we’ll get back to you with answers.