FAQs about Easly’s Capital-as-a-Service tax incentive and grant financing platform:
How do I apply?
You can apply here by filling out our simple application.
What are the eligibility criteria?
Any company that expects to receive a SR&ED refund is eligible. Approval is determined based on several factors ranging from your overall financial health to the strength of your claim.
What information is needed to apply?
Basic company information, financial information, and information about your SR&ED claim and tax history.
How quickly will I receive funds once I’m on the Easly Platform?
Qualified applications can be approved in as little as two weeks. Funds will be released in as quickly as a few hours after an application is approved and confirmed. The funds usually appear the next business day but may take up to three business days to process.
I’ve had my claim denied/reduced from the CRA, am I still eligible?
Yes. We review every company on a case-by-case basis.
Will my personal credit score be affected by applying?
No.
Is a personal guarantee required?
No. Our loans do not require a personal guarantee.
What security is required for financing with Easly?
We take a priority lien on the proceeds of your SR&ED tax refund and subordinate on all other assets.
What if I have other secured creditors?
We only require a priority lien on the proceeds of the SR&ED refund. We have experience working with major lenders in Canada.
How does repayment work?
We get paid when you receive your SR&ED tax refund.
What if my claim is delayed due to an audit?
We review any potential delays (such as a technical and/or financial audit) and grant extensions on a case by case basis.
What if my claim is denied?
In the unfortunate event, your claim is denied, you will still owe the loan amount.
Are there termination fees if I want to stop drawing funds?
No, you can terminate the Easly Platform agreement at any time at no cost as long as your outstanding balance is zero.
How do I draw funds each quarter?
At the end of every quarter, we calculate your available balance based on updated financials and relevant expenditures, which you can then use to request an additional draw.
How much funding do I have access to?
The amount of funding is based on the size of your SR&ED expenditure for the relevant period.
Are there any restrictions on the use of funds?
There are no restrictions on the use of funds received from the Easly Platform. Many of our SR&ED customers inject the funds right back into R&D.
SR&ED
How do I apply for the SR&ED program?
To make a claim, you must file a T2 corporate income tax return and the related Federal and Provincial R&D schedules. These schedules vary by province. The CRA website has more information.
Do I need to use a professional service to file a SR&ED claim?
Many companies look to accounting firms and specialty SR&ED consultants to prepare their SR&ED claims (Form T661). Filing a SR&ED claim can be a daunting task. These professionals can help both young and mature firms navigate the process. Easly can finance all claims, whether they’re prepared by professionals or not. We recommend working with one of our trusted partners for the best rates and outcomes. Please contact us for more details.
What types of businesses are eligible to claim SR&ED tax credits?
Any business that spends money on novel research or is advancing its understanding of existing technology in order to improve or develop new materials, devices, products or processes may be eligible to claim SR&ED.
What types of expenditures can be claimed?
Salaries and wages, materials consumed or transformed, sub-contractors, and some 3rd party payments associated with the SR&ED activities may all be acceptable SR&ED expenditures.
How much can I get back?
The federal government offers a 35% investment tax credit to Canadian-controlled private corporations (CCPCs) for the first $3m of eligible SR&ED expenses. Your company will likely qualify for provincial investment tax credits as well. These can vary substantially by province. Our SR&ED Calculator is a handy tool that can help you estimate the value of your refund.
When is the deadline for filing my claim?
You can file your SR&ED claim up to 18 months after the end of your fiscal year. If your fiscal year ends December 31st, 2019, your claim is due before June 30th, 2021.
