Your company must be quick thinking and moving, with an eye always on the current market but also on what is coming tomorrow. The company must hire and retain quality employees who are passionate about success and who work together as a highly efficient unit that is prepared to meet the challenges that will constantly present themselves. The business must also be mindful of the changes that technologies like the Internet and mobile have brought to industry. They must take advantage of these new technologies or risk being put at a disadvantage by competitors who embrace them and utilize them for competitive leads.
Operating a Canadian business and achieving success today is harder than ever. The company must have continuous access to capital resources, because without it, every aspect of the company including research and development, marketing and sales become crippled and incompetent at meeting company goals. A business must set up funding channels in advance, with some being quickly accessible in anticipation of last second company needs. Along these lines a primary source of potential funding that Canadian companies should explore is how to obtain money from SRED Financing immediately.
The Scientific and Experimental Research Program (SRED)
For businesses in Canada, there are a number of funding possibilities to explore. One that should be a first option, and is yet too often overlooked is the Scientific Research & Experimental Development incentive (SR&ED,or commonly called SHRED). This CRA administered program is a federal tax incentive scheme that was developed to encourage all size Canadian businesses to both conduct research and development and to create new or improve existing products, processes, principles, methodologies or materials. SRED is the largest single source of federal government support for industrial research and development in Canada.
SRED is paid as refundable and non-refundable tax credits to a company and can recover up to 64% of the money spent depending on the type of activities carried out and where the business is located in Canada.
SRED is available for companies in any industry and provides tax incentives for a variety of your company’s activities. The program’s rewards are typically success driven meaning your activities must advance the understanding of scientific relations or technologies, address scientific or technological uncertainty, or incorporate a systematic investigation and show results which can include:
- When your company makes an attempt to solve a technological challenge Facing it or others;
- When your company takes technical risks to advance and improve company processes, products or services related to the development of your business;
- When your company seeks to achieve technological advancement for the creation o new materials, devices, products, or processes, or improve existing ones;
- When your company conducts applied research to advance scientific knowledge relating or not relating to a specific practical application;
- When you company provides support work in engineering, design, operations research, mathematical analysis, computer programming, data collection, testing, or psychological research for eligible areas of research and development.
The process is detailed and requires forms being filled in properly and the correct back-up data to be provided. Everything must be submitted to the CRA and there is a wait of up to three months before you are approved.
The way that this approach can provide capital for businesses who need it quickly, is by working with a company like RD Capital who provide quick loans against SRED tax credits. Upon approval of their loan application, they will immediately provide the loan to a company giving them immediate SRED financing.
Many companies are in a position to take advantage of the SRED program but are not sure of the process or the parameters. RD Capital can provide detailed information about the program, and give you insight into whether your company will likely qualify.