SR&ED Financing
Maximize your SR&ED credits
and operating cash
Venbridge’s SR&ED financing provides you with cash when you invest in R&D activities. Several firms offer to finance your SR&ED after you’ve filed your claim, but what makes us special is that we can fund you before or after you file your SR&ED claim.
If you’re working with a SR&ED consultant, We are happy to work with them to quantify your SR&ED expenditure. If you’re not, we can combine the consulting with the financing so you don’t have to worry about filing a claim at the end of the year.
Why Venbridge
Fast
Receive funds in as little as 3 business days
Flexible
Timing of payments & duration of facility are flexible to to suit your business needs
Bundled SR&ED Consulting
We’ll take the work off your shoulders and maximize your government tax credits.
Benefits
- Loan size: From $100k to $1.5M
- Fast: Receive funds in as little as 3 business days
- Cost effective: There is a cost to the loan, but it is usually much less expensive than equity
- Non-dilutive: Don’t lose equity to grow your business
- Simple: Standard loan documentation that is easy to understand
- Interest is accrued and paid only when the loan is repaid
Flexibility
- Term loans are repaid when the CRA issues a notice of assessment. Revolving loans continue in perpetuity and allow you to borrow against both your filed and accrued SR&ED
- Light covenants
Criteria
- Minimum $100,000 SR&ED claim or $15,000 per month in SR&ED-eligible expenditures
- A two-year (or more) track record of SR&ED filing
- If you don’t have significant revenue, we want to see significant investment in the company
- SR&ED is refundable
- Venbridge has a first priority security on the SR&ED and a general security agreement
Get Non-Dilutive
Flexible Financing
The Venbridge team was incredibly fast at getting us a term sheet while other banks would take weeks or not at all. They were very responsive to questions with straight-forward answers, and clear and fair terms. We’ve now used Venbridge 3 times for tax credit lending we’ve received and successfully paid off.
Estimate your SR&ED claim
There are three questions that determine eligibility
- What scientific or technological uncertainties did you attempt to overcome?
- What work did you perform to overcome the scientific of technological uncertainties?
- What scientific or technological advancements did you achieve?
How to file a successful SR&ED claim
- Clearly define the answer to question #1 and demonstrate that the solution was not readily available.
- Document the steps and time you took to address the issue.
What can I use my SR&ED Financing for?
Each company we have worked with used their SR&ED financing to invest in a different area. You can choose to use the additional funds to:
- Re-invest in research and development
- Accelerate product development
- Launch your product in new markets
- Hire new employees and meet your payroll
- Take your sales and marketing to the next level
- Get into a stronger position while preparing for an equity raise
At Venbridge, we believe that you, as a founder, know where you need to invest better than anyone. This is why we place light covenants on our loans, to empower you to make the decision that makes sense to you and grow your tech company your way without losing equity.
SR&ED is your asset
SR&ED is one of a few assets a technology company can leverage for financing. At Venbridge, we understand the challenges of growing technology companies.
Cashflow is critical whether you are investing in R&D or expanding sales and marketing. Because the SR&ED program provides a refund, on average, 18 months after your first R&D expenditure, Venbridge will loan you the money to pay for the R&D engineers or expand your sales & marketing.
Considering the high cost of equity financing, debt financing is the perfect solution for many growing companies.
