First off, the Scientific Research and Experimental Development (SR&ED) program is a multi-billion dollar federal and provincial tax incentive program offered by the Canadian Revenue Agency (CRA) to support and encourage Canadian businesses to conduct research and development (R&D) in Canada. If you’re a tech company or a startup this means you. You probably already knew that, though…

So, what’s SR&ED Financing?

SR&ED Financing is a type of loan designed to provide businesses that have qualified for SR&ED tax credits with working capital. The size of the loan is based on their tax credit amount. Basically, you are borrowing to get your SR&ED refund early so you can  put it to good use instead of waiting out CRA’s refund process.

True story: Receipt of funds from filing of a SR&ED claim usually takes anywhere from 30 to 180 days (that’s a long time), and wait times for these refunds may affect your cash flow. With SR&ED Financing, you can get access to the cash that’s coming your way now. It’s basically an instant refund.

Typically businesses will get financed for between 70% to 80% of their expected SR&ED claim. When you get your cash early, you can use it to fund your business and/or invest in R&D without diluting your equity or spending your time fundraising.

Often funders will loan against accrued SR&ED. Therefore, if you have finished a portion of your fiscal year, you can receive a loan based on the estimated amount of SR&ED eligible activities to date.


To learn about how to obtain SR&ED financing from Venbridge, please contact us today.