With so many tax credit, grant, and cost recovery options available to companies, there has never been a more lucrative time to boost a company’s funding and financing. With support from R&D and digital media tax credits or grants in hiring, training, and capital expansion, companies can access a number of versatile programs to fit their growth and project needs while building their cashflow strategy.
Scientific Research and Experimental Development (SR&ED) and the Ontario Interactive Digital Media Tax Credit (OIDMTC) are two important programs that should be reviewed by every company. The SR&ED program is a federal tax incentive, administered by the Canada Revenue Agency that encourages Canadian businesses of all sizes and in all sectors to conduct research and development in Canada. The SR&ED program is the largest single source of federal government support for industrial R&D, providing over $4 billion in investment tax credits to over 18,000 claimants each year. The OIDMTC is a refundable tax credit for corporations developing interactive digital media products. The benefit ranges from 20 to 40% of eligible labour, distribution and marketing costs.
Since 2000, Business Improvement Group has grown to become one of the largest full service Scientific Research and Experimental Development (SR&ED), Digital Media and grant consulting firms in Canada. Over these past 20 years in the industry, the Business Improvement Group team has consistently met with companies looking for access to cash flow and requesting information on grants and other funding opportunities. They were also meeting with prospective clients who were already filing for SR&ED and grants but were interested in what other opportunities were available to them, so they knew they had to do more and look for new and innovative ways to improve cash flow for customers.
SR&ED Financing is a great solution for many companies that need to improve their cash flow and reinvest their capital quickly to stay ahead of the curve. Instead of waiting for your fiscal year-end, claiming SR&ED and waiting months for the CRA to review your claim and issue a refund, you can choose to finance your claim from day 1. This gives you the opportunity to receive quarterly, interest-free cash disbursements that get repaid when your claim is eventually processed.
Business Improvement Group has partnered with Venbridge exclusively to offer SR&ED Financing solutions to their clients. Venbridge offers a SR&ED Financing tool that allows you to access your SR&ED tax credits as you accrue them. The timing and amount of your disbursements are totally up to you. Once you’re approved for a credit facility, you can choose to receive the entire amount in a single disbursement, set up quarterly disbursements, or draw from the line of credit on an as-need basis. This way, you only pay interest on the money you use to grow your business. The financing you receive can be used wherever you need, whether it be hiring new employees, launching a new product or a major event coming up that requires an urgent injection of cash. If required, Venbridge will also look at your company’s financials and determine if they can combine other tax credits or your recurring revenue for a bigger loan.
Business Improvement Group’s team has experience accessing grants and funding opportunities and knows how to position applications to increase their likelihood of being accepted. This agreement with Venbridge will allow Business Improvement Group to continue to reach out to innovative Canadian companies to assist in recognizing eligible funding opportunities and maximizing legitimate claims all while improving cash flow and providing additional investment opportunities for clients. If you’re interested in learning more about how you can access SR&ED Financing for your company, please reach out to any of our team members.