Financing tax credits

What type of product is it? 

Tax credit financing helps your company develop its innovations and grow its business by rapidly injecting cash into its working capital to carry out your projects. This financing simply pre-finances activities that will eventually qualify for tax credits. This product is designed for companies eligible for tax credit refunds for scientific research and experimental development (SR&ED), equipment investment or e-business development. 

What are the special features of this financial product?

• The company's claim history for this credit, and the level of uncertainty surrounding its collection (repayment of an SR&ED credit being less predictable than that for an investment, for example), will influence the percentage of financing authorized.
• In all likelihood, the revenue agency will be notified of the financing of credits receivable. As a result, the lending institution will usually receive the tax credit cheque directly from the agency.
• These loans are usually secured by a chattel mortgage.

What are the advantages of this financial product?

• It allows you to benefit immediately from the cash flow generated by your refundable tax credits, and to repay the loan upon receipt of the amounts due from the government.
• Repayment of this type of financing is made on collection of the loans.

In addition to answering your questions, our SADC experts can help you make a real analysis of your situation. What's more, an analysis of your long-term needs and the determination of an appropriate financial strategy for your business could be developed at the same time.

See the list of different needs on the right. This financial product specifically meets the following needs:

• Improve your working capital / Growth
• Financing your tax credits
• Financing a startup
  
• Improve your company's environmental performance

Don't hesitate to apply to SADC for financing. We'll help you think through your project and bring it to fruition.