SR&ED Financing

Many financial institutions offer SR&ED factoring, which provides an advance against their SR&ED tax credits after a claim is filed. However, many start-up companies in Canada are starved for cash in between rounds of funding, and are not able to wait the 12 months for the SR&ED claim to be processed. An alternative form of SR&ED financing, or SRED financing, is known as accrual financing.

SR&ED Financing- Accrual Financing of SR&ED Claims

SR&ED financing provides valuable cashflows to startup companies to assist them with the commercialization of a concept, or with internal organic growth. Because startups often do not have hard assets to tap into, intangible assets, such as SR&ED, can often be leveraged in order to improve cashflows.

Accrual financing provides funds from lenders, like the North Innovation Fund, to companies in the process of conducting SR&ED, before the claim is filed. Unlike equity financing, SR&ED financing is:

• Non-Dilutive
• Non-Intrusive- can be processed quickly in a matter of 30 days

More about North Innovation Fund

North Innovation Fund provides ongoing accrual SR&ED financing to assist early-stage high-tech startups. Based on North Innovation Fund's extensive understanding of the Scientific Research and Experimental Development (SR&ED) program, it is able to loan against SR&ED claims, before the claim is even filed.