The Scientific Research and Experimental Development (SR&ED) provides reimbursement, in the form of tax credits, for eligible research and development expenditures. However, if your tax credits are refundable, it can take 1-2 years before the actual refund is received.
There are many ways to obtain SR&ED financing in order to increase your working capital. Financial institutes often work with EDC (Export Development Canada) to offer attractive SR&ED financing solutions. EDC’s Export Guarantee Program provides Canadian companies with export-related activities or foreign with guarantees on their SR&ED claims. This export guarantee coverage is typically 75% of the amount of the loan that the financial institute will provide.
