Of the many questions clients ask around the SR&ED (SRED) program in Canada a typical one, actually two, is ‘ can we finance and our SRED claim… and how is financing SR&ED grants done?’Let’s work through a short SRED loan primer and cover off the basics, allowing you to better understand the potential benefits of financing your SRED refundable credit, and, more importantly determining if it makes sense to finance that claim.SRED calim percentages actually vary by provinces, because they are a combo grant that is administered and funded by both your province and Ottawa. While percentages of the amounts you receive might vary a bit between provinces for the purposes of our discussion we’ll speak in general terms, because we are pretty sure you aren’t going to move your company location to increase your non repayable SRED credit!.SRED claims vary but in general they do not go much more than over a million dollars. You have the ability to finance your claim if it’s eligible. We will also mention that if your company is perfectly willing to wait for your cheque that’s a good thing also, it just seems to us that if you can put non repayable tax credits to work to generate additional revenue and profits, well… that is a good consideration of financing our SRED refundable credit.A key to financing your claim is the quality of your claim. Three types of preparers are out in the marketplace – your company itself can prepare the claim, your accountant can, or you can use an expert, otherwise known in the industry as a SRED consultant. Theoretically all three parties could prepare a claim that is financeable, but the reality is that your SRED finance firm leans more preferably to the utilization of a SRED consultant. That’s simply because expertise in an area such as an R&D overview submission seems to make the most sense.The government pays out billions of dollars each year to firms such as yours – so filing a claim, and considering the financing of that claim can be a key part of your overall company cash flow.If your claim is a first time claim, and is less than straight forward there is a strong possibility based on current SRED trends that you could wait close to a year for your refund. So the question then becomes, could your firm utilize effectively a SRED loan as a bridge type financing for additional cash flow and working capital.If you are answering in the affirmative then it’s simply a case of working with a trusted, credible and experienced Canadian business financing advisor to fast track a SRED financing. Typical SR&ED loans take a couple weeks or so to process; it’s a basic business application, with your SRED refundable credit collateralized. Advances on your claim are in the 70% range and are typically structured as no payments, with the final 30% due your firm, less financing charges, at the time of final disbursement from Ottawa and your province.A short summary of our shared info is very simple – if you qualify for SRED then clearly use the program – if you don’t you are missing out. Want to wait a year for your money… great, keep us posted, the cheque is in the mail. Want additional working capital and cash flow today out of your non repayable SRED credit, then consider the SRED loan financing program today. It’s as simple as that.