TORONTO, Oct. 6, 2022 /CNW/ - Canadian businesses that receive government tax credit refunds or grants have received more than $100 million in funding from tax credit and grant financing company, Easly. A growing number of companies have tapped Easly Advances to secure a more predictable cash flow and access capital sooner. Two-thirds of Easly advances are repeat business and advanced amounts range from $25,000 to $2 million.
"Passing the $100 million milestone clearly shows there is active demand for tax credit financing and grant financing from the innovation economy across Canada," said Alastair Nimmons, Executive Vice President. "There is also more to come - there are billions in tax credits and grants available to small and medium sized businesses, but many companies are not taking advantage of monetizing those programs early and putting the money to use sooner."
Typically, the government's tax credit refunds and grant disbursements are paid at set intervals or when a company achieves certain milestones. Easly Advances provide capital months sooner, accelerating cash flow for companies with a high burn rate or limited revenue. There are no monthly payments required on Easly Advances, so unlike term loans or lines of credit, Easly Advances don't eat into a company's cash flow. Repayment to Easly is made directly from the CRA refund or grant disbursement.
"Easly Advances were a clear choice for us. Getting access to our accrued SR&ED refund months in advance enabled us to accelerate product development and maintain momentum. We get to decide when to deploy those funds, rather than wait for an annual payment from the CRA," said Lennie Ryer, CFO and VP Finance of Montreal-based Reaction Dynamics. "It's incredibly valuable to have on-going access to non-dilutive funding as we accrue SR&ED credits throughout the year."
Easly Advances also allow companies to leverage their total cash on hand to secure more funds, a process known as stacking. If a grant requires a 50% contribution from the business to qualify, then it's possible to use Easly Advances to bring forward an SR&ED refund to increase the size of the contribution and therefore the size of the total grant.
Easly Solutions Corp. is a market leader in refundable investment tax credit and grant financing. Through its Capital-as-a-Service financing platform, Easly provides Canadian companies of all sizes with non-dilutive capital that's accessible throughout the year by leveraging a company's accruing tax credit refunds and grants. Bringing the receipt of these funds forward enables companies to strategically invest in their growth without having to give up equity.
View original content: http://www.newswire.ca/en/releases/archive/October2022/06/c9784.html