Many automotive companies in Ontario fail to realize on their SR&ED expenses and the associated liquidity possibilities.  Companies are well aware of how to file & claim for their SR&ED refunds, but few companies seek to leverage these refunds with their financial institutions.  Most financial institutions are happy to create new lines of credit supported by an authenticated & filed SR&ED return - is there a better credit risk than the Canadian federal government?  This is one ready liquidity source that suppliers could consider tapping into.  But what if you don't have an outstanding, filed but unpaid return, what then?

 EDC has a program where we can work with your financial institution and a SR&ED auditor to allow suppliers to unlock the future refund while you are still in the process of accruing the relevant expenditures.  Imagine that, as you make SR&ED eligible expenditures, your borrowing base actually grows!  Depending on your bank's interest in taking part, EDC can look at guaranteeing up to 90% of this facility.