SR&ED Refund Advance
Access 75–100% of your expected SR&ED tax credit refund in days — not months.
Non-dilutive. No personal guarantee. No prepayment penalty. Settled when CRA pays.
What Is an SR&ED Refund Advance?
An SR&ED refund advance is a financial arrangement where a lender provides you with immediate cash based on the value of your expected Scientific Research and Experimental Development (SR&ED) tax credit refund from the Canada Revenue Agency.
When you file an SR&ED claim (Form T661) with your corporate tax return, the CRA processes it and eventually issues a refundable tax credit — but this typically takes 12 to 24 months. An SR&ED refund advance bridges this gap, giving you access to those funds immediately.
The advance is structured so that when the CRA eventually issues your refund, it flows to the lender to settle the advance balance plus accrued interest and fees. There are no monthly principal repayments — the full settlement happens at refund.
SR&ED Refund Advance at a Glance
What types of SR&ED refund advances are there?
Filed Claim Advance
Your SR&ED claim (T661) has already been filed with the CRA and you're waiting for processing. This is the most straightforward advance — the claim is documented, quantified, and submitted.
- Lower risk profile
- Higher advance rates possible
- Clear claim amount established
Accrued (Pre-Filing) Advance
Your company is currently performing SR&ED work and accumulating eligible expenses, but hasn't yet filed the claim. Advances are based on estimated accrued credits.
- Access cash during the fiscal year
- Quarterly disbursements available
- Bridges gap before filing deadline
What Does an SR&ED Refund Advance Cost?
The cost of an SR&ED refund advance depends on several variables. Understanding these components helps you compare providers and make informed decisions:
Monthly Interest Rate
Typically 1.0% to 1.6% per month, applied to the outstanding advance balance. Can be simple or compounding depending on the lender.
Example: On a $200K advance at 1.5%/month = $3,000/month in interest
Origination Fee
A one-time fee charged when the advance is disbursed, usually 1% to 3% of the gross advance amount.
Example: 2% on $200K = $4,000 origination fee
Monthly Administration Fees
Some lenders charge a monthly monitoring or administration fee for the duration of the advance.
Example: $250–$500 per month until refund
Legal/Flat Fees
One-time costs for legal documentation and setup of the financing facility.
Example: $1,500–$3,500 typically
Want to know your exact costs? Use our free calculator with transparent pricing.
Open SR&ED CalculatorWhat are the risks of an SR&ED refund advance?
While SR&ED refund advances are a valuable financial tool, it's important to understand the risks involved:
CRA Claim Reduction
If the CRA reduces your claim during review, the refund may be less than the advance amount. Strong documentation and a qualified SR&ED consultant minimize this risk.
Processing Delays
CRA processing times vary. A technical or financial review can extend the timeline, increasing interest costs. The advance period directly impacts total cost.
Interest Accumulation
Interest accrues for the full duration until CRA pays. If processing takes 18 months instead of 12, that's 6 additional months of interest. Use our calculator to model different scenarios.
Non-CCPC Status
If your company loses CCPC status (e.g., through foreign acquisition), your refundable credits may be limited, affecting the advance.
How does the Grow Financial advance process work?
Submit your application
Provide your SR&ED claim details, recent financial statements, and corporate tax returns. Our team reviews within hours.
Due diligence & assessment
We review claim quality, company financials, SR&ED history, and risk factors. No lengthy committee approvals — decisions are made quickly.
Term sheet & agreement
Receive a transparent term sheet with all costs clearly outlined. Review, ask questions, and sign when ready.
Funds in your account
Once signed, funds are wired to your business account. Use them for hiring, R&D, operations, or any business purpose.
Simple reconciliation
When CRA issues your refund, it settles the advance plus accrued interest. One transaction, done. No monthly payments throughout the term.
What else do founders ask about refund advances?
What is an SR&ED refund advance?
An SR&ED refund advance is a financial product where a lender provides you with immediate cash based on your expected SR&ED tax credit refund from the CRA. The advance is typically 75-100% of the expected refund amount and is repaid when the CRA issues your refund.
How much does an SR&ED refund advance cost?
The cost depends on several factors: the monthly interest rate (typically 1.0-1.6%), origination fees (usually 1-3%), monthly administration fees, and the duration until CRA issues the refund. Use Grow Financial's free calculator to model your exact costs with transparent pricing.
Can I get an advance on a claim that hasn't been filed yet?
Yes. Many SR&ED financing providers, including Grow Financial, offer advances on accrued SR&ED credits — meaning you can access funding based on work performed during the current fiscal year, even before filing your T661. This is especially useful for companies with predictable SR&ED activity.
What happens if the CRA reduces my SR&ED claim?
If the CRA reduces your claim, you're still responsible for repaying the advance. This is why lenders carefully assess claim quality before advancing funds, and why having strong documentation and a qualified SR&ED consultant reduces risk for both parties.
How is an SR&ED refund advance different from a loan?
While structured similarly to a loan, an SR&ED refund advance is secured specifically against your expected tax credit refund — not your company assets. There are typically no personal guarantees (for larger advances), no monthly repayments, and the advance is settled in full when CRA issues your refund.
Get Your SR&ED Refund Advance Today
Join hundreds of Canadian tech companies that have accelerated their cash flow with SR&ED refund advances from Grow Financial.
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