Unlock Opportunity with File & Finance from Leyton & Easly

02-02-2022

Each year, Leyton helps thousands of their clients get the most out of government tax incentive and grant programs. Through their partnership with Easly, Leyton is equipped with a powerful tool to enhance the benefit of government funding. By leveraging Easly’s Capital-as-a-Service platform, Leyton can offer on-demand access to non-dilutive financing alongside their expert filing and consulting services. This provides a unique opportunity for Leyton clients to take ownership of their project’s budget.

File and Finance

Leyton manages tax incentive claims and grant applications for their clients, and Easly advances funds from those programs at any time throughout the year. Providing these services together creates a recurring source of non-dilutive capital. Leyton ensures the claims and applications are accurate, and Easly provides advances based on expected payouts. The client unlocks their future receivables and extends their financial runway.

Aside from the benefits mentioned above, there are more benefits hidden within these paired services that enable big projects otherwise deemed too costly.

Dream Big

Shot of a group of businesspeople brainstorming with notes on a glass wall in an office

As many innovators know, granting bodies often require applicants to secure a portion of a project’s budget before qualifying for the grant. Usually, the requirement is 50% of the project’s total cost.

The upfront cost can discourage applicants from bringing forth the best projects, whittling down what they’d like to do to what they think they can afford to do. This stifles innovation and slows growth.
Fortunately, with File and Finance, applicants have more capital than they think. By working with a Leyton Consultant, they can strategically advance SR&ED or other government receivables to secure more capital upfront, allowing for a larger grant to get the desired project funded.

Here’s an example:

A grant applicant is considering a project that qualifies for a non-refundable grant. It has a specific scope of work with a beginning and end and is eligible for the SR&ED tax incentive program:

In this scenario, applicants are in a tough spot: $1.5M is a lot of money to raise. Fortunately, they are off to a good start. Their prior year’s SR&ED will provide $120,000. From there, they can use Easly advances to bring forward 75% of their accrued SR&ED refund at any point in the year:

Starting Balance: $120,000

In this scenario, $915k in project contributions comes from advances on earned tax credits. That leaves $585k to raise to qualify for the $1.5M grant. This means that grants and tax incentives cover 80% of the project. 

The applicant can undertake a $3M project with less than 600k in outside funds!

Without advancing the project’s total SR&ED, it would be up to the applicant to secure an additional $915k of capital or miss the opportunity to undertake the right project for their business.

Leave the Calculations to Your Consultant

Figuring out the numbers in the example above can seem daunting, but that’s where your Leyton consultant can help. Establishing which expenses in your project are eligible for incentives and assigning an estimate to the refund is an easy task for an experienced consultant. From there, they can incorporate Easly’s advances into the application and secure the funds you need for your desired project.

Are you eyeing an upcoming grant opportunity or looking for ways to improve your current cash position? Speak with your Leyton rep about our File and Finance solution, or visit Easly to speak directly with one of our Lending Specialists.