You might have heard of something called SaaS, or software as a service. The idea is that you pay for software for you or your business, but you’re not buying it. You’re essentially leasing it. You pay a monthly, quarterly, or yearly fee, and you use that software suite for various purposes.
Capital as a service is not dissimilar. With CaaS, you’re utilizing a company that can get you capital when you need it. All businesses need money to operate, and you’ll need to find a way to locate that capital if you want to stay afloat and expand into new markets.
We’ll break down CaaS a little further, so you can figure out whether this service makes sense for your company.
The SR&ED Tax Credit
To further explain CaaS, we’ll use the SR&ED tax credit as an example of something such a service can accomplish for you.
The Canadian government makes the SR&ED tax credit available for individuals and companies researching or developing technologies that can potentially help society. If you operate a Canadian company, and that sounds like something you’re doing, you can go on their website to determine whether you might be eligible.
On the surface, the program is excellent because the government can send you some money that might fund various research and development aspects. The only issue some companies run into is that they know the money is coming, but they’re unsure exactly when it’s going to arrive. They might not know the exact dollar amount, either.
As you might expect, that makes things a little tricky. You want to run a company as meticulously as possible. That isn’t easy when you don’t precisely how much money a program is giving you or when it will arrive.
How Capital as a Service Can Help You in This Area
That’s when you might contact a CaaS company. You can explain to them that you’re trying to navigate the SR&ED tax program. You feel like the Canadian government will send you money at some point, but you’re having trouble working your way through the website and all the required confirmation steps.
It’s the CaaS company’s job to streamline the application process. This will save you a lot of time and headaches. You can plug your company information into the software suite, and it will completely change how and when you can access the incentives.
An accelerated timeline is next. A great CaaS company can sometimes get you the money from a program like this one a full year before you would otherwise see it.
Think about what you can accomplish if you have earlier access to that money. You might be able to accelerate some of your projects significantly.
A CaaS Company Partnership Means Predictability
Beyond that, when you sign up with a CaaS company, you’ll know you’re getting predictable quarterly installments. This takes away two mysteries: when the money is coming and exactly how much it will be each time.
If you take this step, you can better manage your cash flow. You can have total confidence as you plan your long-term budgeting.
If you know how much money you’ll get from any programs for which you are eligible and when it’s going to come, you can plan your company’s next several phases. Any time you have a reliable predictive model, you can weather any storm so much easier.
The unexpected always happens in business, but if you have safeguards like this in place, you don’t need to fear it as much.
What Do You Need to See from a CaaS Company?
If you want to move forward at this point, and you want to engage a CaaS company, you might not be sure how to pick the best one. Probably competitive pricing is the most critical feature for which you’ll look.
These services are not free, and you’ll want room in your operating budget to engage one. You can do a price comparison with the top candidates to see if any are out of your price range.
Assuming you find one you can afford, you’ll next talk to a company rep to get some specifics about what they can do for you. You want a company that can help keep your finances healthy.
The one you pick should be customer-focused. They should have staff ready to assist you if you ever have any questions, and you should be able to build sustainable relationships with their representatives.