Updated on May 12, 2021
For many companies, financing is perceived as an obstacle to digital transformation, which is essential to their survival.
Technological innovation covers many aspects of a company’s operations. Now more than ever, it must be included in an organization’s strategy to ensure its sustainability and competitiveness. You can invest in your transformation in a gradual and targeted manner based on your specific needs.
In order to determine which financing sources apply to your business, you must first define its needs, as well as your financial structure.
Subsidized Audit 4.0 program
You must prioritize your needs and consider a reasonable schedule to carry out the different implementation phases for these technological innovations.
First of all, you should know that the Industry Audit program of the Ministère de l’Économie et de l’Innovation (MEI) offers financial assistance to organizations in all sectors of activity to establish a diagnosis and digital plan with the help of an accredited auditor.
This step will be crucial in determining your specific needs based on your current level of technological advancement.
Several financial assistance programs available
Depending on the investment needs identified (equipment, technology, salaries, process optimization) and your situation, you may be eligible for financial assistance offered by governments or institutions.
Here are a few resources:
- Investissement Québec (venture capital and investment funds, refundable tax credit financing, term loans, Compétivert program, Essor program);
- Financial assistance for the purchase or modernization of equipment;
- Financial assistance for research and innovation;
- Canada Economic Development Program;
- Banks and Desjardins caisses (term loan on acquired equipment);
- Business Development Bank of Canada and Roynat (term loan on acquired equipment).
Also, find out about programs that target your industry, such as the Dairy Processing Investment Fund and the Entente de développement numérique des entreprises touristiques (EDNET), as well as programs specific to your region.
Tax credits and tax measures
You should also know that several tax measures are available to help you finance your technological innovation projects. Make sure you take advantage of all of the measures to which you are entitled.
If the company anticipates strong growth thanks to this upgrade towards Industry 4.0, it may consider additional financing, i.e., a loan that would be repaid according to the self-generated funds, referred to by different terms.
Unsecured bond (debenture)
This fixed income investment is generally not secured by specific assets but rather by the issuer’s credit score.
This is a loan secured by assets that gives the lender a priority right to repayment over other creditors if, for example, the company defaults, or over the company’s profits.
A loan with a periodic repayment.
Cash flow loan
A loan based on the expected cash flow of the project being financed.
Do you have questions about the best ways to finance your innovation project? Our experts can help you.
04 May 2018 | Written by :