For many Canadian small businesses, few burdens are heavier than falling behind on tax obligations. At Express Business Funding (EBF), we understand that CRA debt is often the result of cash flow disruptions or unforeseen challenges—not mismanagement.
In this article, we’ll walk through why staying up to date with taxes matters, actionable steps to deal with CRA debt, and how EBF offers alternative finance solutions that support business growth and debt management.
Key Takeaways:
- CRA debt is manageable—with the right support and financial strategy.
- Professional tax specialists and organized financial records improve negotiation outcomes.
- The CRA offers payment plans that can be tailored to your business’s cash flow.
- Staying transparent with the CRA increases the chance of receiving flexible repayment terms.
- EBF provides alternative finance options like invoice factoring to inject fast capital and support tax debt repayment.
- Regaining control over your tax obligations improves both business stability and growth potential.
Why Staying Current on Taxes Matters to Your Business
Paying taxes isn’t just a legal duty—it’s essential for sustaining Canada’s public services and social infrastructure. However, tax complexity, changing legislation, and inconsistent revenue can make this difficult for entrepreneurs.
“I believe in fulfilling tax obligations, but the pressure from the CRA can feel overwhelming,” shares Gareth Bird, Chief Growth Officer at EBF. “This stress diverts focus from core operations and slows growth.”
Ignoring CRA debt can lead to penalties, audits, and reputational harm—putting your business at greater financial risk. Staying compliant helps ensure operational continuity and opens up paths to future capital access.
5 Steps to Catch Up on CRA Debt (and Reduce the Pressure)
Here’s how you can begin addressing your CRA arrears today:
- Hire a Tax Specialist: Work with a tax professional who understands CRA processes. They’ll help you navigate regulations, reduce errors, and avoid costly delays.
- Track Income and Expenses: Maintaining clear records is crucial. The CRA will request financial documentation, so prepare current and historical cash flow statements and transaction reports.
- Practice Transparency: The CRA is more flexible with businesses that are open about their situation. Being transparent can lead to more accommodating repayment terms.
- Request a CRA Payment Plan: Don’t wait for enforcement. Be proactive—most businesses can negotiate flexible payment arrangements that support ongoing operations.
- Stay Organized and Compliant: Once a plan is in place, stick to it. Adhering to your repayment schedule shows good faith and keeps your business out of further trouble.
How to Set Up a CRA Payment Plan: A Step-by-Step Guide
Setting up a payment plan with the CRA involves the following:
- Assess Your Debt: Tally all outstanding taxes, interest, and penalties.
- Reach Out Early: Use the CRA’s business inquiries line or My Business Account portal to initiate communication.
- Provide Financial Details: The CRA will request data like profit/loss reports and cash flow statements to evaluate your ability to pay.
- Negotiate Realistically: Don’t accept terms that aren’t feasible. You can negotiate the repayment amount or schedule.
- Get It in Writing: Confirm the plan through CRA’s formal channels and follow it closely.
How EBF Supports Businesses with CRA Debt and Cash Flow Challenges
EBF specializes in custom financial solutions that help small businesses navigate tax arrears while remaining operational and growing. Whether you need to catch up on tax payments or simply improve liquidity, our solutions—like invoice factoring and alternative finance—can provide the working capital you need.
“Unexpected hurdles can create serious strain,” says Bird. “That’s why EBF offers flexible financing options that enable businesses to stay afloat, pay down debt, and refocus on growth.”
Benefits of Working with EBF:
- Quick access to capital
- Improved cash flow to meet tax and operational needs
- No need for traditional collateral
- Tailored repayment terms
- Support from experienced finance professionals
Don’t Let CRA Debt Hold Your Business Back
You’re not alone. Many businesses across Canada face CRA-related stress—but there are solutions.
Talk to EBF today to discover how our invoice factoring and alternative financing options can help you regain control, relieve CRA pressure, and unlock your path to sustainable business growth.
Facing CRA debt? Ease it with alternative finance from EBF. Use invoice factoring for tax relief, take a look at our solutions or get in touch. Boost cash flow and beat the CRA, partner with EBF today!
