1 

Eligibility

- You have done some R&D eligible under the HMRC SME Scheme, and

- You are currently loss-making, and either

- You are using an R&D Tax Consultant, or

- You have at least 3 years history of filing for R&D Tax Credit without it being contested or queried

2

Purpose

An R&D Tax Credit advance can be used for a number of reasons:

- accelerate your growth

- delay an upcoming fund raising

- provide a cash buffer

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There are usually no restrictions on the use of cash provided in an R&D Tax Credit advance.​

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There can be spending covenants tied to an R&D Tax Credit loan where the business must stay within strict spending pre-agreed guidelines.  This is done to ensure the business does not run out of cash prior to the HMRC Tax refund. 

We will also ask our or a third party's bank details are on the CT600 form in order to avoid agency risks. Finally, we will hold a fixed and floating charge over the business for the duration of the loan and will usually need to the senior-most lender.

3

Timing & Size

R&D Tax Credit can be issued up to 4 months ahead of the filing of a CT600.​

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The due diligence is relatively quick, with about a week being standard.

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We will fund up to 80% of the R&D Tax Credit money spent to date.  As we lend up to 4m in advance, it is possible to top up the loan amount as more money is spend on R&D during the year.

4

Typical Terms

Establishment Fees: 3%

Interest Rate: 18%

Warrant: None

Duration: Typically 6 months (3-4m ahead of filing + 2-3m for repayment) ​