GrantTree’s R&D Advance Funding service lets you unlock up to 80% of your future R&D Tax Credit up to 12 months ahead of schedule.
If you’ve completed your first financial quarter, you’ve likely made sizable investments in R&D. To develop new products or services or enhance existing offerings with innovative new features.
These investments may be eligible for R&D Tax Credits, a generous government scheme that lets you recoup up to 33p for every £1 you spend on qualifying costs.
R&D Tax Credits are an excellent source of funding for innovative businesses. However, as a form of corporate tax relief, you can’t access your credit until after your financial year-end.
This means that if you recently completed your Q1, you won’t be able to access your funding for another 12 months. Nine months until the end of your financial year plus another three while HMRC processes your claim.
Helpfully, there is a way to unlock your R&D Tax Credit much earlier – as soon as you’ve finished your first quarter, in fact.
That is through GrantTree’s R&D Advance Funding service.
What is R&D Advance Funding?
R&D Advance Funding helps ambitious, innovative companies grow faster and take control of their cash flow without giving away equity.
Through R&D Advance Funding, you can access up to 80% of your future R&D Tax Credit payment up to 12 months ahead of schedule. You can access your first R&D advance once you’ve finished your first quarter.
To give an example of Advance Funding in action, let’s say you invested £250,000 in qualifying R&D in Q1. This investment would eventually generate an R&D Tax Credit worth £83,375.
With Advance Funding, you could access up to 80% of your credit – £66,700 in this example – once you’ve finalised your first-quarter figures.
Once you’ve registered your interest in Advance Funding, GrantTree’s specialists will verify your eligibility for the R&D Tax Relief scheme and run some due diligence with our partners.
As soon as the checks are complete, we’ll transfer the capital to your corporate bank account and you can start investing it right away.
Boost your R&D Tax Credit windfall by 24%
Accessing R&D Tax Credits months ahead of schedule can help you accelerate key purchases, bridge a funding round, and negotiate more favourable terms with your investors. And the benefits don’t stop there.
If you spend your advance on further R&D, you’ll be able to claim a much larger cash credit at the end of your financial year.
In fact, if you take our three advances – after your first, second and third quarters – you could increase your windfall by up to 24%.
You’ll also be able to access a credit worth 41% of your original research and development budget instead of the 33% usually available through the scheme.
To read more about using R&D Advance Funding to increase your credit, check out this blog by my colleague George Beverley.
Want to learn more about R&D Advance Funding?
If you’re interested in exploring R&D Advance Funding for your business, just get in touch. We’d be happy to tell you more about the service and explore whether it’s right for you.