R&D Cash Advances
R&D cash advances is a form of short-term cashflow funding to bridge the gap between submitting an R&D cash credit claim and receiving the payment from HMRC.
R&D cash advances is a form of short-term cashflow funding to bridge the gap between submitting an R&D cash credit claim and receiving the payment from HMRC.
The time taken between investing in R&D and receiving a claim back from HMRC can often create real cash flow challenges for businesses.
We can help bridge that gap by offering short-term funding through a selected panel of lenders, with terms tailored to your needs.
What is it?
It’s a loan against future Tax Credits: It’s essentially a short-term loan where your anticipated R&D tax credit refund acts as collateral.
→ Bridge Funding: It’s designed to bridge the gap between when you incur R&D expenditure (or make your claim) and when you receive the actual tax credit payment from HMRC. This can be particularly useful as it can take several months (or sometimes longer if HMRC has queries) for the tax credit to be processed and paid.
→ Non-Dilutive: Unlike equity funding, an R&D cash advance doesn’t require you to give up any ownership or shares in your company.
Benefits of an R&D Claim Cash Advance
Improved Cash Flow
Provides immediate access to capital, allowing businesses to reinvest in R&D, hire staff, purchase equipment, or manage other operational expenses without waiting for HMRC.
Accelerated Growth
The early access to funds can accelerate R&D projects and market entry.
Non-Dilutive Funding
Helps businesses grow without giving up equity or control.
Predictability
Can offer more certainty for financial planning than waiting for an unpredictable HMRC payout timeline.
Reduced Financial Strain
Especially beneficial for start-ups or scale-ups that might be cash-flow negative due to heavy R&D investment.
The Process
ABGi will review your situation and needs
We’ll match you with the most appropriate lender
We’ll introduce you to the lender
The lender will undertake due diligence and make an offer directly to you
You accept the offer and sign documents
The lender transfers funds directly to you
Costs
Lenders will charge
→ A set-up or arrangement fee on completion of the loan agreement
→ Monthly interest charge against the outstanding balance
