How does R&D forward financing work?

You can lend against your future expected R&D tax incentive. Here's a brief overview.

We work with several R&D lenders on forward funding R&D tax incentive claims in Australia and the UK.

If you’re a startup looking to raise capital, this is a particularly attractive service. It works on the principle that most capital being raised will be used to fund further development, which is likely to be eligible for future R&D claims. Therefore, you can use R&D forward funding, as debt. This means you can either accelerate your R&D work and/or reduce the amount of capital you would otherwise have needed to raise. And as a founder, clever use of R&D forward funding means you get to keep more equity in your startup.

Our lenders specialises in providing loans against expected R&D tax refunds. If you have already done a previous R&D tax incentive claim, you’ll usually have most of the information needed to streamline the process of accessing this funding, but it is also available to first year R&D claimants subject to some extra rigour.

You’ll also need a forward cashflow, which we can help with as part of our financial modelling services.

If you want to talk more about this, please book in a call to discuss.