During the current period of uncertainty, it has become clear that equity markets and consequently, equity funding, could be in for a turbulent patch over the foreseeable future.
Still, as a founder, you need to ensure that your business has the funding in place to secure it over the coming months and years.
One way you can do this is by bridging your HMRC-backed Research & Development (R&D) Tax Credit – a unique way for companies to cover a short-term liquidity gap.
In brief, any company that spends money developing new products, processes or services; or enhancing existing ones, is eligible for R&D tax relief.
If a company spends money on a particular innovation, it can make an R&D tax credit claim to receive either a cash payment and/or Corporation Tax reduction. The scope for identifying R&D is wide and exists in every single sector.
But whilst HMRC is processing your credit, which can take some time, we can provide you early access to that funding through a loan against your R&D Tax Credit.
This will provide you with almost immediate funding and investors are happy to lend, as they have the added comfort that payments come directly from the HMRC.
In return for this short-term funding, investors are typically looking for 1-2% per calendar month for a period of between 3-6 months. Typical loan sizes are between £30k and £500k.
We work with renowned R&D Tax specialists, who assess each claim and provide the relevant assurances and processes to safeguard investor funds.
Moreover, we have arranged several millions of pounds for these R&D bridging arrangements, for dozens of Shadow Foundr investors.
If this is something that may interest you, and you could do with a quick injection of funds for your business, please email firstname.lastname@example.org and one of our team will give you a call to discuss these opportunities with you in more detail.