During the current period of uncertainty, it has become clear that equity markets could be in for a turbulent patch over the foreseeable future.
As a consequence, many solid companies are now working hard to ensure they have the short-term funding in place to secure their businesses over the coming months.
And now that the various government packages and loans have concluded, we have had a spike in enquires from solid businesses looking to bridge their HMRC-backed Research & Development (R&D) Tax Credit.
This is a unique way for companies to cover a short-term liquidity gap and provides investors with the added comfort that payments come directly from the HMRC.
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.
In return for this short-term funding, companies are offering to pay interest from 1% 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, please email firstname.lastname@example.org and we will be in touch to discuss these opportunities with you in more detail.