Balancing the need to invest in research and development (R&D) with the everyday demands of running a business can be tough. Waiting months for R&D tax refunds can put a serious strain on your cash flow.
That’s where Rocking Horse Group comes in. We offer R&D financing that gives you early access to your tax refunds, so you can keep your business growth on track without financial stress. We’ll show you how easy it is to get started with an R&D loan in just three simple steps.
What is R&D finance and why is it important?
R&D finance is a strategic financial service that allows businesses to receive loans or advances based on their anticipated R&D tax refunds. This financing is secured against the company’s expected year-to-date R&D tax return, providing immediate access to up to 80% of the year-to-date refund, which can be reinvested into your business.
R&D financing plays a critical role in the success of innovation-driven businesses. Providing early access to anticipated R&D tax refunds helps companies maintain a steady cash flow, invest in their growth, and stay competitive. R&D financing also:
Boosts cash flow
Provides immediate access to funds, alleviating cash flow constraints and allowing continuous investment in your business.
Reduces financial risk
R&D financing is non-dilutive, allowing companies to access necessary funds without giving up equity or taking on high-interest debt.
Maintains competitive advantage
Continuous investment in R&D, supported by financing, helps businesses stay ahead of the competition and meet market demands.
Improves financial planning
Enables better budgeting and financial planning by providing a clear timeline for when funds will be available.
Helps you retain control of your business for longer
R&D finance allows you to obtain non-dilutive finance, making the most of the advantages of debt financing rather than relying on equity financing.
Apply for an R&D loan in 3 simple steps
Preparing for your R&D loan application doesn’t have to be complicated. Here are the only three things you need to do to get started:
Step 1: Evaluate your eligibility
The first step is to see if your business qualifies for R&D finance. If your business is engaged in eligible R&D activities and you have lodged R&D tax claims before, you’re likely eligible.
A business’s eligibility for the R&D Tax Incentive can be broken down into three main areas:
- Eligible R&D activities generally include projects that aim to create new knowledge or develop new products, processes, or services. These activities must involve a significant degree of innovation and technical risk, such as:
- Developing new or improved products
- Creating innovative manufacturing processes
- Enhancing existing products or processes
- Conducting experimental activities that involve scientific or technological advancements
- Eligible notional deductions are expenditures that can be claimed under the R&D tax incentive scheme. These may include:
- Salaries and wages for staff directly involved in R&D activities
- Costs of materials consumed in R&D processes
- Depreciation of assets used in R&D
- Overhead costs directly associated with R&D projects
- Eligible expenditure refers to the costs directly related to R&D activities. These can include:
- Direct costs such as labour, materials, and equipment
- Contracted research and development services
- Software used in R&D activities
- Utilities and facility costs directly attributable to R&D
Not all costs associated with R&D activities are eligible for financing. Ineligible expenditure typically includes:
- Administrative and management costs not directly related to R&D
- Marketing and commercial sales costs
- Routine product testing and quality control
- Costs incurred after the R&D project is completed
- Finally, you will need to obtain a comfort letter from an R&D advisor to verify the legitimacy of your compliance and increase your credibility with the lender.
Step 2: Gather your documentation
Once you confirm your eligibility, the next step is preparing the necessary documentation.
This includes your previous R&D tax claim reports, financial statements, and details of ongoing R&D projects.
What Documents Are Required:
- Previous R&D tax claim reports: Documentation of past R&D tax claims submitted to the relevant tax authorities.
- Financial statements: Recent balance sheets, income statements, and cash flow statements.
- Details of ongoing R&D projects: Comprehensive project plans, objectives, methodologies, and progress reports.
- Supporting documents: Any additional documents that support the R&D activities and expenditures, such as payroll records and purchase invoices.
How to Access These Documents:
- R&D tax claim reports: These can be obtained from your accounting or finance department, or directly from your tax advisor.
- Financial statements: These should be readily available from your company’s accounting software or financial records.
- Project details: Collaborate with your R&D team to compile detailed reports and project documentation.
- Supporting documents: Gather invoices, receipts, and other financial records that corroborate the costs associated with your R&D activities.
Having these documents ready will expedite the application process and ensure faster approval.
Step 3: Calculate how much you can borrow
To make evaluating your eligibility even easier, Rocking Horse Group has introduced a new R&D finance calculator.
This tool helps you quickly estimate your potential R&D tax refund and determine how much funding you could receive.
Ready to submit your application?
At Rocking Horse Group, we’ve designed our application process to be as straightforward and efficient as possible. From initial consultation to final approval, our streamlined process ensures you can access the funds you need quickly and without unnecessary hassle.
You can apply for R&D finance with Rocking Horse Group in just a few simple steps.
- Get in touch
Contact us for an initial consultation. Our R&D finance experts are ready to assist you. Send us a message, request a callback, or call us at [phone number].
- Check eligibility
We’ll help you determine if you qualify for R&D finance. If you’re eligible for the R&D Tax Incentive, you qualify to apply for R&D finance with Rocking Horse Group.
- Gather documents
Provide necessary documents like your AusIndustry registration letter and previous financial year’s tax return.
- Confirm ATO position
Verify your tax position with business activity statements.
- Apply
We’ll guide you through the application process and help you with the necessary documents. Start your application here.
- Receive funds
After we review your application and you sign the loan documents, you’ll receive funds within 3 business days.
Why choose Rocking Horse Group?
Our team of experts understands the unique challenges faced by innovation-driven businesses and are well-equipped to provide tailored solutions for your business.
Choosing Rocking Horse Group for your R&D financing means partnering with a team of experts dedicated to your success. We provide the support, flexibility, and financial solutions you need to maintain a healthy cash flow and drive your innovation forward
Our goal is to make R&D financing easy, so you can focus on what you do best—mind your business.
Don’t wait for innovation to strike – apply now!
Turn your R&D dreams into reality with the right financial support. Contact Rocking Horse Group today to learn more about how our R&D finance solutions can benefit your business. Visit our website, talk to our experts, and start your application today!