"While the government deserves praise for unlocking cash for R&D, the long wait for reimbursement puts this funding out of reach for many"
Under the current system, UK businesses can claim cash repayments of up to 33% of their R&D expenditure, but it can take up to six months to receive payment from HMRC.
ArchOver will fund a six month advance of up to 70% of the estimated value of an R&D claim, with a minimum loan of £250,000.
The funding is available to companies that can demonstrate a history of successfully claiming R&D tax credits from HMRC, with at least two years’ successful claims.
ArchOver says the bridge will help businesses to grow whilst waiting for their R&D tax claim to be repaid, as well as enabling lenders that invest in RDA loans through the ArchOver platform to earn a solid return on their cash, with a rate of 10% p.a.
Angus Dent, CEO of ArchOver, commented: “Investment in research and development is crucial not only to individual businesses, but to the wider economy as well. While the government deserves praise for unlocking cash for R&D, the long wait for reimbursement puts this funding out of reach for many of the businesses that stand to benefit most.
“ArchOver is committed to unlocking access to capital while providing new opportunities for investors. With the RDA service, businesses no longer need to worry about having to wait for months to be reimbursed for R&D, which means they can start putting their investment plans into action immediately. That’s great news for individual businesses, and for the UK economy generally”.
