With the EOFY in sight, getting R&D finance to bring forward your R&D refund may seem like a crazy idea. But it’s not as crazy as it sounds. Having an extra shot of capital helps businesses that would otherwise have limped across the 30 June finish line bounce into the new financial year instead.
Indeed, the home stretch of the financial year is becoming an increasingly popular time for businesses to get R&D finance. Shorter loan terms with a monthly interest rate of just 1.25% are major drawcards. But there are five other reasons why you should make an R&D advance the statement piece of your financial plan — not only at EOFY time but also all year round.
1. It’s time to steal a march on the competition
By the last quarter of the financial year, many businesses with R&D are already running on empty when it comes to capital for their research and development (R&D). So rather than charting this course and battening down the hatches to ride out the year-end, why not take a different tack? An R&D advance would create a new wave of capital and allow your R&D to barrel ahead of the cash-strapped competition. This tactic will help your business spring forward into the next financial period. But locking in R&D advances when you need them, at any point during the year, will stop the grass growing under your feet when it comes to your R&D programs.
Radium Capital’s clients Signature Gold and Linecrest used Radium Advances to accelerate their innovations.
By locking in a Radium Advance, the Sydney-based gold explorer saved time and money on its exploration project in the Queensland goldfields. Brett Boynton Chief Executive Officer and Managing Director, Signature Gold Ltd and Tectonic Gold Plc explains:
“If we had waited for the refund, we would have missed the window and had to cover six to nine months of overheads before we could deploy our field team. Working with Radium enabled us to get to work quickly, saved us significant costs and delivered real value for our shareholders.”
Hi-tech miner and NT Bullion subsidiary, Linecrest, used multiple Radium Advances at regular intervals to drive its R&D forward and find an environmental solution to an iron-ore stockpile. Anthony Short, NT Bullion Executive Chairman shares:
“Using Radium Advances strategically has allowed us to reinvest in R&D from the outset, which meant we could scale up and get into production much faster.”
2. You’ve accrued your refund
If you’ve already accrued most of your tax refund on this year’s eligible R&D expenditure, why tighten your belt? You have the option to access your R&D tax incentive claim (RDTI) in a few business days and boost your R&D budget, instead. Even though tax time is fast approaching, you could still be waiting weeks or months to receive your refund, and in the process, lose out on crucial R&D time. It makes sense to access most of what you’re owed a little early. And depending on your R&D expenditure and R&D programs, it can pay off to bring forward your R&D refund multiple times throughout the year, not just near EOFY.
3. It helps you attract other sources of funding
Time and time again, businesses with R&D tell us that having easy access to R&D advances makes it easier to obtain other sources of funding. If R&D financing is part of your financial strategy, it benefits your business and potential investors in several ways. First up, R&D advances are non-dilutionary capital, so your business can access funding without becoming too diluted — a plus point for you and your investors. Radium Advances provide businesses doing R&D with the right capital at the right time. This enables your business to be more financially stable and have consistent cash flow, so your R&D programs don’t lose momentum due to lack of capital. Taken together, this reassures existing and potential investors making your business an altogether more appealing investment prospect.
4. You can focus on your R&D, not cash flow
For start-ups and other businesses doing R&D, finding R&D capital not only becomes a major distraction, it often delays the research itself. All too often, business owners and managers find themselves scrambling to scrape sufficient funds together to keep their R&D programs afloat. But Radium Advances can lift this weight off the shoulders of founders and executives. By offering a financing solution that’s scalable and available when it’s needed, R&D finance frees up founders, R&D managers and their teams to focus on what they do best — research to drive their innovations forward.
Many Radium Capital clients cite this as a significant benefit, including construction robotics innovator FBR. The Perth-based start-up used a perfectly timed Radium Advance to push forward with its research and avoid becoming too diluted ahead of a crucial funding round. Aidan Flynn, Chief Financial Officer, FBR says:
“A Radium Advance was a quick and easy way to get cash in the door and avoid the distraction of having to raise capital at a critical time.”
Tasmanian Agritech SSW Dairy didn’t realise early-stage start-ups were eligible to get early access to R&D refunds with R&D finance. So it planned to ration its R&D capital and take a staged approach to funding its research. But after learning about Radium Advances and successfully applying for finance, SSW Dairy was able to change its R&D plans for the better.
John Stewart, SSW Dairy Co-founder and Director shares:
“Getting a Radium Advance allowed us to fully fund our R&D in our first financial year — something we didn’t expect to achieve.”
5. It’s quick and easy
If your business is eligible to apply for the RDTI, you’re eligible to apply for a Radium Advance. And provided you’ve gathered the documents we need; we’ll approve your Radium Advance in two business days and ensure you receive your funds within three days of signing your loan documents. Our online platform makes for a seamless, digital process that is scalable and can be easily replicated the next time your business needs some additional R&D capital.
Getting started with your application
Whether you’re a small business, scale-up or larger well-established company, if you need an R&D advance Radium Capital can help you grow and thrive. We write loans of all different sizes for businesses from all different industry sectors. So don’t miss out on funding that could give your research the edge. Request a call with Radium Capital’s R&D finance experts or apply for a Radium Advance today.