WHAT ARE THE BENEFITS OF A RADIUM ADVANCE?
A Radium Advance is designed to solve the kinds of critical cash flow problems often experienced by companies conducting research and development programs.
It’s bridging form of funding which can be used to help keep R&D programs operate until they receive their tax rebate from the Federal Government.
So, what are the benefits of Radium Advance and what kinds of problems does it solve?
Get cash quarterly, not sometime after tax time
More than 10,000 companies claim over $1 billion through the Federal Government’s R&D Tax Incentive each year. The incentive refunds to companies 43.5c of every dollar spent under R&D programs that have registered with the Department of Industry, Innovation and Science’s AusIndustry program.
Under the Government’s program, companies incur R&D expenditure during a tax year and then apply for a refund as part of their tax return – which can mean a long delay between spending the money and receiving the refund.
Radium Advance is a quarterly funding “advance” provided to companies which are conducting R&D programs eligible for the R&D Tax Incentive. The amount of funding received from Radium is based on a company’s expected tax refund.
Improve your cash flow for R&D programs
The fact the Federal Government’s R&D innovation rebate is delivered as a tax refund means many of the R&D programs that rely on it – especially in smaller businesses – can experience significant cash flow problems and huge delays. Some companies have been forced to wait up to 18 months to access the rebate, which can have a hugely detrimental effect on an R&D project.
Radium Advance closes that funding gap, providing much-needed quarterly cash flow to the eligible R&D program. The borrowed funds are then repaid when the company’s Tax Incentive rebate comes through from the government.
Less dilution for shareholders
As a Radium Advance improves cash flow and allows businesses to get to a revenue position faster, the need for raising external capital is reduced. This negates the further need to dilute existing shareholders.
Get access to funds within 72 hours
Rather than waiting up to a year and a half for a tax return, with Radium Advance, companies and researchers can access funds incredibly quickly. Companies can apply through Radium Capital’s online platform and receive approval within 48 hours of providing all the required information. Funding can be received 24 hours after that. The only security taken is a first charge over the expected refund.
Radium Capital works closely with top-tier Australian accounting firms to assess the eligibility of an R&D program for the Federal Government’s Tax Incentive, and therefore a Radium Advance. These accountancy firms provide a ‘comfort letter’, which allows Radium Capital to proceed with the advance.
Get on with your research
Radium Capital was co-founded by a cohort of highly experienced online finance experts from around the globe after they identified the challenging cash flow conditions in R&D in Australia.
The company is backed by $125 million in funding, which has offered to increase that as demand requires and has also received expressions of interest from local funding sources.
The primary market for Radium Advance is smaller companies who are doing incredible R&D but whose research is stretching their budgets and cash flow. But any company or research project eligible for the Federal Government’s Tax Incentive can apply.
If you feel like your R&D program could benefit from a Radium Advance, apply through our website.