First published by SmartCompany on 14 May 2020 as The smart way to innovate, without breaking the bank: Australian startup founders and CFOs bust the myths of R&D financing
Research and development is a critical way for a business to grow and gain an edge over the competition. But funding R&D is expensive — even with the government’s R&D tax incentive.
Although the incentive can return up to 43.5% of spending on R&D activities, businesses have to wait until after the end of the financial year to receive a rebate.
Enter R&D financing.
R&D financing is a loan that enables businesses to access their tax refund early and progress their R&D activities.
However, there are misconceptions about R&D financing. Some think it’s expensive, while others believe it’s secured against business assets.
SmartCompany spoke to accountants and industry experts to find out the truth.