A Radium Advance is designed to solve the kinds of critical cash flow problems often experienced by companies conducting research and development (R&D).
Benefits of Radium Advances
It’s an advance which brings forward the R&D tax refund to help businesses keep their R&D programs operating until they receive their ATO refund. So, what are the benefits of Radium Advances?
Get cash quarterly, not after tax time
More than 10,000 companies claim over $1 billion in Federal Government R&D tax refunds each year. Companies receive a refund of 43.5 cents for every dollar spent under R&D programs registered with the Department of Industry, Innovation and Science’s AusIndustry program.
Under the government’s program, companies invest in R&D 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 capital and receiving the refund.
A Radium Quarterly Advance is a quarterly funding advance for companies conducting R&D programs eligible for the R&D tax refund. The amount of capital Radium advances is based on a company’s expected tax refund.
Improve your cash flow for R&D programs
Many businesses, especially smaller businesses, experience cash flow problems and delays for their R&D programs because the Federal Government’s R&D innovation incentive is delivered as a tax refund. Some companies have been forced to wait up to 18 months to access the refund, which can have a detrimental effect on an R&D project.
Radium Advances close that funding gap, providing much-needed quarterly cash flow to the eligible R&D program. Advances are only repaid when the business receives its full ATO refund.
As a Radium Advance improves cash flow and allows businesses to get to a revenue position faster, the company no longer needs to raise as much external capital, avoiding the need to dilute existing shareholders. The Radium Advance is secured against the company’s ATO refund.
Get access to funds within three business days
Rather than waiting up to 18 months for a tax refund, with Radium Advances, companies can apply through Radium Capital’s online platform, provide the required documentation and receive their approval within two business days. Businesses will then receive their funds within three business days after they sign their loan documentation. 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 refund, and whether a business is eligible to apply for a Radium Advance. These accountancy firms provide a ‘comfort letter’, which a business supplies to Radium Capital when applying for a Radium Advance.
Get on with your research
Radium Capital was co-founded by highly experienced online finance experts from around the globe after they identified the challenging cash flow conditions for Australian businesses conducting R&D.
The company is backed by $125 million in funding, with additional funding and expressions of interest from local funding sources possible.
The primary market for a Radium Advance is smaller companies with R&D programs that are stretching their budgets and cash flow. But any company or research project eligible for the Federal Government’s tax refund can apply.
If your R&D program could benefit from a Radium Advance, call us on 1800 723 486 or email us to find out how to apply.