Does your firm want to use its FY 16/17 R&D tax rebate NOW; instead of waiting till September 2017?

[Andrew Miles]

Does your firm want to use its FY 16/17 R&D tax rebate NOW; instead of waiting till September 2017?

R&D Capital Partners (RDCP) is a specialist financier that can provide Australian R&D tax refundable claimants the ability:

·           to use the future FYE JUN17 R&D tax rebate, prepared by their accountant/service provider or internally, for funding NOW instead of waiting till September 2017; while,

·        dramatically increasing the claimants R&D tax claim.

 

i.e.

1.   If you have NOT received FYE JUN16 R&D tax rebate funds. RDCP can provide up to 80% of this rebate now (with a 20% buffer that is returned to the company) for a minimum of three months while your accountant finalises the accounts.

*For example (FY 15/16): Claim of $1m results in a rebate cheque of $450k. RDCP will fund up to $360k for a minimum 3 month period.

2.   On a quarterly or half yearly basis, RDCP can pay incurred expenses against the FYE JUN17 claim up to 80% of the potential rebate benefit for a minimum 3 month loan period. If you use these additional funds to undertake further eligible R&D activity to speed up commercialisation and/or delivery process within the FY16/17, it maybe eligible to claim this addition at the new 43.5% rate. Hence, dramatically increasing the claimants claim or for a startups to pay Founders/CEO salaries, etc.

*For example (FY 16/17): Claim of $1m results in a rebate cheque of $435k. RDCP will fund up to $348k for a minimum 3 month period. Thus, for FYE JUN17 your claim would be $1.348m instead of the $1m average.

By accessing funds earlier provides an opportunity for accelerating the amount of R&D performed or reduce the amount of equity capital that needs to be raised to complete these projects timely to improve shareholder value. By using this loan instrument, claimant can maintain an accelerated pace of R&D project/s that are performing and through this can reduce the time to commercialisation or delivery.

Prepayment Features: 

·         Do NOT have to change from your R&D tax service provider and/or Accountant.  

·         7-10 day approval – dependent on company financials.

·         Minimum 3 month loan period on amounts from $50,000 to $15m.

·         Cash is available now and NOT consigned out to a secondary market.

·         Establishment fee and up to 1.25% monthly non-compounded interest payments.

Key BENEFITS: 

• Do NOT have to change from your R&D tax service provider/Accountant.
• Reduces need to raise capital at an early stage when valuations cannot be easily determined and investment risk is at its highest, hence pushing back the requirement of a larger dilution of equity for a less than optimal valuation.
• Reduces or sometimes negates any need for equity dilution, some of our claimants are reaching revenue positions without any need to dilute or further dilute their equity by using the R&D debt finance to bridge them into revenue.
• Compliments the use of raising equity, some companies are using a mix of equity capital raising and R&D Tax prepayment debt finance to reduce equity dilution in their business.
• Lengthens the client’s runway, provides the funding means by which a 45% claimant may reach their next major milestone against which a higher valuation can be achieved from an equity capital raising event. 
• Increases speed to market/ first mover strategy - by having access to prepayment debt finance the start-up can increase the speed in which it can build scale and stay ahead of competitors.
• Allows the founders the comfort of raising capital at the right time and price as opposed to being compelled to raise equity when the technology or concept is proven. 

Andrew Miles

Sydney, Melbourne, Brisbane, Perth

Mo: 0431 162 212