Funds Now! Instead of the end of 2017

[Andrew Miles]

Hi All, Happy New Year and hope 2017 is as exciting as 2016.

 

I am following up to my previous communication last year regarding a prepayment facility and to recap; R&D Capital Partners (RDCP) is a specialist financier that can provide R&D tax refundable claimants the ability:

·         to use their 30^th June 2017 FYE R&D tax rebate, accountant/service provider or internally prepared, funds NOW; instead of waiting till September 2017 to receive through the ATO system while in addition,

·         using these funds will dramatically increasing the 16/17 claim rebate.

 

i.e.:

 

1.    If the claimant has NOT yet received its FYE 30^th June 2016 R&D tax rebate funds. RDCP can provide up to 80% of this rebate (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 $100k results in a rebate cheque of $45k. RDCP will fund up to $36k for a minimum 3 months.

2.    On a quarterly basis, RDCP can pay the claimant’s incurred expenses against the FY 16/17 claim up to 80% of the potential rebate benefit for a minimum 3 month loan period. If the claimant uses these additional funds to undertake further eligible R&D activity to speed up commercialisation, recruitment and/or speedup the delivery process within the FY16/17, it could be eligible to claim this addition at the new 43.5% rate. Hence, dramatically increasing the rebate.
*For example (FY 16/17): Claim of $100k results in a rebate cheque of $43.5k. RDCP will fund up to $34.8k for a minimum 3-month period. Thus, for FYE JUN17 your claim would be $134.8k instead of the $100k average.

By accessing funds earlier provides an opportunity for accelerating the amount of R&D performed or to 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, the claimant can maintain an accelerated pace of R&D project/s that are performed 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/Accountant (i.e. Big4, external accountants or service provider, etc..).

·         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 further secondary market.

·         Negotiable establishment fee and up to 1.25% to 1.5% monthly non-compounded interest payments.

·         Multiplies your firm’s innovation dollar. 

 

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 43.5% 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 has over 22 years experience across diverse executive roles including: Compliance and Operational Risk Management; Regulator Audit (AusIndustry and ATO); Project Management; Corporate Governance and Practice Development. Over the past 13 years, Andrew has specialised in providing R&D tax compliance, RM and Audit servicing to Australian firms (SME to ASX 50) across a wide variety of industry sectors, specifically: IC&T/SaaS, Defence Industries, Mining, ADI/ FS, and FMCG.

 

Regards

Andrew

 

 

 

 

 

Andrew Miles

Partner

Sydney, Melbourne, Brisbane, Perth

https://au.linkedin.com/in/andrewjmiles

Cell: 0431 162 212

and...@rdcapital.net.au

Suite 4, Level 11, 470 Collins Street, Melbourne, 3000

Phone 03 7001 6444