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Loans against Research and Development tax credit claims: A critical source of extra funding?

09 Jul 19

Getting enough funding to keep innovating and investing in development of essential new products, processes or services is a critical activity for many small to medium sized businesses.

So you might be interested to know that lenders seem to be increasingly open to lending against pending or planned research and development tax credit claims. We take a brief look at what's on offer.


More lenders seem to be taking an interest in this sector, perhaps because there is better understanding of the Research and Development (R&D) tax credit schemes and more Small and Medium Enterprises (SMEs) than ever before are successfully claiming R&D tax credit.

A plus point in these loans is that not all of them require security in the form of a Personal Guarantee and many can be set up and in place fairly quickly.

They are sometime provided through introductions by partner agencies such the specialist R&D Tax Credit consultancy I work with (RandDTax) or you may find a loan specialist that will offer the facility directly via their own network of providers. 

The loans are often interest only and as you would expect the size of loans available, the interest rates and the loan terms vary from lender to lender. But most are quite flexible i.e. there is no minimum term or penalty for early repayment. They can sometime be rolled over into the following year if another R&D claim is expected.  

In a lot of cases the lenders will only consider companies that have a track record of at least two previous R&D claims although there can be alternatives such as setting up a legal escrow facility so that HMRC can pay the credit directly into the escrow account enabling the loan to be repaid before the balance is paid to the R&D tax credit claimant company.

Find out more using our contact form or book a telephone call into my diary.

Are you ready to find out if you qualify or how much your R&D claims could be worth?


Contact Us Today

For more information or to contact us - call us on 0771 9439 229 - or send us a message


For more information on claiming R&D tax credits or our business advice and support services call us on 0771 9439 229

Or send us a message

PO Box 53448,
SE18 9DE


Our consultants are members of London Group Business Advisors and Home Counties Business Advisors.

Linda Eziquiel is a Fellow of the Institute for Independent Business and a Principal Consultant at RandDTax (specialists in Research and Development tax credits) – UK co. reg. no. 08160439.

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