How quickly can I get a loan against my tax credit?
We can lend money in as little as a week (our record is 4 days from first phone call to sending the money to the borrower’s account), and this is what we aim for. We know that getting an loan quickly can be vital and a delay of days can have severe consequences. We work to our clients’ timetable, not the other way around.
We provide an R&D or other tax credit loan of up to 75% of the expected credit.
Contact us now for more information on how to secure a fast and simple tax credit loan, because having secure cashflow for your business will let you concentrate on what you do best - grow the business.
If this is of interest, please do get in touch
R&D Tax Credit Loans
What is R&D?
R&D is short for research and development and it is given a specific definition by HMRC if you want to claim an R&D tax credit. HMRC provides advice on what constitutes R&D here and it will even provide companies with Advance Assurance in cases where it can see an R&D project which will continue for several years.
What is an R&D tax credit?
An R&D tax credit is a cash payment provided by the government to encourage companies to do R&D. At the end of the financial year, companies file their CT600 and accounts with HMRC along with a claim for an R&D tax credit, based on qualifying R&D work that they have done.
When will I receive my R&D tax credit payment from HMRC?
HMRC aims to either pay or raise an enquiry on R&D tax credit applications within 28 days of receiving the CT600 tax return. However, the Revenue has not always been able to achieve this goal, which has led to cashflow issues for some companies. Our R&D loans provide certainty of payment and help companies plan their cashflows.
Why is my R&D tax credit payment late?
R&D tax credits can be delayed for a number of reasons. Sometimes HMRC is very busy, as was the case this year with R&D tax credit payments being delayed up to three months. Other times, HMRC will require further evidence to confirm that R&D has taken place and that the expenditure was actually incurred. This can delay the process by up to 12 months, depending on how many enquiries the Revue raises. Finally, HMRC can perform an audit of the company. This is not necessarily because anything is wrong with the claim, but it just a random check.
Can I borrow against my R&D tax credit?
Finstock Capital has made hundreds of loans to businesses seeking to borrow against their expected tax credits. We work with companies and provide loan finance to bridge companies to their next milestone event. That could be a fund raise, or a large contract win or delivery of a consignment of goods and products.
“Finstock Capital offer a fantastic service. When we approached Finstock Capital for an R&D tax credit advance Oliver and Edo couldn’t have been more helpful. The process was quick and straightforward, with assistance was always offered where required. I would recommend Finstock Capital very highly.
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Theatre Tax Credit Loans
At Finstock Capital we realise that funding a theatre production is no mean feat. For that reason we seek to help producers access their theatre tax credits sooner than they would otherwise be able to if they had to wait for the final accounts and approval from HMRC.
We find that, particularly for productions in the £1m-£5m budget range, banks are too slow and wary to be able to offer finance, and other lenders require things such as personal guarantees (which we do not). Finstock has a more open-minded approach and takes each opportunity on its merits. As long as the production qualifies for tax relief, we can make a loan based on the qualifying production expenditure and the post production budget, working with your accountants.
Process
From first introduction, we pride ourselves in our speed of response. So long as we can understand other funding sources, where the spend will occur, and adherence to other requirements for a theatre tax credit, we are generally able to offer funds for draw down within a two week time frame.
This means that access to tax credits can be accelerated by up to 6 months, thereby freeing up working capital for completion of the project or taking on new projects.
“We have used Finstock’s theatre tax credit lending service on three occasions so far and found them to be competitively priced, pragmatic and highly proactive in getting loans completed quickly and with a minimum of fuss.”
VGTR Loans
The Video Games Tax Relief (VGTR) is an attractive incentive that allows video games companies to claim back 20% of their eligible expenditure. We provide VGTR loans against these future credits and work with Video Games Development Companies on their business plans and fundraising. Before you start production, you will require an interim BFI certificate which confirms that the game you are planning to make will be able to claim relief. You can then claim the money on an interim basis - not necessarily once you have finished or released your game.
We work with a range of accountants, lawyers and specialists so please contact us to understand the process in more detail.
HMRC has issued helpful guidance on VGTR, which is found here and the BFI’s website guidance notes on the Cultural Test are found here. To start your application, visit the BFI website.
“Finstock provided Outright Games Ltd a bridging loan facility against our Video Games Tax Credit during the HMRC processing period . The process was straight forwards and the terms equally open and clearly explained. The documentation was some of the clearest and comprehensible I have seen in over thirty years and the finalisation of the facility was not time consuming. Oliver and Edo were responsible and business like throughout and we would certainly come back to Finstock should we need a similar facility in the future.”