ArchOver launches R&D funding bridge for UK innovators
ArchOver, the P2P business lending platform, is now helping businesses to bridge the funding gap that prevents them continuing to grow their business whilst waiting for their R&D tax claim to be repaid. ArchOver’s Research & Development Advance (RDA) service is the first provided by a P2P lender funding advances upward of £100k. This bridging finance enables organisations to use their pending R&D tax credit, based on two years’ successful claims, to raise funds from ArchOver’s community of lenders.
Angus Dent, CEO of ArchOver, said:
“Investment in research and development is crucial not only to individual businesses, but to the wider economy as well. While the government deserves praise for unlocking cash for R&D, the long wait for reimbursement puts this funding out of reach for many of the businesses that stand to benefit most.”
Only 1.67% of national income is currently being spent on R&D compared to an average of over 2% across the EU. Government initiatives have been put in place to encourage further investment in innovation in the UK. Under the current system, UK businesses can claim cash repayments of up to 33% of their R&D expenditure, but it can take up to six months to receive payment from HM Revenue & Customs (HMRC). ArchOver now helps qualifying companies to bridge this gap, and connect them with the money they need to invest in the products and services of the future.
“ArchOver is committed to unlocking access to capital while providing new opportunities for investors. With the RDA service, businesses no longer need to worry about having to wait for months to be reimbursed for R&D, which means they can start putting their investment plans into action immediately. That’s great news for individual businesses, and for the UK economy generally.”
ArchOver’s RDA service is a short-term loan that helps businesses overcome the cash flow problem associated with investing in R&D. Lenders that invest in RDA loans through the ArchOver platform will earn a solid return on their cash, with a rate of 10% p.a.. This service is available to companies that can demonstrate a history of successfully claiming R&D tax credits from HMRC, with at least two years’ successful claims. It provides a six month advance of up to 70% of the estimated value of an R&D claim, with a minimum loan of £250k.