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Could You Be Receiving R&D Tax Breaks Earlier?

Without a doubt, financing is extremely imperative for innovation and development, in particular at the seed and early stages of business development. In spite of the growing importance of entrepreneurial activities, innovative companies face several barriers for accessing finance, such as asymmetric information and financing gaps between investors and entrepreneurs. Indeed, access to finance is a central issue for both innovative entrepreneurs and policy makers alike.

However, many companies focused on innovation are missing out on ways they can boost their cash flow to provide money to meet expenses. One method of improving cash flow is through capitalising on government programs designed to foster new technologies. These are typically administered through the tax system, such as the R&D Tax Incentive.

The R&D Tax Incentive allows a 43.5% refundable tax credit for entities with under $20 million in turnover, and a 38.5% non-refundable tax credit for companies with greater than $20 million in turnover. The size of the credit is based on identified expenditure from R&D related activities during a given financial year.

In response to an increasing need for access to cash flow, Swanson Reed has just introduced a new R&D tax refund financing service to our clients. With an R&D Tax Offset Financing service, companies undertaking R&D projects are able to receive the benefits of the AusIndustry R&D cash rebates prior to receipt from the Government. Fundamentally, this means that companies can access their R&D Rebates early, allowing businesses to fast-track their access to cash flow and further support their R&D Activities.

As with any financing decision, a company must carefully consider whether the terms, charges and interest rates of an offering meet their specific needs. Swanson Reed has analysed various R&D Tax Offset finance solutions and is able to refer companies seeking such products to dedicated finance professionals. Swanson Reed receives absolutely NO financial incentive or commission from our clients’ financing of R&D Entitlements. This independence means we are best placed to refer only the most suitable finance professionals for our clients’ particular needs.

See our service page for more information on this funding.