Research and Development (R&D) Tax Credits are a vital financial resource for businesses investing in innovation. However, these credits are typically only accessible after the end of the financial year, which can create cash flow challenges. Advanced Funding offers a solution by allowing businesses to access their R&D tax credits at any point during the financial year, up to 12 months early.
How Does Advanced Funding Work?
Introduction to an Advanced Funding Specialist:
- Leyton UK acts as a strategic partner, introducing businesses to an Advanced Funding specialist who provides the necessary funds.
Preparation and Comfort Letter:
- Leyton UK prepares the R&D Tax Credit claim as usual and provides a comfort letter to the Advanced Funding specialist.
Underwriting and Fund Release:
- The Advanced Funding specialist undertakes an underwriting process. Upon approval, they release the funds to the client.
Submission and Repayment:
- At the end of the financial year, when the R&D Tax Credit claim is submitted to HMRC and the funds are received, the client repays the Advanced Funding specialist.
Benefits of Advanced Funding
- Improved Cash Flow: Businesses can access funds when they need them most, rather than waiting for the end of the financial year.
- Continuous Innovation: With early access to funds, companies can maintain momentum in their R&D activities without financial interruption.
- Strategic Financial Planning: Advanced funding allows for better financial planning and resource allocation throughout the year.
Advanced Funding bridges the gap between the time when R&D expenses are incurred and when tax credits are received, ensuring that businesses can continue to innovate and grow without financial constraints. With the support of Leyton UK and their strategic partnerships, accessing these funds has never been easier or more efficient.
