![]() ![]() Both the stage and structure of these businesses can be turn-offs for traditional lenders such as banks. Securing steady sources of affordable capital is the number one headache for start-ups and businesses doing R&D. By contrast, Linecrest, swapped its planned annual advance for monthly Radium Advances as part of its longer-term financial strategy. Radium Capital client, FBR, used a precisely timed Radium Advance to fund vital research and optimise its next capital raise. Fast approvals, fixed costs and flexibility are three of the advance’s major drawcards. For businesses in the know, R&D financing, especially a Radium Advance is the go-to capital. You could be forgiven for thinking if bank loan or capital raising options fizzle, that’s when businesses start turning to R&D financing. Myth 2: R&D finance providers are lenders of last resort Activities classified as supporting activities that relate directly to a company’s core R&D can qualify for the RDTI too. Often their core R&D is improving their products or services. Many eligible businesses aren’t doing the type of abstract research you might imagine. There’s also significant leeway when it comes to which types of activities are considered core R&D. ![]() Radium Capital client, Quantify Technology is an example of this. ![]() By this measure, your business can have an eligible core R&D program but be involved in other non-R&D activities outside this criterion. Your business must have at least one core R&D activity that meets the Federal Government’s definition of core R&D. It’s vital to be crystal clear on whether you can apply for the Federal Government’s R&D tax incentive in the first place. This myth gets down to the brass tacks of eligibility. Myth 1: R&D must be your only or main business activity To help you do just that, we take a look at the nine most common R&D financing myths our prospective clients ask us about. But if you’re considering R&D financing as a capital option for your business, it’s vital to separate fact from fiction. Put simply, R&D finance is a loan that lets businesses access their R&D tax refunds early. So if you’ve heard of R&D advances, there’s every chance you’ve unwittingly absorbed a blend of reality and invention. Over the years, several myths have evolved about R&D financing. ![]()
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