Innovation funding to accelerate business growth
If you’re an innovative UK SME investing in Research and Development or innovative technology, we can help you access capital quicker, so you can keep growing without dilution or disruption.
Advisors
Looking to work with a dedicated innovation lender?
We work alongside accountants, advisers, VC/PE Funds and innovation specialists to deliver straightforward, non-dilutive funding for ambitious SMEs across the UK.
Which SPRK solution is right for you?
R&D Advance Loan
For quick cash flow solutions
Eligibility
All companies
Term
3 to 12 months
Repayments
When HMRC pays.
R&D Flexi Loan
For funds that work around you
Eligibility
Early stage revenue
Term
12 to 24 months
Repayments
R&D with payments on your terms.
R&D Term Loan
For timeframes that work for you
Eligibility
Revenue generating
Term
36 months
Repayments
Monthly principle and interest.
Eligibility
All companies
Term
3 to 12 months
Repayments
When grant body pays.
Our simple four step process
Check
eligibility
Step 1: Start our digital application process
Apply
Online
Step 2: Complete application through our secure Portal
Get your
Decision
Step 3: Quick and transparent decisions
Funds
paid out
Step 4: Funding within minutes of signing
Innovation Funding that moves at your pace.
We work with ambitious small businesses in the UK and high-growth startups building what’s next through research, technology, and innovation.
Innovation cycles and funding cycles rarely move in sync. SPRK ensures your innovation funding keeps pace with your ambition through flexible innovation loans and R&D tax credit loans.
We provide smart, non-dilutive funding that funds cash advances on R&D tax credits and UK Innovation Grants. Backed by the British Business Bank, we combine institutional strength with a straightforward, founder-focused approach.
Built by people who understand innovation. Designed to keep you moving.
Frequently Asked Questions
Who is SPRK?
SPRK is the leading dedicated lender to businesses engaged in innovation. Working with British Business Bank and an Investor Partner of Innovate UK we provide capital that moves at the speed your business needs.
Does my business need to be making a profit to be eligible?
No, SPRK typically lends to loss making businesses – many of which are also pre-revenue.
What sectors does SPRK lend to?
SPRK focusses its lending on the sectors that drive UK innovation. We do not lend to Construction Companies, Money Lending businesses and those where there may be a moral hazard from lending (such as Weapons Manufacturing / Sales or the Adult Entertainment businesses).
Do you take Personal Guarantees?
No, SPRK does not typically take Personal Guarantees. Our loans are secured against the company.
What security does SPRK take?
SPRK takes a first charge fixed and floating debenture over the business.
What happens if I already have an existing charge on my business?
SPRK will request a first charge over the business and if this is not available we can discuss this with you on a case by case basis.
Can I pre-pay my SPRK loan?
Yes, you can pre-pay your R&D tax credit loan or Innovation Advance Grant Loan at any time without penalties.
What does R&D stand for?
Research and Development is defined as any activity that leads to the innovation of new products, processes, or services or improvements to those that already exist. Guidance is given by the Department for Science, Innovation and Technology: Meaning of research and development for tax purposes: guidelines – GOV.UK
What are the benefits of R&D Tax Credit Loans?
Companies can wait over 15 months from the moment they start incurring R&D expenditure to when they receive their R&D tax credits, this is where SPRK comes in. We advance against your incurred R&D expenditure at any point in the financial year. Many companies take an advance against their R&D tax credits to optimise their cashflow, either reinvesting more into R&D, extending their cash runway or using R&D Tax Credit Advances as a non-dilutive source of capital to help their growth, meaning founders are not selling equity in their businesses to finance expansion.
Is there a difference between an R&D Tax Credit Loan or R&D Advance Funding?
Both terms are used interchangably to define when a company looks to borrow money against its expected tax credit.
Which companies are eligible for R&D Tax Credit Loans with SPRK?
Companies that invest in research and development, making advancements on a technological or scientific basis, typically qualify for R&D tax credits. To be eligible for a SPRK R&D Advance, you’ll also need to work with one of our SPRK Approved Advisors, or be willing to have your R&D tax calculations and/or submission reviewed by one.
What are SPRK ’s criteria for applying for R&D Tax Credit Loans?
Companies must have at least 3 months cash runway and not be reliant on unconfirmed equity raises when applying to SPRK, each company is assessed against SPRK’s underwriting criteria in place at the time.
Do I need an R&D tax advisor to make an application to SPRK?
Yes, you will need to work with one of our SPRK Approved Advisors or be willing to have your tax calculations reviewed by one of our SPRK Approved Advisors. This ensures that we continue to work with clients that are getting best in class advice on their R&D tax credit submissions.
How much can I borrow?
SPRK lends from £75,000 to £1.5m+.
How much will SPRK lend against my R&D Tax Credit?
SPRK will lend up to 80% of your expected R&D tax credit for an Advance and up to 150% of the value for our Term Loans.
How long does it take to apply for an R&D Tax Credit Loan?
Typically our online process is quick and easy to complete, once we have all the information we look to provide decisions within 24-48hrs.
How long does it take post approval to fund my Tax Credit Loan?
Post approval we look to issue loan agreements, which remain valid for 7 days. Funding is provided the same day as signing.
Is there a minimum term on my R&D Tax Credit Loan?
SPRK has a minimum term of 3 months on any R&D tax credit advance.
What happens if I have outstanding PAYE or a Time to Pay arrangement with HMRC?
HMRC typically nets amounts that are overdue on PAYE against the R&D Tax Credit, irrespective of if this is on a Time to Pay arrangement. For this reason SPRK will not lend where debts are owed to HMRC. We can work with you to clear outstanding HMRC balances from your SPRK advance or for our Term Loans and Grant Advances understand any Time to Pay arrangements that you have in place.
How does repayment work?
SPRK’s bank details are used on the CT600 tax return. HMRC pays the R&D tax credit to SPRK, where we settle the outstanding principal and interest and return the excess to you within 24hrs.
Do I need to make interest payments on my R&D Tax Credit Loan?
Interest is calculated on your SPRK R&D Advance and added to the loan principal. There are no interest payments during the term of loan, interest is settled at the end of the loan.
What happens if HMRC does not pay my R&D tax credit?
If HMRC reduces or declines or R&D tax credit you are still liable for the loan. The R&D Tax Credit Loan is a secured loan, in these cases SPRK will work with companies to find an affordable repayment solution.
What is Grant Advance Funding?
Companies that are awarded Innovation Grants can often wait for up to 5 months or longer from the moment they start incurring expenditure to when the Grant Award body pays out. SPRK bridges this gap helping companies reduce the need to raise expensive equity to fund their Grant projects.
What are the benefits of Grant Advance Funding?
Innovation Grant Advance Funding from SPRK is a non-dilutive source of capital that can reduce the capital requirements for a typical Government grant project by more that 50%, SPRK does this with a product called a SPRK Grant Advance.
Am I eligible for an Innovation Grant loan?
If you are in the process of being awarded or have been awarded an Innovation Grant please contact the team at SPRK to understand how we can help your business. We will only lend to a business when they are in receipt of their signed Grant Award Letter.
Can SPRK help through the Grant application process?
SPRK does not advise on Grant applications, we can however discuss the financing aspects of your Grant award ahead of, during or after your Grant submission. We have a number of partners who can assist with the preparation and submission of grant applications.
What are SPRK ’s criteria for applying for Grant Advance Funding?
Companies applying for a SPRK Grant Advance Funding must demonstrate the ability to fund any grant costs that are not covered by the SPRK Grant Advance.
How much can I borrow?
SPRK lends from £50,000 to £1.5m+.
How much will SPRK lend against my Innovation Grant?
SPRK typically advances up to 80% of each quarter / milestone on the first day of the period. This means you have the cash in your bank to fund your expenditure ahead of incurring it.
How long does it take to apply for an Grant Advance Funding?
Completing our SPRK Grant Portal is quick and easy, the SPRK team is also here to support you through your application. Applications can be done in as little as 15 minutes.
How long does it take post approval to fund my Grant Advance Funding?
Post approval we look to issue loan agreements, borrowers have 72 hours to sign these agreements and funding is typically within 24-48hrs of signing.
Is there a minimum term on my Grant Advance Loan?
SPRK has a minimum term of 3 months on any Grant Advance loan.
How does repayment work?
Companies are required to settle each SPRK Grant Advance with the receipts from their Grant Award payments within 48hrs of receipt of payment.
Do I need to make interest payments on my Grant Advance Loan?
Interest is calculated on your SPRK Grant Advance and added to the loan principal. There are no interest payments during the term of loan, interest is settled at the end of the loan.
What happens if my Grant payment does not cover the Grant Advance loan?
SPRK works with borrowers to ensure that this situation does not occur. However, in circumstances where the grant payment is reduced or declined the company is still responsible for settling the loan. We will work with borrowers on a case by case basis if this occurs.
