An Innovation Term Loan is finance that lets an R&D-active UK company borrow against the strength of its established R&D tax credit track record to create longer-term working capital — capital it repays in structured monthly instalments rather than from a single claim.
At SPRK Capital this is our Innovation Term Loan (also referred to as our R&D Term Loan). You can borrow up to 150% of your most recent R&D tax credit and repay over a term of up to 36 months. It’s the non-dilutive alternative to venture debt — funding growth without giving away equity or board seats.
An R&D Advance funds you against one claim and is repaid when HMRC pays. An Innovation Term Loan does something different: it uses your proven, recurring R&D spend as the basis for a larger facility and a longer runway. Rather than bridging the wait for one credit, you convert an established innovation track record into committed working capital — money you can put to work on hiring, product and growth over the next few years, not just the next few months.
We lend up to 150% of your most recent R&D tax credit. The exact figure depends on the size and consistency of your claims, your company’s stage and circumstances, and the strength of the underlying R&D. Because the loan is sized against a demonstrated history of qualifying spend rather than a single estimate, it can unlock materially more capital than a claim-by-claim advance.
The application is online and our credit and technical teams assess submissions quickly. Once approved, funds are released under one set of standardised documents, so there’s no drawn-out legal process between approval and drawdown.
The loan is repaid in simple monthly instalments over a term of up to 36 months, giving you predictable, manageable outgoings rather than a single lump-sum repayment. There are no early repayment fees, so if your circumstances change — a funding round closes, or a future tax credit lands — you can settle early at no extra cost.
An Innovation Term Loan is fully non-dilutive: you keep your equity, your cap table and your control. It’s made to your company and secured by a first-ranking debenture, with terms designed around your R&D profile rather than around an investor’s return expectations. For founders who want a longer runway without raising — or who want to extend the runway between rounds and protect their valuation — it sits alongside your other funding solutions rather than competing with them.
Access capital to accelerate innovation
Boost cashflow by borrowing up to 150% of your tax credit
No cash
Establishment fee built in to loan
Interest rate of only 1.5% per month
Zero early repayment fees
Online
Fast approval and funding times
Simple repayments during term of Advance
Repaid
One set of standardised documents (first ranking debenture) for all Advances
SPRK are specialists in Innovation Loans, and we’re here to help accelerate your business.