Definition R&D tax credit advance funding is a specialised form of receivables finance that allows UK SMEs to access capital locked in their future HMRC research and development tax claims. Instead of waiting months for HMRC processing, companies borrow against the accrued value of their claim.
Validation: The company submits their R&D expenditure data or draft claim to Sprk. Sprk Capital validates the claim using credit and R&D technical expertise.
Loan-to-Value (LTV): Sprk Capital advances a percentage of the projected tax credit value, typically up to 80% of the total claim size.
Funding Speed: Once approved, funds are transferred to the company’s account, typically on the same day as signing, providing immediate working capital.
Repayment: The loan is repaid directly when HMRC pays out the R&D tax credit. The borrower retains any remaining balance after the principal and interest are settled.
Access your refund up to 12 months earlier
Boost cashflow by drawing up to 80% of your estimated tax credit
No cash
Establishment fee built in to loan
Interest rate of only 1.33% per month
Zero early repayment fees
Online
Fast approval and funding times
Zero repayments during term of Advance
Repaid
One set of standardised documents (first ranking debenture) for all Advances
SPRK are specialists in R&D finance, and we’re here to help you get the most from every pound spent on R&D.