R&D Funding: Support innovation in your business

Research and development are vital to the growth and evolution of any business today but it can be a real challenge to access R&D funding, especially when the economy is in a state of flux. Traditional funding sources are hard enough to access but even tougher when there is a lower appetite for risk. According to one source, around 100,000 SMEs are turned down for credit every year, which shows the extent of the problem. However, there is another solution when it comes to R&D funding – using R&D tax credits.

R&D tax credits as a source of R&D funding

Given the challenges that exist for any business when it comes to R&D funding – but especially for small and medium-sized enterprises – it is vital to know what options are available to your business outside of the more traditional channels. R&D tax credits provide a way to claim back the tax on what has been spent on research and development in the past and use it to fund the initiatives in your business in the future. Tax incentives to help with R&D have become a real priority for the government in recent years because they benefit the whole economy. In fact, this year the biggest ever budget for R&D tax credits has been announced so that more businesses can benefit.

How does it work?

Being able to claim the rather generous tax relief (230%) is not guaranteed for every organisation and every project. It is important to bear in mind that you will need to be able to demonstrate that the activities you are including come under research and development criteria and that the way you are spending on this is allowable. However, if you are successful then R&D tax credits can provide a reliable source of R&D funding that could give your business a whole new lease of life when it comes to innovation and development going forward.

What are the other options?

Of course, R&D tax credits are not the only option out there when it comes to R&D funding and there are other sources to consider too. If your business is not eligible for credit from a traditional bank then there may be grants available, especially if you are operating in areas such as emerging technologies or health and life sciences. Crowdfunding is another option for R&D funding and can bypass many of the traditional restrictions that might have prevented your business from being eligible for credit.

If you’re keen to attract more R&D funding for your business there are many options available – R&D tax credits is one of the best out there. In the instance of making and R&D claim, SPRK Capital can advance these funds to you, giving access to more capital quicker.

We would love to talk to you further about how we can help you free up more cash flow, contact us today.