Tag Archive for: Business Loans

grant funding

Is there a right time to apply for grant funding?

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Applying for grant funding can feel like a challenging process. However, receiving that funding can be transformative for a business and well worth the effort. There are lots of benefits to applying for grant funding, no matter what your industry or the type of business that you have. If you’re considering making an application then it’s going to be vital to make sure that you get the timing right.

 

Why apply for grant funding?

  • Accelerate project timeframes – If you’re successful in applying for grant funding this can provide you with vital resources that significantly speed up existing project timeframes. It could help to reduce the time to market for a product or service and put your enterprise ahead of the competition as a result. There are lots of obvious advantages to this, from increasing the commercial returns – and the speed at which they are accessible – to reducing financial risk. This funding also helps to improve business growth by allowing for more ambitious projections and plans without the need to give away any equity.
  • Access collaboration – The right grant funding will also open the door to collaborations that might be vital to delivery, whether that is with industry, academic or research partners. Collaborations can be beneficial for enterprises at any stage, especially as they tend to open up access to new technologies, expertise, processes and techniques.
  • Cover a broad spectrum of costs – Typically, grant funding can be used to cover a broad spectrum of costs, including staff costs at a rate of up to 70%. This can be essential cash flow, especially as it doesn’t come with the requirement to make repayments, pay interest or give away any equity in order to be able to access the funds.

 

What is the right time to apply for grant funding?

The main reason that it’s key to consider timing when it comes to grant funding is because the process of application can be months long. In fact, it usually takes around six months to apply for grant funding. So, if you’re looking at grant funding for your business it’s essential to factor in the time that it’s going to take to apply for the grant and to receive it into the business. Research, completing the application and waiting for a decision will all be part of this process. It’s also worth remembering that the timing of grant funding could also have an effect on how impactful your project is able to be. Getting your application in well in advance could mean that you receive grant funding at exactly the right moment to access beneficial factors in the external environment. It can also trigger connections with potential partners at exactly the right time and accelerate project growth.

Timing is as important for grant funding as ensuring that you pick a grant that is going to be the right fit. Give yourself plenty of time to complete the application process and time it so that the benefits will land at just the right moment to accelerate both the project and future growth.

 

Grant Advance Funding through SPRK Capital

SPRK Capital are a leading provider of R&D tax credit loans and grant funding loans in the UK. We support innovative SMEs by giving them access to their capital when they need it.

To find out more about how we can advance your grant funding to you, visit our ‘Grant Loans‘ page.

how to create a grant-fundable project

How To Create A Grant-Fundable Project

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There is plenty of grant funding available for innovation projects today. However, being able to access this funding depends on how you define the project before you even start the process of writing the bid. If you want to create a grant-fundable project then it’s essential to have firm foundations in place to ensure that you’re clear about the project, have a consistent narrative and can demonstrate to assessors why funding is deserved. Here are 5 specific questions to focus on if you want to avoid wasting time and ensure that you’re creating a grant-fundable project.

 

What are the objectives and outcomes of the project?

The key to getting funding for your project will be whether there is a good opportunity here that has been well researched. Equally as important will be whether you have shown a clear connection between the problem that you’ve identified and the solution that you’ve come up with. It’s going to be important to be able to include market research that shows solid knowledge of the market and a strategy to enter it, as well as how the project is going to be able to generate commercial returns once it’s up and running. Remember that even a small percentage of a big market is going to generate a big financial return. At this stage it’s useful to focus on project management too – are you going to opt for an ‘agile,’ incremental, iterative approach or a linear and sequential ‘waterfall’ approach?

 

Have you defined the human resources?

You don’t need to put all your people on the project 100% of the time. Instead, it can be useful to look at the various skills and abilities of the people in your business and use them intelligently. Assessors are going to want to see evidence of resources being applied in the most efficient way possible to meet goals, as opposed to broadly and with less attention to detail. It can also be really useful to have identified partners for your project – this can boost credibility and support the idea that your objectives are achievable. Partners can bring new skills to a project, add experience or insight and add a whole range of new solutions. When you’re choosing a project partner, focus on the area where you most need support, whether that’s design or technology or something else.

 

What are the costs involved?

When you’re applying for funding it will obviously be vital to ensure that you have a robust set of figures to base your application on. The main focus for assessors will be determining whether your project offers value for money. Depending on the grant you’re applying for there will be different factors involved in the financial side of the application. It’s important to apply for the right level of funding using the criteria of the fund that you’re applying to (for example, Innovate UK defines funding levels on factors like organisation size and project maturity). Be very specific about the costs that are involved in the project – make sure the costs are appropriate for the project but that you’re not underestimating them. Aim for the eventual outcome of what you need to achieve the minimum viable product or your idea, rather than simply opting for the maximum grant available. Check whether there are any ineligible costs that could create problems for your funding further down the line if you include them now.

 

How will you handle the Intellectual Property (IP)?

Wherever there is innovation there is a need to properly define and protect intellectual property. If IP is not protected, or it is lost, then this can have a big impact on the size of the commercial returns that you’re likely to be able to generate. This is why it’s such a key part of the project process and needs to be clearly outlined when you’re making an application for a grant. The worst case scenario is that you get to the end of the project and realise that commercial returns have been completely eliminated because the IP was not properly set up during the earlier stages. It’s often useful to work with an IP specialist if you’re not sure how to approach this – they will help you to explore all the options when it comes to IP, not just patents. Think about the outputs of the project that you’ll need to use IP for in order to protect your opportunity to commercially exploit what you create.

 

How are you going to ensure ongoing compliance?

If you’re successful in creating a grant-fundable project, the obligations don’t end with approval. So, it’s going to be essential to have the skeleton of project management clearly laid out in advance. This will not only ensure that your project is completed on time and on track but that you can remain compliant with the requirements of the grant funding. There will be specific reporting intervals during the project that come with required documentation and milestones. These include progress reporting and financial reporting, as well as being able to effectively manage any changes that you want to make to the project once it’s under way. Accurate reporting is going to be a vital part of ensuring that the cash flow of a project remains healthy and that you’re able to comply with the requirements of the grant. If you don’t have the resources to handle this in-house already then it’s always worth seeking the support of a specialist advisor. If you start to feel overwhelmed by reporting requirements, how to respond to them and manage them, there are professionals in grant project management who can help.

 

These 5 questions are key to ensuring that you’re creating a grant-fundable project. Although much of the work in innovation happens after funding has been received, it’s what you do before you even submit your application that will determine whether the project gets the funding necessary to begin. From reporting requirements to IP, human resources and costs, all of these need to be considered when you’re creating a grant-fundable project.

SPRK Capital, information sourced from Granted Consultancy – a Ryan Company.

R&D Tax Credit Loans VS Business Loans

R&D Tax Relief VS Business Loans

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Business financing can be a real challenge for SMEs and start-ups. Especially in the early stages of development it’s difficult for enterprises to secure attractive financial investment and many will opt for business loans instead. However, the reality of traditional business loans is that they can be expensive and there may be other much smarter options available. One of those options is R&D tax relief, which can provide a source of funding for many SMEs, without the expense attached to traditional business loans.

 

Fuelling expansion plans without debt

 

R&D tax relief creates options when it comes to expansion by generating another source of cash flow for the business that is set off against R&D spend. So, for innovative organisations that are carrying out eligible activities, there are much better options available than taking out traditional business loans. R&D tax relief can be a straightforward way to fuel expansion plans without harnessing the business to debt – and the substantial amounts involved can make this a smart choice for any SME looking to expand and accelerate growth.

 

The average claim is £53,000

 

The average claim stands at around £53,000, which is an amount that can make a big difference in an SME environment. Its is available on a tax-free basis and it’s also interest free, which is not something that can be said for traditional business loans. Whether your organisation is looking to survive through challenging times or fund growth over the coming years, this funding can be vital, especially as it doesn’t come with interest attached. During the pandemic there were many SMEs that only managed to stay afloat due to smart use of R&D tax relief and this is the kind of source that can provide a safety net for any organisation today, whether affected by energy price rises or increases in the cost of living.

 

A government incentive for innovative businesses

 

R&D tax relief is aimed at those businesses that are investing in eligible R&D. Any limited company can claim under either the scheme for large businesses or the scheme that is aimed at SMEs – there are no limits on industry. It’s the R&D activities themselves that will determine whether or not a business is likely to be eligible for R&D tax relief. It’s thought that, currently, around 97% of companies that are eligible for R&D tax relief are not claiming under the scheme so it’s a source of funding that is often simply going to waste. R&D tax relief works by setting off a percentage of the investment in eligible R&D activities against future tax liability or making this available as a cash tax credit.

 

If your business might be one of those SMEs that is eligible but not currently claiming then you may be missing out. There are many more optimum solutions for funding than traditional business loans – and R&D tax relief is one of them.

 

We’re passionate about supporting businesses that are brave and bold in staying ahead of the curve and are creating economic growth and opportunities for our country. With SPRK Capital, you can get advance funding on your R&D tax claim.

 

Contact us today to find out if you’re eligible.