FUNDING / LOAN PROCESS

Three distinct prepayment offerings are available:

1. Prior year expenditure. This offering allows eligible R&D companies to receive a prepayment against their prior year’s expenses before registering their annual activities and lodging the company’s tax return.

2. Current year expenditure. The second prepayment offering allows eligible R&D companies to draw down the loan against the current year R&D expenditure on a quarterly or half-yearly basis.

3. Longer term – against a partially funded R&D plan and budget, backed by a positive Advanced Finding – whereby the prepayment loan will be provided at the commencement of a project or financial year (capped to 60% of the R&D capital on hand).

Refer the R&DCP flyer for detailed examples of the above offerings.

The R&D Tax Prepayment Process

1. The Company develops it R&D project plan (“The Plan”).

2. The Plan is written in compliance with AusIndustry’s R&D Tax Incentive Program.

3. The Plan is approved by TCF Services to determine the eligibility of the R&D expenditure.

4. The Company applies to R&DCP for the Loan using its standardised process.

5. R&DCP completes its due diligence, typically over 1-2 weeks

6. The Loan Agreement is signed with R&DCP and upfront establishment fee paid

7. The Loan is drawn down as the Plan’s expenditure is made.

8. Monthly interest payments are made on each loan.

9. The Loan is repaid when the ATO pays the tax refund into R&DCP’s trust account and any balance refunded to the client.

 

Amount: $50,000-$3,000,000. Based on 80% of the amount of the projected tax return.

Funding: Secured loan documented in the R&D Tax Prepayment Loan Agreement.

Availability: Following the loan approval, the loan is available within two days of a drawdown notice confirming the eligible expenditure has been incurred. This can be drawdown on a monthly or quarterly basis.

Security: First ranked charge over the company registered on the PPSR.

Principle repayment: From the tax return or earlier if required by the Borrower.

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