top of page
Nighthawk Logo (grey)

Financing Growth

R&D Tax Credit

An advance on an upcoming HMRC R&D Tax Credit refund

Eligibility

- You have done some R&D eligible under the HMRC SME Scheme, and

- You are currently loss-making, and either

- You are using an R&D Tax Consultant, or

- You have at least 3 years history of filing for R&D Tax Credit without it being contested or queried

2

Purpose

An R&D Tax Credit advance can be used for a number of reasons:

- accelerate your growth

- delay an upcoming fund raising

- provide a cash buffer

​

There are usually no restrictions on the use of cash provided in an R&D Tax Credit advance.​

​

There can be spending covenants tied to an R&D Tax Credit loan where the business must stay within strict spending pre-agreed guidelines.  This is done to ensure the business does not run out of cash prior to the HMRC Tax refund. 

 

We will also ask our or a third party's bank details are on the CT600 form in order to avoid agency risks. Finally, we will hold a fixed and floating charge over the business for the duration of the loan and will usually need to the senior-most lender.

3

Timing & Size

R&D Tax Credit can be issued up to 4 months ahead of the filing of a CT600.​

​

The due diligence is relatively quick, with about a week being standard.

 â€‹

We will fund up to 80% of the R&D Tax Credit money spent to date.  As we lend up to 4m in advance, it is possible to top up the loan amount as more money is spend on R&D during the year.

4

Typical Terms

Establishment Fees: 3%

Interest Rate: 18%

Warrant: None

Duration: Typically 6 months (3-4m ahead of filing + 2-3m for repayment) â€‹

Nighthawk Logo (clear)
  • White LinkedIn Icon

2 Catherine Place
London, SW1E 6HF

United Kingdom

2C Parc d'Activités
8308 Capellen

Luxembourg

Nighthawk Partners Limited, Registered in the UK at Companies House 13056067

Nighthawk Advisors LLP, Registered in the UK at Companies House OC448063

Nighthawk Luxembourg SàRL, Registered in Luxembourg, Numéro d'immatriculation B290600

bottom of page