ArchOver unveils R&D advance business loans
BUSINESS lending peer-to-peer platform ArchOver has gone live with its research and development loans.
The research and development (R&D) advance product range was first touted in February and lets businesses that can show they are claiming R&D tax credits from HMRC secure a loan against this commitment.
Borrowers will pay rates from 12 per cent and lenders will receive interest from 10 per cent per year.
“Investment in research and development is crucial not only to individual businesses, but to the wider economy as well”, said Angus Dent, chief executive of ArchOver.
“While the government deserves praise for unlocking cash for R&D, the long wait for reimbursement puts this funding out of reach for many of the businesses that stand to benefit most.”
The service is available to companies that can demonstrate a history of successfully claiming R&D tax credits from HMRC, with at least two years’ successful claims. It provides a six-month advance of up to 70 per cent of the estimated value of an R&D claim, with a minimum loan of £250,000.
Read more: Making the most of your money