Frequently asked questions
The basics
For founders who haven't heard of the R&D Tax Incentive
What is R&D financing?
Your R&D Tax Incentive refund is capital you've already earned. The Australian Government owes you 43.5 cents for every dollar of eligible R&D spend. The problem is they don't pay it out until October or November, months after the financial year closes.
R&D financing advances that refund before the ATO processes it. You get access to your capital now, not in ten months. When the refund arrives, it repays the facility. No monthly repayments, no equity, no personal guarantees.
R&D financing advances that refund before the ATO processes it. You get access to your capital now, not in ten months. When the refund arrives, it repays the facility. No monthly repayments, no equity, no personal guarantees.
I didn't know this existed. Am I late?
No. R&D financing is available at any point during the financial year, not just at EOFY. You can draw against your year-to-date eligible spend from as early as the first quarter. The later in the year you are, the larger your accrued refund, so the more you can access.
Is this a loan?
Technically yes. Practically, it behaves nothing like one. There are no monthly repayments. No lender sitting across the table asking about your revenue. The security is your anticipated RDTI refund, not your assets, your house, or your cap table. When the refund lands, it repays the facility in a single payment and it's done.
Who is this for?
Australian companies with eligible R&D spend under the R&D Tax Incentive program and aggregated annual turnover under $20 million. You don't need to be profitable. You don't need a VC on your cap table. You need eligible R&D spend and an active or planned RDTI registration.
What's the minimum spend to qualify?
The RDTI program requires a minimum of $20,000 in eligible R&D expenditure. As a practical guide, companies with $200,000 or more in annual eligible spend typically find the economics of R&D financing work clearly. Below that threshold, it's worth running the numbers for your specific situation.