How R&D Finance Powers Equity-Free Growth for Australian Innovators

The biggest challenge for innovative Australian businesses isn’t lack of ideas. It’s timing.

Companies spend heavily on research and development (R&D) to build new products, improve systems, test ideas, and solve real-world problems. Yet the R&D Tax Incentive return on that spend is delayed, usually arriving months later and in some cases up to a year after the initial investment

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That delay can put pressure on cash flow, hiring decisions, and delivery timelines.

More and more startups and scaleups are solving this timing gap using R&D finance as part of a smarter capital strategy. By accessing their expected refund earlier, they’re able to reinvest into innovation and create what Advanced refers to as the Capital Flywheel:

Spend on R&D → Access refund early → Reinvest → Accelerate → Repeat

That’s how momentum is built, and protected.

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What is R&D Finance?

R&D finance is a form of equity-free funding secured against a company’s expected R&D Tax Incentive refund.

Instead of waiting for the ATO to process and return eligible funds, businesses can unlock their refund within days, not months.

That means they can:

• Maintain development momentum
• Protect ownership and control
• Reduce cash-flow pressure
• Continue investing in innovation cycles
• Avoid unnecessary equity raises

For many founders and finance teams, R&D finance transforms a delayed government incentive into an immediate strategic tool.

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Who Uses R&D Finance?

R&D finance is not limited to one industry. It’s used across:

• AI and deep tech
• Biotech and medtech
• Software and SaaS
• Advanced manufacturing
• Engineering and robotics

Advanced works alongside R&D advisers and accountants to ensure companies can access capital without disrupting their existing tax preparation processes.

Whether a business is developing IP, automating production, trialling new materials, or building new platforms, R&D finance helps support long, complex development cycles.

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How the R&D Funding Process Works

From an adviser and client perspective, the process is designed to be fast and low-friction:

1. The company (or adviser) submits basic details about current R&D activity
2. The claim and eligibility are assessed in collaboration with the R&D adviser
3. Once approved, funding typically arrives within 1–2 business days

The system is intentionally built for clarity and speed, not complexity.

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Why Advisers Are Turning to R&D Finance

Accountants, CFOs and R&D consultants are increasingly including R&D finance in their toolkit because it:

• Supports cash flow between funding cycles
• Keeps clients equity-intact
• Helps businesses scale without waiting
• Works alongside existing R&D Tax claims
• Improves long-term client resilience

As one founder put it:

“Advanced has been an incredible partner. Their funding came at critical times, not only helping us survive but letting us move faster. What sets Advanced apart is that they actually take the time to understand your story, not just your spreadsheet. That’s rare. It’s the best form of non-dilutive capital we’ve found — low cost, high impact, and designed for founders actually building something. If you’re an innovative business doing real R&D, this kind of funding should be a no-brainer."
‍‍‍- Rikky Burkett, Founder of Black6

This kind of support doesn’t just help founders, it strengthens the entire advisory ecosystem around them.

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Beyond Funding: A Shift in How Innovation is Supported

Traditional lending is based on historic data and physical assets.

But innovation happens in the future:

Prototypes, experimentation, emerging technology, and unproven solutions.

R&D finance acknowledges that progress isn’t always on the balance sheet yet, and bridges that gap responsibly.

Instead of slowing down to meet outdated funding models, companies can:

• Build sooner
• Hire at the right time
• Move to market faster
• Stay globally competitive
• Keep innovation local

R&D finance isn’t about replacing banks.

It’s about supporting the gap they don’t currently serve.

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The Real Outcome: Momentum

Innovation needs momentum.

Momentum needs capital.

Capital should move at the pace of builders.

By bringing future refunds into the present, R&D finance creates:

• Predictability
• Stability
• Confidence
• Flow

And when momentum is uninterrupted, real progress follows.

That’s the Capital Flywheel in action.

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