R&D CAPITAL PARTNERS NEWSLETTER | 31.03.2020
Debt v Equity
Are you dependant on an uncertain and expensive capital raise?
Are you losing more equity before the preferred time to dilute?
Have you considered seeking debt funding based on your R&D receivable?
Now is the perfect time to consider your funding requirements for conducting R&D Tax Incentive activities in the current and next financial year.
R&D Capital Partners Pty Ltd have provided debt funding over the past five years to numerous entities, both public and private, based on eligible expenditure incurred and budgeted to be incurred in the current financial year. The attraction of our debt funding, when applied against eligible R&D activities, may result in a 43.5% return on the R&D debt funding loan amount.
Entities undertaking eligible R&D activities can draw down loan funds now on eligible expenditure incurred rather than waiting until AusIndustry registration, preparation and lodgement of your tax return after the end of the financial year.
Planning your cash requirement? This should be part of the mix.
Short of Funding Pty Ltd realised their cash reserves would not enable them to continue their R&D activities at the pace they desired and required during the current tax year. Options were limited as current shareholders’ investment dollars had been exhausted with diluting further equity seeming to be the only option.
After approaching R&D Capital Partners and providing the due diligence information/ documentation, a loan was approved based on eligible incurred expenditure and budgeted expenditure, delivering much needed cash to continue their research and development to achieve their dream. Throughout the tax year, three draw-downs were approved and paid to Short of Funding Pty Ltd, ensuring continuity of R&D activities, maintaining equity levels and progressing without interruption to delivering the future.
David Tonkin – R&D Capital
As a director of TCF Services for over 20 years and more recently with R&D Capital Partners, David has led a team of consultants in the delivery of various government industry assistance programs since 2000.
David for TCF Services, leverages his extensive manufacturing process knowledge to facilitate compliant grant applications for a broad range of businesses undertaking research and development activities and through R&D Capital guides and facilitates suitable entities through their debt funding journey.
Call David Tonkin on 0411304445 or email firstname.lastname@example.org