R&D Tax Credits and Drawdown Loans

Drawdown loans can be used to accelerate your R&D tax credits claims.

Founder Shoayb Patel RDvault


10 Jan 2020

RDvault | Drawdown Loans | R&D Tax Credits

R&D tax credits are a lifesaver for many startups, as the money invested in new innovation can contribute towards payroll, rent, or maybe even an IT upgrade.

Regardless of the size of their claims, or how it’s going to be spent, companies are always eager to get their R&D tax credit claims back into their bank as quickly as possible—and why wouldn’t they be?

The good news is there is a way to accelerate R&D tax credit claims in the form of a drawdown loan facility.

How a drawdown loan facility works

Let’s look at an example.

Company A has a March year-end. At the end of each year, the company makes an R&D tax credits claim. In one particular year, Company A has a funding gap, but wants to buy a piece of high-tech lab equipment. However, due to their current cash flow this seems unlikely.

The good news is that, as long as the company is spending money on R&D qualifying activities, many lending providers are more than happy to entertain a loan facility.

Company A has already made a claim for the year ending 31 March 2022 and is intending to make a claim for the year ending 31 March 2023. As such, their R&D tax credits won’t likely arrive until May 2023 and they could do with the money right now to secure a good deal on a specialist piece of research equipment.

As Company A has a track record of making successful R&D tax credit claims, and is currently spending money that qualifies for R&D tax credits, all they need to do is quantify the amount of R&D tax credits they expect to get for the year ending 31 March 2023 and arrange a drawdown loan facility of up to 80 percent of the value of their forecasted claim.

The loan will be repaid once the company receives their R&D tax credits from HMRC.

Most set-up fees are between four and five percent of the overall value of the loan and charge a monthly interest rate of approximately one and a half percent. Loans can usually be arranged within a week.

Trusted by major R&D lending providers across the UK

RDvault works directly with ArchOver, Finstock Capital, and Rocking Horse. Our software can also help estimate the value of R&D claims quickly, and we’re recognised by all major R&D lending providers in the UK.We’ve already helped businesses secure millions of pounds of R&D tax credits drawdown loan facilities to date. Let’s chat about how we can help you today.


R&D Tax Advice




R&D tax claim

R&D tax credits