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GRANT AND R&D TAX INCENTIVE FINANCE

How does R&D Tax Incentive Finance work?

 

R&D Tax Incentive Finance involves providing a loan advance against future receipts under the Federal Government's R&D Tax Incentive Scheme, in some cases up to 12 months prior to the anticipated receipt where financing is provided in September of a given tax year. 

How does Grant Finance work?

For companies which have received a grant from a state, federal or other qualifying authority, Grant Finance allows corporate borrowers to obtain loan advances secured against future receipts of grant payments which are generally paid in quarterly installments over 3-5 year timeframes. 

What are the benefits of Grant and R&D Tax Incentive Finance?

Broadly speaking, some of the benefits associated with Grant R&D Tax Incentive Finance are that:

 

  1. Relative to equity, debt is a cheaper, non-dilutive and far more flexible form of capital.

  2. It can be drawn as needed and repaid at any time.

  3. It can be put in place very expediently (PSF has completed R&D Tax Incentive Finance Facilities within one week of initial consultation, however, our typical lead time is two weeks).

  4. Documentation is on simple terms which are not contingent on agreeing an enterprise valuation or shareholder governance issues.

  5. The interest is tax deductible.

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