Buzz Capital receives record number of R&D loan enquiries.

Now the festivities are behind us Buzz has been reflecting on the past year and over the course of 2022 we saw a record number of R&D loan enquiries come through. We have been delighted to help innovative businesses in all different sectors and a noteworthy achievement was, over just a few days in the run up to Christmas, we advanced funds in excess of £1,000,000, to multiple businesses, a brilliant way to end the year.

Alena Walker, Business Operations Manager at Buzz states: ”In a climate that has in recent years been so uncertain for many, it is great to be in a position to help other businesses grow by giving them the support they need now, rather than later”

Now looking ahead, as a company you may already be turning your attention to your 2023 cashflow and exploring fundraising options. With the help of Buzz, you may be able to raise capital now secured against your R&D tax credit, by using your HMRC receivable as collateral.

Traditionally, loss making companies have been able to surrender losses for a cash rebate of 14.5%. However, from 01 April 2013, this will be reduced to 10%, which is a significant change from the existing rules. Notwithstanding the changes, we can look to lend up to 80% of this HMRC receivable, subject to a minimum of a £50k advance, giving your company the cash, it needs now rather than waiting for your claim to be processed by HMRC, which might take a number of months.

Also of note is the SME enhancement rate which is falling from 130% to 86%.

As a result of the abovementioned changes your company may be anticipating bringing in as much R&D spend before the rate changes so that it can capture the older and higher incentives as much as possible. If your year-end is not 31st March you will need to do a split period calculation for R&D costs to correctly apply the rates of relief.

We are able to look at the position prior to the end of your accounting period and before all qualifying R&D expenditure has crystalised if necessary.

If this is applicable to you and you would like to have a call, please let us know your availability to do so and we can discuss your options.

In the meantime, the Buzz Team would like to wish you all a Happy New Year, from us to you, we hope you achieve all your business goals this year.