Monthly burn
Separate recurring operating burn from one-off R&D project costs and identify when cash pressure is expected to peak.
R&D cash flow
R&D growth can be cash-intensive even when the company has a valuable tax position.
R&D teams often pay engineers, developers, scientists, contractors and suppliers well before a tax benefit is realised. A funding plan should map this operating cycle rather than focusing only on the anticipated claim.
What matters
Start with the commercial reality.
Funding should address a defined business need and sit within a credible plan for the company after the facility is advanced.
R&D timing
Map expenditure, registration, tax-return preparation and expected tax outcomes on one timeline.
Funding runway
Model what happens if technical milestones or the tax cycle take longer than expected.
Start with a monthly cash-flow forecast
business.gov.au describes a cash-flow forecast as an estimate of future sales and costs that helps identify shortages and surpluses. Use a month-by-month forecast for payroll, contractors, cloud/technical costs, prototypes, customer receipts and tax payments.
Separate committed and discretionary spend
Identify expenditure already contractually committed, expenditure needed to preserve the core team and optional projects that can be delayed if the downside case occurs.
Model the tax outcome as uncertain
Use scenarios for timing and amount rather than assuming the anticipated R&D benefit arrives on one exact date. The facility should remain manageable under a slower outcome.
Connect funding to commercial milestones
Where possible, link additional capital to technical or commercial milestones such as prototype completion, release, customer contract, production readiness or revenue conversion.
Official sources & further reading
General information only. This page does not constitute legal, tax, financial or credit advice. SME Capital Partners is in pre-launch and is not currently offering or approving credit through this website.