R&D position
The company and its advisers should have a credible view of entity eligibility, activities, expenditure and expected registration/tax-return timing.
R&D funding guide
Understand the gap between R&D expenditure and the tax-return cycle.
Australian companies can incur substantial R&D costs before completing the registration and tax-return process. SME Capital Partners is developing commercial credit that may bring forward some capital for suitable companies.
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.
Credit position
The anticipated R&D benefit is only one part of the assessment; revenue, cash flow, liabilities, security and repayment capacity also matter.
Evidence quality
Contemporaneous R&D and expenditure records are important both for the company’s program obligations and for a lender assessing the expected position.
How the R&DTI process fits together
The Australian Government describes the R&DTI as a self-assessment program. Companies must assess eligibility, conduct and document activities, register eligible activities and then claim the tax offset through the company tax return. See the official R&DTI overview.
Where commercial funding may fit
A commercial facility may be assessed before the relevant company tax return is lodged or before an anticipated tax benefit is received. The lender is not making an R&DTI eligibility determination and the borrower remains responsible for the facility under its final documents.
What changes the amount available
Potential facility size can depend on the expected R&D position, quality of records, company financials, liabilities, security, timing and the lender’s view of downside risk if the anticipated benefit is delayed or lower than expected.
Work with appropriate advisers
The company should continue to work with its accountant, registered tax agent and R&D adviser. SME Capital Partners’ role is commercial credit assessment, not replacing the company’s tax or R&D compliance advice.
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.
Questions
Common questions.
Does R&D registration guarantee funding?
No. Registration does not guarantee R&DTI eligibility and commercial funding is independently subject to credit assessment.
Can funding be considered before the tax return?
That is the intended product design for suitable companies, subject to evidence, credit approval and final terms.
Does SME Capital Partners prepare the R&D claim?
No. The company remains responsible for its R&D self-assessment and tax return and should use appropriately qualified advisers.