Why growth-phase companies use R&D Financing via CharterNet and Radium Capital

Key Points:

• Finance your R&D with a cash advance, secured against your future R&D Tax Incentive refund
• R&D Financing enables you to access non-dilutive capital to maintain a consistent R&D program for ongoing innovation
• CharterNet has partnered with Radium Capital to enable access to capital equal to up to 80% of your YTD R&D tax refund with nothing to pay until your refund is paid following year-end

For businesses around the world, COVID-19 has made two things truer than ever.

1. Cash Flow is King. Mismanage cash right now and it will hurt far more than during unstable economic circumstances we’ve had previously
2. Innovative companies will emerge the strongest. The pandemic’s impact on everything from supply chains to keeping customers safe has meant every business around the world is currently innovating. Those who will outperform their competition will be those that not only ‘innovate’, but innovate quickly

Riding the front of the innovation wave takes vision and resolve. But it also takes money.

For many CEOs right now, investing in R&D is a balancing act.

There is the need to double-down on research & development activities to out-innovate the competition, while at the same time, maintain a healthy balance sheet to combat any forthcoming challenges that may arise during these uncertain times.

Fortunately, pursuing R&D activities does not have to come at the expense of maintaining a strong “daily” balance sheet.

One option is to finance R&D activities by accessing the majority of your RDTI refund (as estimated in your R&D Tax Incentive [RDTI] submission) in advance – often up to 18 months earlier than the refund from the ATO. In other words, it is a way to bring forward your R&D Tax Incentive refund so that you can access and reinvest your own money sooner.

CharterNet and Radium Capital have partnered to offer clients a simple, fast, and secure way to provide additional cash flow for your business in advance of your expected R&D Tax Incentive refund. With a Radium Advance you can choose a one-off burst of capital, or access your refund on a more frequent basis using Radium’s Periodic Advance model. When you advance your tax refund every quarter you can trigger additional refunds, allowing you to either bring forward or boost your R&D expenditure.

R&D Financing is a clever and important part of CharterNet’s R&D client’s capital and cash flow mix. It’s a smarter way of accessing capital, particularly in more capital-restricted operating environments and without needing to raise dilutionary capital.

Quantify Chief Finance Officer Julian Hocking says “We’re planning to keep using Radium Quarterly Advances as part of our capital management strategy, as these have significantly benefited our business in the past.

How much could you access?

Use the calculator below to estimate the capital you could access through a Radium Advance.

Start Financing your R&D with Radium Capital Today

Don’t let a lack of capital be a barrier to your innovation and growth

A Radium Advance allows you to advance up to 80% of your estimated R&D Tax Incentive, with no upfront fees and a fixed interest rate. Secured against your future R&D Tax Incentive refund, it’s a smart, strategic way to access capital throughout the year, and can reduce the need for dilutionary equity.

For more information about Radium Capital and Radium Advances, access the Fact Sheet here, or get in touch with your CharterNet advisor to discuss how you could use a Radium Advance to improve the capital or cash flow of your business.

To download a detailed case study about how Linecrest created a high-tech mining revolution, yielding significant socio-economic and environmental benefits, click here.

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