Annually, the UK government offers more than £118 billion in grants. Companies can access their future grant payments through Capti’s Grant Advance program. We provide businesses with funding that helps them meet grant milestones, maintain project timelines, and demonstrate investment, without requiring the sale of equity in the business. The grant system in the UK is highly regarded globally. However, some businesses encounter cash flow problems during the early stages of their projects as grants are paid retrospectively. To address this issue, companies that secure government grant funding can opt for grant advance funding. This method, also known as grant-based funding, allows businesses to obtain the necessary capital months in advance. As a result, they can start their projects, meet grant milestones, maintain equity, and stay on track with their schedules.
What is grant advance funding?
Grant Advance funding refers to a financial arrangement where companies that participate in government grant programs can access a portion of their future grant capital in advance. In other words, it’s a loan to get cracking on your R&D project! It allows businesses to receive a portion of the grant funds before completing the milestones or project requirements outlined in the grant agreement. This funding option helps companies maintain cash flow, meet financial obligations, and progress with their projects without waiting for the complete disbursement of the grant funds. Most government grants are eligible including the Smart Innovate Grant from Innovate UK.
How is this possible?
Through Swoop Funding! Capti’s partner invests in game-changing companies throughout the world. For our customers, they strive to make non-dilutive funding as simple, quick, frictionless, and personalized as possible. There are no personal or director guarantees, and the terms are Founder-friendly. Startups and small businesses should have access to capital in a flexible and timely manner. As a result of our unique funding solutions, we enable our customers to access their R&D tax incentives, future revenues, and government grants much earlier and accelerate their growth. We work closely with some of the most reputable advisors, investors, and accountants to offer our customers a wide range of resources, perks, and seamless funding options.
R&D Tax Credit Loans
HMRC R&D Tax Credits follow the same principles. Historically, companies have had to wait until after their financial year end to access their future R&D tax credits. Until now. With Swoop Funding R&D Tax Credit Loans, companies can receive their refund 6 months in advance of HMRC.
What are the advantages of grant advance funding?
Grant Advance funding offers several advantages to companies participating in government grant programs. Here are some key benefits:
Improved cash flow: Grant Advance funding provides companies with access to a portion of their future grant capital in advance, often up to 80% of the total grant you’ve won. This helps improve their cash flow by injecting funds into their business earlier than waiting for the complete disbursement of the grant, essentially accelerating timelines.
Timely project execution: With Grant Advance funding, businesses can maintain (or beat!) project timelines and complete grant milestones without delays. The availability of funds in advance ensures that necessary resources and activities can be carried out promptly, enabling efficient project execution.
Equity retention: By accessing grant capital in advance, companies can retain their equity and ownership in the business. They don’t have to rely on other funding sources or give up a significant portion of their ownership through equity dilution should they need to take on investment purely to provide cash.
Financial stability: Grant Advance funding provides financial stability to businesses by bridging the gap between project expenses and the final grant disbursement. This stability allows companies to meet their financial obligations, pay suppliers, and cover operational costs without undue strain.
Strategic planning: By receiving grant funds in advance, companies can plan and allocate resources more effectively. They can make strategic decisions regarding investment, hiring, and project expansion, knowing that a portion of the grant funds is already available. All of this ultimately leading to a stronger company all round.
Overall, Grant Advance funding offers greater financial flexibility, facilitates timely project execution, and supports the growth and stability of businesses participating in government business grant programs.