During this period of rising energy costs, an R&D tax credit claim or a loan can generate the cash flow you need to operate at full capacity. Read our latest article to find out how.
Around 15 million households saw their energy bills increase by 12% in October. The following review is in February and will come into effect in April, and many industry predictions suggest gas prices could go up by as much as 50%.
It’s not just households and consumers who will be hit hard; soaring energy bills are also hitting businesses. Corporate energy costs are rising, and the energy price cap doesn’t apply to small businesses.
According to a poll by NatWest Tyl, who interviewed over 500 SMEs, around 65% of SMEs spend up to one-fifth of their overall business expenses on energy, while 8% spend as much as 35-50%. And almost 70% of small and medium businesses believe that energy expenditures negatively influence their progress.
While this is a troubling situation, an R&D claim or an advance could be a great help in alleviating any concerns you have when it comes to your expenses on energy.
R&D claims can offset rising energy bills
Businesses that claim R&D tax credits are in an excellent position to deal with unforeseen changes like the steep rise in energy costs. In 2020, the average claim size for small and medium-sized businesses was £57,330, up 7% from 2019, and this average will continue to rise year-on-year as more companies invest in R&D.
During times of unforeseen change, whether that’s the pandemic or rising energy bills, a cash injection of £57,330 gives you the power to adapt and plan. As an SME, you can cover your energy costs for at least two years and still have leftover funds to grow and improve your business.
If you’re concerned about rising energy prices and think you might qualify for R&D tax credits, try our eligibility assessment and find out once and for all.
Need funds now to cover unforeseen costs?
Alternatively, if you are a company that needs to invest in R&D throughout the year to fulfil your business objectives, inflated energy prices have the potential to put you under real pressure.
In this case, waiting for HMRC payment may not be your best option. It can sometimes take up to six months to receive your credits. Instead, R&D advance funding allows you access up to 80% of your future credits within days.
You have two choices: you can access your funds anytime before the end of the year (up to six months) or immediately after submitting your claim.
It’s a simple three-step process:
- We get to know your business and advise which lending partners best suits your needs.
- We run our eligibility and due diligence process ahead of an offered loan.
- You receive up to 80% of your credit ahead of your year-end or just weeks after submitting your claim.
At EmpowerRD, our fastest claimant completed their claim and received their funds in 6 days and 2 hours. Read how we helped Voyage Control through a difficult time over Covid, allowing them to continue their R&D efforts without delay.
If your business is feeling the pressure of rising energy bills and might require R&D advance funding, get in touch, and we’ll be happy to talk you through your options.
Alternatively, read our guide on R&D advance funding to learn more.