Getting a tax credit advance doesn’t rule out the finance options above – in fact, it helps you maximise your leverage even more when it’s part of your overall funding stack. It makes credit available to a lot of companies who struggle to qualify for other types of finance, for example:
- You don’t need to be generating revenue or pitching a profitable business case; you simply need to be spending in the right areas
- You can be making a loss
- You need to be eligible for tax credits
A tax credit advance can make up for the shortfalls of other slow, expensive and inconvenient forms of funding.
Adsum offers non-dilutive finance that companies can claim in a matter of clicks. The advance is secured against tax credits already earned, which essentially removes the repayment risk of taking out a loan. Here’s how an Adsum advance measures up.
With Adsum, we continually update and notify you of your entitlement, and you can utilise your funds whenever you need – putting you in the driver’s seat when it comes to your finances.
The benefits include more intelligence over your tax credit assets, financial certainty, a smoother balance sheet, and one less thing (HMRC being slow) to worry about.
You can find out how much you’re owed within a few clicks, by simply verifying your identity and linking your accounts.
We don’t line up hoops for you to jump through and we never make you search for information we can find out easily ourselves. Plus we handle the whole HMRC reclaim process from start to finish, which could save you up to 40 hours of admin per claim.
Unlike other forms of finance, you’ve already earned your tax credit payout – it’s just sitting in the queue at HMRC. Our proprietary software calculates how much is coming your way and we go and get it for you. That’s why we’re both happy and able to release your funding in as little as 24 hours.
When you get a traditional loan, there’s an inherent risk taken on by both the lender and the borrower. The lender will likely place stipulations on you, including what you can do with your businesses (whether you can take out other loans, or sell certain assets). That’s not ideal if you’re a fast-moving, growth-hungry company that needs financial agility. You’ll also have to worry about paying the loan back.
Like a traditional loan, Adsum’s advances come with a small monthly processing fee and an agreed repayment structure. The difference is that your repayment is already guaranteed through your earnings validation. We take repayment directly from HMRC, so there are no future charges coming off your balance sheet either.