ArchOver 23 May 2019 07:03pm

Supporting SMEs with short-term loans

SPONSORED CONTENT: How do you support your clients’ growth goals? ArchOver does it by facilitating short-term loans (3 to 12 months) that advance up to 70% their clients’ Research & Development tax claims - with borrowing rates from as little as 1% per month, no personal guarantees, no equity dilution, no hidden fees, and no penalty for early repayment

Caption: Connecting high-growth SMEs with the cash they need to grow

Advances are available from the 7th month of your clients’ financial year to approximately 3 months from when the R&D claim will be paid. Your involvement in advising your client on the R&D claim is essential to ArchOver’s process.

ArchOver is a Peer-to-Peer business lending service, connecting businesses that need working capital with investors seeking favourable returns. Through their platform, lenders pledge to borrower projects, providing them with the money they need to achieve your goals.

Without the R&D advance loan from ArchOver, the CEO and founder of SeeQuestor, Henry Hyde-Thomson, admitted that they “would have been forced into a period of cost-cutting, which would have had a major impact on our growth trajectory”.

SeeQuestor is a crime-busting video analytics business that helps law enforcement analyse thousands of hours of video in just seconds. They went to ArchOver needing cash to push their business to the next stage – before taking revenue from customers. They reached out to their bank and were denied; the bank simply wasn’t interested in lending to pre-profit companies. In place of assets, buildings or receivables on the balance sheet, SeeQuestor had their hugely valuable intellectual property and resulting software, and an expected R&D tax claim of £550,000. This is where ArchOver came in.

Recognising that SeeQuestor had a strong business model underpinning their industry-leading technology and a solid track record of successful R&D tax credit claims, ArchOver facilitated a £400,000 loan based on the company’s expected tax receipt, enabling SeeQuestor to cover their running costs and strengthen their hand in negotiation with VC investors.

Commenting on the funding, Hyde-Thompson said that they “were in the middle of raising an equity round, and were turned away by our bank. Securing a loan against our R&D tax credit meant we could answer our immediate cashflow needs. This in turn gave us more time to present to potential investors and to secure further funding to fuel our ambitious plans for growth”.

The funding bridge was extremely useful in the six months until they received their payment from HMRC. It allowed them to close their equity round, which was vital in keeping the business investing and growing. They were able to continue their work, using the loan as working capital to fund salaries and development. Hyde-Thomson added: “Without ArchOver, we wouldn’t be on the path to profitability that we are today … Ethics is core to our business, and ArchOver is on the same page”.

ArchOver is all about quality. They carry out rigorous due diligence to ensure they fully understand their borrowers’ businesses, what they’re trying to achieve and the challenges they face. They take the time to get to know them.

ArchOver’s founders come from an SME background, so they know that every business is unique, and should be treated that way. They have a proven record not only of helping businesses secure funding, but also helping their borrowers when they meet challenges outside their control. They believe that British entrepreneurialism is worth fighting for – so if a business is still viable, they are willing to find the best way forward.

ArchOver has a range of loan types helpful to businesses at different stages in their journey and that lenders can pledge to, with interest rates ranging between 6% and 11% depending on the level of security. Lenders can also earn tax-free returns by using their annual IFISA allowance of £20,000 and/or by utilising their Investment Plan service – an automated portfolio that spreads lenders’ cash across multiple projects.

P2P offers the potential of better returns for borrowers and lenders alike. ArchOver delivers on that promise for British SMEs. If you need capital to help you grow, they help make it happen.

Can ArchOver support your clients by advancing their current R&D tax claim?

020 3021 8100

ArchOver is authorised and regulated by the Financial Conduct Authority 723755. Lender capital is at risk and interest payments are not guaranteed if the borrower defaults. Lending over the ArchOver platform is not covered by the Financial Services Compensation Scheme.