Adsum launches monthly tax credit facility for pharmaceutical companies

 

 
Adsum, the UK's only fintech tax credit specialist, launches a new product to pharmaceutical businesses in a tax-refund position - offering immediate, monthly access to end-of-year tax credits and VAT refunds while avoiding HMRC delays. 

Today, Adsum offers a new product for UK businesses involved in pharmaceutical Research and Development (R&D) that want to improve the resilience of their cash flow. Organisations here, thanks to VAT refunds and end-of-year tax credits, can now access these funds due from HMRC in as little as 24 hours – paid directly and monthly.

Thanks to the UK's generous tax incentives, businesses can get 25% of their qualifying expenditure as cash or tax reductions. Still, it often takes days for companies to submit and months for HMRC to calculate and provide. Similarly, VAT refunds, particularly after a company makes a sizable investment, can be a vital source of funds that companies can't afford to wait for.

This will provide an invaluable opportunity to improve cash flow resilience for scaling businesses navigating a recession, rising inflation, and high street lenders ever reducing their lending to smaller enterprises. Furthermore, Adsum's technology quickly calculates the tax refunds due – bypassing a HMRC plagued with delays - and providing consistent, dependable financing. 

Freddie Digby, CCO of Adsum, comments: "Getting a loan is often like pulling teeth - but if successful, it lets you budget confidently when you have recurring expenses. Here at Adsum, our mission is to make this process easier, faster, and more reliable for growth-hungry businesses. We're thrilled to introduce a better alternative to the traditional lump sum tax credit allowance — our rolling monthly tax credit facility.

"We know getting funded as a fast-growing but relatively new business is not easy. You need to be rich in time and collateral to go to the bank and secure a long-term loan. That's quite challenging, given that startups and scaleups may have neither. Our rolling tax credit facility is a simple solution: transforming taxes into an asset to then leverage finance against. 

"This is perfect for companies regularly in a VAT refund position and/or making qualifying R&D expenditure. Rather than setting up a new facility every time you need cash flow, you can get advances when required and have real-time information on how much funding is coming your way. 

"We never ask our customers questions when we can get the answers from publicly available sources of information," explains Freddie. "We think a lot about the customer journey, to take as much of the admin off our customer's shoulders as possible."