Which funding for an R&D project

2 min read

Grants & reliefR&D-specific

Long lagsThe catch

Loan bridgesThe gap

The R&D funding landscape

Research and development attracts funding options ordinary projects do not: R&D grants, R&D tax relief and, for higher-risk ventures, equity. Each is attractive but comes with a lag — grants take months to award, tax relief arrives after you have spent and claimed, and equity is slow to raise and dilutive. Meanwhile, the R&D itself needs funding now. That is where borrowing bridges the gap. See grant vs loan.

Bridging with a short-term loan

Source	When it lands	Role
R&D grant	Months later, if awarded	Funds part of the project
R&D tax relief	After spend and claim	Recovers a share of costs
Equity	Slow, dilutive	For high-risk, capital-hungry R&D
Short-term loan	Days	Funds the work now; repaid as relief/grants arrive

A short-term loan lets the R&D proceed immediately, then can be repaid as tax relief or grant money comes through — turning a stop-start, funding-led project into a continuous one. Just ensure it is affordable on its own, not solely on the assumption relief will arrive.

Don't stake it all on future relief

R&D tax relief and grants can materially cut the net cost of innovation, but neither is guaranteed in amount or timing. Borrow on the basis that the company can service the loan from its own cash flow, treating any relief as a bonus that repays it faster — not as the sole repayment plan. Check the numbers with our affordability guide.

The Credicorp view

A short-term Credicorp business loan lets your R&D proceed now and be repaid as grants or tax relief arrive — funding continuity without dilution, lent to the company with no personal guarantee. Register to apply. Educational content, not financial or tax advice.

Frequently asked questions

How do I fund an R&D project before tax relief arrives?

A short-term loan bridges the gap: it funds the work now and can be repaid as R&D tax relief or grant money comes through months later. This keeps the project continuous rather than stop-start, provided the loan is affordable from the company's own cash flow, not solely on the assumption relief will land.

Should I wait for an R&D grant instead of borrowing?

Only if the project can wait. Grants take months and are not guaranteed, so waiting can stall the work. Many companies borrow to proceed now and pursue grants and tax relief in parallel to repay the borrowing or fund the next phase, capturing both the momentum and the relief.

Can I rely on R&D tax relief to repay a loan?

Treat it as a bonus, not the plan. Relief can materially cut the net cost, but its amount and timing are not certain. Borrow on the basis that the company can service the loan from cash flow, and use any relief that arrives to repay it faster rather than depending on it.