P2P lender ArchOver launches new product

By Ryan Weeks on Tuesday 17 April 2018

Editor's PickAlternative Lending

The platform continues to innovate with its new research and development advance.

Secured and insured peer-to-peer platform ArchOver is rolling out a new product to help small businesses fund their R&D. SMEs can now apply for the Research & Development Advance (RDA) to bridge funding gaps during time spent waiting for R&D tax claims to be repaid.

ArchOver claims to be the first P2P firm to offer advances upwards of £100,000 within this niche. Borrowers will need to demonstrate two years’ of successful claims in order to raise funding against their pending R&D tax credits. The minimum loan size will be £250,000, with up to 70 per cent of the estimated value of an R&D claim advanced across a six-month term.

“Investment in research and development is crucial not only to individual businesses, but to the wider economy as well,” said Angus Dent, CEO of ArchOver. “While the government deserves praise for unlocking cash for R&D, the long wait for reimbursement puts this funding out of reach for many of the businesses that stand to benefit most.”

ArchOver began in 2014 by offering P2P loans against businesses’ accounts receivables, but over the years has launched a number of new product types.

The company points out that just 1.67 per cent of national income is currently spent on R&D, compared to an average of over 2 per cent across the EU. Under the current government system, firms can claim cash repayments of up to 33 per cent of R&D expenditure, but these payments can take up to 6 months to come through from HMRC.

The new loan types will be open the platform’s individual investors and will carry a target rate of 10 per cent per annum. ArchOver was granted full authorisation by the FCA in May 2017, paving the way for the launch of its Innovative Finance ISA, which it expects to arrive this year.


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