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Post by pmjenkins on Mar 12, 2019 18:20:38 GMT
Silly question but I haven't found an explicit answer...
If HMRC reject the R&D claim what would happen to the investors' money? 100% loss or would AO chase the borrower?
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Post by timarchover on Mar 14, 2019 11:47:13 GMT
Hi pmjenkins, ArchOver's RDA service is the only unsecured offering on the Platform. ArchOver ensure that the borrowing company have successfully submitted two previous claims, as well as retaining professional advisers to help in the preparation of this R&D tax credit claim. If HMRC were to reject the R&D claim then the outstanding loan amount would be due payable by the company, and as per the terms of the contract, ArchOver would expect the business to pay any outstanding payments.
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Post by pmjenkins on Mar 14, 2019 13:35:06 GMT
If HMRC were to reject the R&D claim then the outstanding loan amount would be due payable by the company, and as per the terms of the contract, ArchOver would expect the business to pay any outstanding payments.
Thanks for clarifying that.
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liso
Member of DD Central
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Post by liso on Jul 15, 2019 11:24:58 GMT
HMRC pay the funds to the professional firm who made the claim on behalf of their client. The funds are then transferred to the Controlled Account with ArchOver.The loan details for uM**** R&D loan currently open for investment states " controlled account not applicable". Are you able to explain why not? For me, it seems a risk too far. hugoarchover
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Post by dharm999 on Jul 15, 2019 12:34:00 GMT
I don't invest in their R&D loans, the balance of risk versus return is not worth it, imo. If the claim gets turned down by HMRC, then, given the nature of the companies, where are they going to find the money from to repay the R&D loan? That doesn't seem to be made very clear, unless I have missed something in the proposal paperwork?
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Post by Deleted on Jul 15, 2019 16:05:48 GMT
Hi liso, uM**** have already filed their CT600 to HMRC applying for their tax credit, meaning that were we to change the bank details associated with the claim, this would likely stall the process, which is not in the interest of either our Lenders or the Borrower. We are however awaiting receipt of a letter of economic interest from the Borrower reasserting the fact that they have no interest in using the funds from the HMRC claim other than to repay the ArchOver loan. We will not draw down the loan without this documentation. Hi dharm999, There is of course the chance that HMRC will reject the claim, however we negate this factor by enforcing the criteria that prospective borrowers must have a successful history of claiming the HMRC tax credit going back at least 2 years. Furthermore the loan is repaid using the received credit; The RDA acts as a bridge loan until the tax credit is received. Please let me know if you have any questions. Kind regards, Charlie
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