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Adsum revolutionises alt-fi again, launches monthly tax-credit financing model - Best Business Review Site 2024

Adsum revolutionises alt-fi again, launches monthly tax-credit financing model

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Adsum, the UK’s only tax-credit forwarding-financer, launches a new product to help businesses in a tax-refund position, offering immediate, monthly access to end-of-year tax credits while avoiding HMRC delays.

Today, Adsum offers a new product to the UK’s rapidly scaling businesses that want to improve the resilience of their cash flow. Organisations in the creative sector, those involved in Research and Development activities, or businesses owed VAT refunds, can now access funds due from HMRC in as little as 24 hours – paid directly and monthly.

Freddie Digby

Freddie Digby

Thanks to the UK’s generous tax incentives for R&D, and work done in the TV, film, gaming, and other creative industries, businesses can get 25% of their qualifying expenditure as cash or tax reductions. This is an excellent incentive for enterprises or spending on these activities in these markets. 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 an 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 traditional loans — 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 start-ups and scale-ups may have neither. Our rolling tax credit advances are 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.”

Notes to Editors
Established in March 2020 in Hammersmith, London, Adsum is a fintech tax credit specialist providing a straightforward advance funding solution for all UK business tax receivables, including creative industry tax credits such as film, TV and gaming, as well as R&D tax credits and VAT refunds.

Adsum solves cash flow headaches by calculating the value of businesses’ tax receivables in real-time and advancing the cash when needed, up to a year ahead of when HMRC will pay out. As tax credit experts and an HMRC accredited tax agent, Adsum’s technology computes the value of companies’ tax credits and completes all tax compliance. This saves time, professional fees and futureproofs cash flow.

https://adsum-works.com/

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