ArchOver sees substantial interest in ‘Advances’ product

ArchOver has reported strong interest in its ‘Advances’ product, which offers unsecured loans to businesses backed by research and development (R&D) tax claims or government grant receipts.

The peer-to-peer business lender said that the profile for lending against HMRC R&D tax credits remains relatively stable, even in these current times.

“HMRC continues to process and pay R&D tax credits within its target timeframe, with 95 per cent of claims being paid within 28 days of submission,” ArchOver said.

“Government grants continue to operate under the terms of the awards.

“The government continues to support these schemes and views them as essential to stimulating and supporting innovation from UK small- and medium-sized enterprises (SMEs).”

To date, ArchOver has facilitated 30 ‘Advances’ totalling £6,565,000 for an average term of seven months, with investors earning an average annual rate of return of 10 per cent. A total of £3,780,000 made up of 19 loans has already been funded and repaid to lenders, ArchOver said.

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An update from the platform said the majority of the portfolio has taken measures to save costs, using government schemes such as putting workers on furlough and HMRC payment deferral as well as trying to scale back variable costs on an ongoing basis.

“Where businesses face more immediate threats, we are working hard to assist, from supporting on coronavirus business interruption loans and introductions to trusted business advisers and financial consultants through to loan capital repayment extensions when appropriate,” the update said.

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