R&D tax credit funding Ireland and grant bridging

Some specialist lenders offer R&D tax credit finance, advancing part of an expected or filed claim and taking repayment when Revenue pays. They look at the quality of the claim, your adviser’s report, your tax position and when each instalment is due. Rates and terms vary, and if Revenue reduces the claim, your company still owes the advance.

Most grants are paid in arrears, so your company must fund the spending first. Options include cash reserves, a working capital loan, asset finance for equipment, or grant bridging finance from a specialist lender against the approved grant. Remember that grants exclude VAT, so plan for the VAT cash gap as well.

No. Local Enterprise Office grants, other than salary grants, are paid after the spending has been made and paid for and, for equipment, installed and inspected. Your company has to fund the full cost first, including VAT, which grants do not cover, and LEO asks for a current tax clearance certificate. LEO Kildare notes that you need bridging finance in place.

The rate rose to 35% for accounting periods with a corporation tax return due on or after 23 September 2027, which generally means periods ending on or after 31 December 2026; earlier periods stay at 30%. The credit is used against corporation tax, and any excess can be paid to the company in instalments. Claims must meet Revenue’s science or technology tests.

In three annual instalments. The first is the greater of €87,500 (or the full credit, if lower) and 50% of the credit; the second is three-fifths of the remaining balance; the third is the rest. The Finance (No. 2) Bill 2026 proposes raising the €87,500 floor to €105,000, which is not yet law. This wait is why some companies bring the cash forward.

Some lenders will advance against an approved Enterprise Ireland grant, because the offer letter shows the amount and conditions. They look at milestones, claim timing and whether your company can meet the conditions. A grant application that has not been approved is rarely enough. Enterprise Ireland pays after it reviews each claim.

Your company still owes the full advance and fees, even if the grant body pays less than expected or Revenue reduces the R&D claim after review. Grants can also be cut if their conditions are not met. Prepare claims carefully, keep records, take tax advice on R&D claims, and only borrow against amounts you are confident of receiving.

We do not apply for grants on your behalf: grants are applied for directly with Enterprise Ireland, your LEO or IDA Ireland. To fund the wait, a general working capital loan may sometimes help. Tell us what your company needs and we'll tell you honestly whether our panel can help, or where to apply instead.

Possibly. Start-ups registered as limited companies in Ireland can apply. Most lenders look for some trading history, so options may be fewer for a new company. New businesses can also speak to their Local Enterprise Office, which runs grants and supports for start-ups, and to Enterprise Ireland if they are a high-potential start-up. Microfinance Ireland also lends to small businesses that find it hard to borrow elsewhere.