Have you heard about the innovation rewards that are available to the manufacturing industry? To be honest, I’m not sure this type of funding is of general knowledge to many industries. I’ve certainly not heard about it until more recently.
New Product Development Investment
Over the last half of the year or so I have been working with a client who is in the throes of developing a brand new product for the health & fitness market.
As is typical with new product development projects, it requires plenty of time and financial investment, prototypes, as well as marketing and strategic planning, to ensure the product is ready for its market (and of course that the market is ready for the new product!).
I have been researching all areas of funding & finance that could help boost the business in their development commitment and maximise the research & development opportunities. During my research, I came across the Research & Development Tax Credits, courtesy of the hugely helpful Julie Skevington of Sincero Limited, an independent advisor on exploring finance for your business.
Julie highlighted that this option could be a perfect fit for my client. It can be submitted to cover elements such as resource input, waste, prototype attempts, and design & development resource providing we could prove that the product due for launch would bring an advantage to the marketplace.
Government Backed Resource
This was a financial resource that I had never come across before & one that I think many are unaware of, despite it having been launched to the SME sector in the year 2000 (& subsequently to larger business sectors). The Government at the time created a financial resource, backed by them, to offer innovation rewards to any business within the areas of science or technology. Looking at the manufacturing industry, this, therefore, would probably apply to any new product development initiatives or product improvements across the board, opening the gates to at least eligibility to claim if not guaranteed success.
According to a recent article by The Manufacturer, the Office for National Statistics publishes an annual review of the Research & Development Tax Relief Scheme every September. The latest report issued a few months ago highlighted that over 9,600 claims were made by SME Manufacturers under the SME Scheme (business employs less than 500 employees, turnover is of less than €100m or a balance sheet value of less than €86m). These claims were worth around a total of £410m, averaging out at £42,000 per claim. That’s some significant financial payback & innovation reward for growing the industry and market sectors.
Plus the claim for the monies can be submitted retrospectively if required.
Needing Upfront or Retrospective Business Finance Support?
So if you’re looking at diversification or improvements within your manufactured product offer or any other industry for that matter, don’t forget to consider this as an option to boost your innovation and growth strategy.
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