'Spend it and respend it again': Radium Capital hits $1 billion lending as R&D booms
Radium Capital has passed a $1 billion lending milestone by turning R&D tax incentives into a cashflow tool for companies.
Jeremy Loftus sums up how Radium Capital built a billion-dollar business by systematising what was once a cottage industry in just two sentences: "We're not R&D experts. We're experts in lending."
The Perth company has now surpassed $1 billion in advances to more than 1,000 companies since 2017, transforming the 18-month wait for R&D tax incentives into a monthly cash flow tool.
When Radium entered the market in 2017, lenders like Paddington Street and Mitchell Asset Management offered R&D advances as part of traditional lending packages. Radium stripped away everything else, focusing solely on making these advances "quicker and cheaper" — building relationships with specialist tax advisers, learning which claims succeed, and understanding exactly how long the government takes to pay.
The model has proven its worth. Between 60% and 70% of Radium's clients return, with some accessing advances monthly rather than annually. The company works with businesses ranging from startups to ASX-listed entities, with typical advances from $1 million to $5 million, though some reach into "the teens".
