Repayable finance for late-stage innovation
Innovation Loans: £100k-£1m to take a proven technology to market
Award size
£100k-£1m, at a fixed interest rate below commercial market rates
Duration
Up to 3 years development, repayment over a further period
Timing
Periodic competition rounds
Who it's for: SMEs with late-stage, close-to-market innovation and the ability to service a loan
When a loan beats a grant
Innovation Loans suit companies whose technology is largely de-risked and need capital to reach market rather than to answer a research question. The application still has to prove genuine innovation, but the financial due diligence is more rigorous than for a grant.
Financial due diligence
Innovate UK assesses your ability to service and repay the loan alongside the technical case. We help build a credible financial model and prepare the company for the due diligence stage that follows a successful first-stage application.
Two-stage process
Innovation Loans run a two-stage process: a shorter application followed, if successful, by a detailed due diligence and negotiation stage. We support you through both.
What reviewers focus on
- Is the innovation significant and the risk still real?
- Can the business service and repay the loan?
- Is the route to market and revenue credible?
- Does management have the capability to deliver the plan?
Where applications lose marks
- Treating the loan application like a grant, without financial rigour
- Overly optimistic revenue forecasts that don't survive due diligence
- Applying for a loan when the technology is still at feasibility stage
- Weak management accounts or cash flow forecasting
Frequently asked questions
How much can an Innovation Loan provide?
Innovation Loans typically range from £100,000 to £1,000,000, at a fixed interest rate below standard commercial lending rates.
Do I have to repay an Innovation Loan?
Yes. Unlike a grant, Innovation Loans are repayable finance, drawn down against project milestones and repaid over an agreed term after the development period.
What stage of company suits an Innovation Loan?
Companies with a technology that is largely proven and needs capital for late-stage development, scale-up or market entry, rather than early feasibility research.
Considering an Innovation Loan?
Book a free consultation and we'll help you decide whether a loan or a grant fits your stage of development.