Introducing our R&D Advance and Line of Credit Facility

This month, we’re excited to report that we have crossed the line of $100M in lending to tech companies in just 4.5 years.

We are proud to have supported over 250 companies since launch, with an average loan size of nearly $400,000 to businesses generating $2 million to $20 million in annual revenue.

Its a big milestone and we are celebrating with the launch of two new loan products:

• R&D Advance, and a

• Line of Credit Facility 

Read on the see the details of these products and if you think they meet your needs or a company you support, get in touch! 

We have been testing in the background and have some great early feedback. 

Our big news was covered by Capital Brief on Friday.

There’s a quote from one of our first Line of Credit loans. "We have a long, positive working capital cycle due to our supply chain," said Michael Fox, chief executive of Fable. "After searching globally, Tractor's new line of credit was the best solution we found—flexible, founder-friendly, and most importantly, built by people who really understand our business."

We go deep to understand our customers business so that we can offer the best suited option for them. Usually that means sophisticated financial analysis and conversations with the founders to understand where the business is today and where its going next. 

In this case it included a mushroom foraging excursion in the Victorian Macedon Ranges. 

Tractor Line of Credit (LoC) Facility

You asked, we built it.

After loads of requests, we’ve finally launched our Line of Credit – and it’s bloody exciting.

Our new Line of Credit is designed for businesses facing short-term working capital gaps, like when you need to pay suppliers faster than your customers pay you.

It’s perfect for bridging timing differences between payables and receivables, or when you have a long cash conversion cycle, or giving you the capital you need to work through a cashflow crunch.

This one’s for businesses who want a flexible funding option without locking into a lump sum loan.

Why LoC and why now?

We are bringing this product to market now as a response to many conversations we have been having with founders. In the current uncertain macro economic and global political environment, savvy tech founders are shifting from aggressive expansion to sustainable cash flow management.  

This working capital product addresses acute pain points for most founders who are balancing sustainable growth whilst maintaining and extending runway. Slower decision making and long supply chains especially for hardware and e-commerce companies need affordable capital and the assurance they can draw additional funds as needed.  

A quick taste:

- Limit is based on your working capital requirements (up to a maximum of $1.5M)

-There's a minimum draw of at least 25% of the total limit 

- You can draw down on the facility once a month 

- You can make repayments any time and of any size (as long at the minimum draw is maintained

 - Only pay interest on what you use

 - Small line fee on the rest, so your funds are always ready

 Keen to see what it could look like for your business? 

Get in touch with our Capital Strategy team via our website https://www.tractorventures.com/

Let us know;

How much you want,

When you want it, and 

Why you want it.

And we'll go ahead and run an assessment! We'll come back to you in ~5-days with an outcome. 

Tractor R&D Advance

We’ve also just launched a new R&D Loan that could unlock that cash before it hits your account.

Perfect if you’re keen to put that money to work now.

Here’s the quick rundown on our NEW R&D Loan: Purpose: If you are expecting a R&D Refund and would love to put that cash to use before you receive the refund, this loan is for you.

Funding amounts: $100k to $1m, can loan up to 80% of net refund (minimum $100k on first loan and minimum $50k for subsequent lends in any given R&D year).

Loan term: The loan term runs until your R&D tax refund is returned 

If you’ve got a R&D refund coming, why wait?

Get in touch with our Capital Strategy team via our website https://www.tractorventures.com/