Barclays offering $130,000 minimum loans to games developers

Barclays bank has begun offering tax credit loans as a source of funding for games developers.

According to GamesIndustry.biz, the bank has claimed to be the first of its kind to offer a loan like this to the games industry.

Any company registered in the UK that has been approved by the BFI can obtain the loan. The bank is said to lend a minimum of £100,000 ($131,880), offering 90 per cent of the total tax credit.

Those who are approved for the loan will have access to the money before its future tax credits from HMRC, meaning companies can claim funds sooner than normal.

"Vital cash flow"

"The government has introduced tax credits for producers to encourage them to create and publish their games in the UK, and our loan acts as an advance on these credits, helping with vital cash flow in the early stages of a game's development, " said Barclays business banking's relationship director for tech and media Gavin Smith.

To secure a loan, developers will need to inform the bank of its intended spendings. Barclays will also need a letter from the company's accountant to confirm the people responsible are capable of paying back the funds.

As of August 2019, $392 million has been paid out to developers as part of the video games tax relief scheme.