Marketing agency funding for digital, PR and creative agencies
The right funding for an agency depends on how it bills. Profitable agencies wanting to hire or buy tools usually use an…
Other sectors
Games studio funding: tax credits, investment and loans
How UK games studios combine grants, Video Games Expenditure Credit, publisher deals, investment and loans, and when a lender will advance against a claim.
“I highly recommend this company: excellent service all round.”
- Amount
- From £10,000 to £20 millionLarger amounts through secured, property and asset-based finance
- Security
- Secured or unsecuredOptions compared for your case
- Suitable businesses
- Sole traders to limited companiesPartnerships and LLPs too
- Lender panel
- Whole of marketLenders searched for you
In short
Supporting games studios at every stage.
Most UK games studios fund development from a mix of founder money, grants, publisher advances and equity, then add debt once revenue or a tax credit claim is in sight.
Video Games Expenditure Credit is often the largest non-dilutive source, and some specialist lenders advance against an expected claim. Lenders want BFI certification progress, a credible budget, a reliable claim preparer and, for ordinary loans, trading revenue from released titles or work-for-hire.
How much funding can a games studio get from the UK Games Fund?
Up to £250,000, depending on the track. In April 2026 the government announced a £30 million Games Growth Package, with £28.5 million of it going to the UK Games Fund across three tracks. The Entry Track offers grants of up to £20,000 to newly formed companies with strong growth potential, the Emergent Track up to £100,000 for prototyping new games, and the Expansion Track up to £250,000 to take games to completion and help studios scale. Grants are competitive and follow their own timetable, so studios tend to plan around them rather than depend on them, using founder money, publisher deals, a Video Games Expenditure Credit advance or a loan for the rest. We arrange the debt side once a studio has revenue, contracts or a credit claim to borrow against.
Can a games studio get a Start Up Loan?
Yes, if the founders meet the scheme's rules. The British Business Bank's Start Up Loans scheme accepts founders who live in the UK, are at least 18 and run a UK business that is new or has traded for no longer than five years. Every founder may borrow as much as £25,000, with interest fixed at 7.5% and repayment spread across a term of one to five years, subject to a ceiling of £100,000 for any single business. The loan is made to the founder personally, so they remain liable for it whatever happens to the studio, and it comes with mentoring support.
Track fit
The Entry Track is aimed at new companies with a limited record, so an established studio looks at the larger tracks.Grant terms
Check each track's rules on matched money and payment dates before building a budget around it.Personal liability
A Start Up Loan is borrowed by the founder, not the company.Full picture
Lenders want to know about every grant, credit claim and loan a studio is relying on.
GOV.UK has the Games Growth Package announcement, and Start Up Loans lists its eligibility rules. Our start up business loans page covers other routes for new businesses, and grants versus loans explains when each fits. Instant Quotes points a studio towards panel lenders that may suit it.
The operating cycle
Where finance fits into your games studio
Cash leaves the business at every stage before it comes back. Each stage below is a point where the right facility can carry the gap.
“The whole process was very smooth and was completed within a few days.”
- 01
Win work
Orders, contracts or customers secured.
- 02
Buy in
Stock, materials and equipment paid for up front.
Asset finance → - 03
Pay people
Wages and suppliers paid on time.
Working capital → - 04
Deliver
The work is done or the goods are sold.
- 05
Get paid
Customers pay, sometimes weeks later.
Invoice finance → - 06
Tax
VAT and Corporation Tax fall due.
HMRC loans → - 07
Invest
Growth, a new site or new equipment.
Business loans →
About games studio funding
Specialist knowledge. Better outcomes.
This page is for founders and finance leads of UK independent studios.
This page is for founders and finance leads of UK independent studios: start-ups building a first title, established indies with a back catalogue, and co-development or work-for-hire studios that build games for others. Smart Funding Solutions is a broker for the debt side of a studio's funding, not an investor or lender: once there is revenue or a claim to borrow against, we search lenders across the whole market for facilities from £10,000 to £20 million. This guide sits within our SME loans by sector section.
- Whole of market accessWhole-of-market search across our lender panel.
- Independent brokerSmart Funding Solutions is an independent broker, not a lender.
- Tailored to your caseYour case presented to lenders suited to it.
- Support from start to finishOur experts handle the process from start to finish.
Funding needs
Funding options for games studios
Choose the need, and we’ll show you how lenders usually structure it.
Funding needs
Can a games studio borrow to fund user acquisition for a live game?
Yes, once the game has a record of paid players earning back what they cost to acquire. Revenue based finance for games advances money for marketing and user acquisition and is repaid as a share of future store receipts, so repayments move with income. Lenders read cohort data rather than headline downloads, looking at cost per install, retention after one, seven and thirty days, average revenue per user and how many days a cohort takes to repay its acquisition cost. A premium title with one launch spike is harder to fund this way than a live service or mobile game with steady monthly payouts. Marketing spend is not core expenditure for Video Games Expenditure Credit, which covers designing, producing and testing a game, so it has to come from revenue, investment or finance. We arrange revenue based facilities and term loans for studios with live games.
How do lenders judge a game's payback period?
By comparing what it costs to acquire a player with what that player spends over time, after store fees and refunds. If cohorts recover their acquisition cost within a few months and keep earning afterwards, a lender can see how new marketing money turns into receipts. A long or uncertain payback, retention that falls after updates or reliance on a single ad network all reduce what a lender will advance. Studios that track cohorts by month and channel, and can show the same pattern holding over several months, give lenders the evidence they ask for.
Cohort reports
Monthly cohorts showing spend, installs and revenue to date.
Store payouts
Platform payout statements that match the revenue in the cohort data.
Channel mix
Which ad networks and creatives bring players in, and how much the game leans on one.
Content roadmap
The update plan that keeps existing players spending.
HMRC explains what qualifies in its guide to claiming Video Games Expenditure Credits. Our revenue based loans page explains repayments that follow income, and software company funding covers recurring revenue businesses. Instant Quotes checks which panel lenders back live games.
Grants, investment and publishers
01
Grants
The UK Games Fund supports early-stage developers with grants and support programmes, and Innovate UK competitions occasionally cover games technology. Some regional growth hubs fund creative and digital businesses. Grants keep your equity intact but are competitive and slow; our guide to grants versus loans explains when each fits.
02
Angel and venture investment
Angels invest earlier and smaller, often bringing industry contacts; investments that qualify for SEIS or EIS are more attractive to UK investors. Venture capital suits scalable live-service games or platform technology, and comes with due diligence, board influence and an expected exit.
03
Publisher deals
A publisher funding development in return for revenue share and some rights can take on marketing and distribution as well. Read the recoupment, IP ownership, sequel rights and milestone payment terms with a specialist lawyer: a missed milestone can stop payments mid-production.
04
Crowdfunding
Reward-based campaigns raise money from players and test demand, but backers expect regular updates and delivery of rewards. Equity crowdfunding is the alternative for studios willing to sell shares.
Budgeting before you raise
Every funder asks the same first question: how much, and for what. Build the budget against milestones (prototype, vertical slice, alpha, beta, early access, launch) and cover salaries or contractor fees, engine and tool licences, hardware and dev kits, art, audio, localisation, QA, platform certification, marketing and community management, plus running costs and a contingency, since schedules slip. A milestone budget lets you raise only what each stage needs and is also the basis for any tax credit claim.
Video Games Expenditure Credit
Video Games Expenditure Credit (VGEC) replaced Video Games Tax Relief for new games from 2024. A qualifying company can claim a credit on core expenditure on designing, producing and testing a game, provided the game passes the BFI cultural test for video games and the spending meets the UK expenditure rules. Claims are made through the company tax return, and HMRC's guidance on claiming Video Games Expenditure Credits sets out what qualifies and what to submit.
The credit is valuable but slow: it arrives after the accounting period ends, the return is filed and HMRC processes the claim. That delay is what tax credit lenders fill. A specialist lender advances a proportion of the expected credit, then is repaid directly from HMRC's payment. They typically want:
- An interim BFI certificate, or clear progress towards one
- A claim calculation prepared by an adviser with a games track record
- Management accounts that tie the qualifying spend to the budget
- Evidence that previous claims, if any, were paid without significant adjustment
R&D tax relief is separate and narrower. It covers genuine technological advances, such as new engine, networking or tooling technology, not creative content, and the same costs cannot be claimed under both regimes. Lenders that advance against R&D claims apply a similar test; for the wider picture of HMRC-related borrowing see our tax and HMRC loans page.
When a studio can borrow
Lenders rarely fund pre-revenue development from ordinary loans, because there is nothing yet to repay from. Debt becomes realistic in these situations:
- Released titles earning: platform payouts arrive in arrears on each store's schedule, and revenue-based finance can advance against that income stream, repaid as a share of future receipts.
- Work-for-hire and co-development: invoices to other studios or publishers can support invoice finance if milestones are signed off before invoicing.
- Trading history and profit: an unsecured business loan for hiring, a move or new hardware, usually with a director's guarantee.
- New studios: founders may qualify for start-up business loans, assessed largely on them personally.
Risks to weigh
Borrowing against hoped-for sales is the classic studio mistake: launches slip and sales curves are steep. A tax credit advance carries its own risk, because if HMRC reduces or delays the claim the shortfall still has to be repaid. Keep borrowing to amounts your existing income or a well-evidenced claim can cover. If the plan only works with a hit, equity or a publisher is the more honest fit.
Underwriting
What lenders and investors check
01
Revenue track record
lifetime sales of existing titles, and how quickly they decline after launch.
02
Platform and publisher concentration
reliance on one storefront or one publisher contract.
03
Team
shipped titles, and whether key developers are tied in.
04
Budget control
past projects delivered against budget and schedule.
05
Tax credit quality
who prepares claims and how HMRC has treated them.
06
IP ownership
whether the studio owns its games and engine, or a publisher does.
Underwriting
How lenders assess games studios: certification, credit timing and storefront payouts
Studios borrow mainly against tax credits and sales, so lenders spend their time on when the cash will actually arrive.
Our panel includes a lender that specialises in creative, software and games businesses. Studios with recurring software income can also see software company funding.
01
British certification first
A game must be certified as British under the BFI cultural test before Video Games Expenditure Credit can be claimed. Lenders advancing against a claim want certification in hand or well advanced; see the BFI cultural test for video games.
02
When the credit is paid
The credit is claimed through the company tax return, so it arrives after the accounting period closes and HMRC processes the claim. That gap is what credit advance lenders fund; see claiming Video Games Expenditure Credit.
03
Storefront and platform payouts
Digital storefronts pay monthly in arrears after taking their share, and consoles have their own payment cycles. Lenders read storefront reports alongside bank statements.
Checklist
Documents to gather
- Filed accounts and current management accounts
- Business bank statements and platform payout reports
- Development budget and milestone schedule for the current project
- BFI certification documents and the expenditure credit calculation
- Publisher, co-development or work-for-hire contracts
- A pitch deck or business plan, with wishlist, playtest or community data
How studios fund a game
| Source | Usual stage | Equity given? | Main trade-off |
|---|---|---|---|
| Founder money and bootstrapping | Concept and prototype | No | Short runway and personal exposure |
| Grants | Prototype to vertical slice | No | Competitive; often need match funding |
| Video Games Expenditure Credit | During and after development | No | Paid only after a claim; rules on qualifying spend |
| Publisher deal | Vertical slice onwards | Usually not, but rights may be shared | Recoupment and revenue share before royalties flow |
| Angels and venture capital | Seed to growth | Yes | Dilution, board influence, exit expectations |
| Crowdfunding | Pre-launch | Only equity crowdfunding | Public delivery commitments to backers |
| Debt | Revenue or claim in sight | No | Repayments due regardless of launch dates or sales |
For a fuller comparison of giving away shares versus borrowing, see our guide to debt versus equity funding.
How we help studios
- We look at your income streams, claims and the project you are funding.
- We identify whether a credit advance, revenue-based finance, invoice finance or a term loan fits.
- We approach suitable lenders on our panel and present the studio properly.
- We compare offers with you, including fees and any personal guarantee.
- We manage the application; the lender makes the final decision.
Any broker fee is disclosed separately before you proceed. Studios building software products alongside games may also find our page on software company funding useful, and those producing trailers or animation in-house can read media production finance.
Studios that also earn from services, licensing or recurring software income can compare the wider options in our guide to technology business loans.
Ready when you are
See what lenders could offer your business, in minutes
Tell us how much you need and what it is for. Instant Quotes shows which lenders on our panel fit your business, then a broker helps you choose the right option.
Prefer to talk it through? Call 01244 267694
FAQs
Questions clients ask
Can I borrow against a Video Games Expenditure Credit before the game is finished?
Some specialist lenders will advance against credit relating to an accounting period that has ended, even mid-development, provided the spend is evidenced and certification is progressing. Few will lend against spend that has not yet happened.
Does a publisher advance count as income for a loan application?
Lenders treat a publisher advance as funding for a specific project rather than free cash, and look at what happens if milestones are missed. Royalty income from released games carries more weight.
Can a games studio get an asset finance deal on hardware?
Yes, for workstations, servers, VR kit or motion capture equipment, although fast-depreciating computer hardware is usually financed over shorter terms. See business equipment financing.
Can a games studio with no released title get debt funding?
It is difficult, because lenders need something to repay from, such as revenue, a signed publisher deal or an expected tax credit claim. Before then, most games studio funding comes from founder money, grants, publishers and equity investors. Once a Video Games Expenditure Credit claim or contracted income is in sight, specialist lenders may consider advancing against it. Our guide to debt versus equity funding compares the trade-offs.
Do lenders need a personal guarantee for games studio funding?
Often, yes. Most lenders providing debt-based games studio funding ask directors for a personal guarantee, because a studio's main assets are intellectual property and people rather than property or machinery. Facilities secured against an expected tax credit claim or contracted revenue may still carry a guarantee. Check how much you are guaranteeing and when it could be called. Our page on personal guarantees explains the key points.
Can I get instant quotes for games studio funding?
Instant Quotes shows which lenders on our panel are likely to fit your studio, with no credit search. Debt for a studio is then sized on revenue, publisher contracts or a tax credit claim, so have those ready.
How much funding can a games studio get from the UK Games Fund?
Up to £250,000. The UK Games Fund's Entry Track offers up to £20,000 for new companies, the Emergent Track up to £100,000 for prototypes and the Expansion Track up to £250,000 to finish games and scale, from £28.5 million announced in April 2026. Smart Funding Solutions, a whole of market broker, arranges the loan side of a studio's funding.
Can a games studio get a Start Up Loan?
Yes, if the founders qualify. Founders of a UK business that is new or under five years old can each borrow as much as £25,000 through Start Up Loans, with interest fixed at 7.5% and a term of one to five years, up to £100,000 per business. The loan is personal to the founder.
Can a games studio borrow to fund user acquisition for a live game?
Yes, once paid players have a record of earning back their acquisition cost. Revenue based finance advances money for marketing and is repaid as a share of store receipts. Lenders look at cost per install, retention, revenue per user and payback days. Smart Funding Solutions, a whole of market broker, arranges funding for studios with live games.
How do lenders judge a game's payback period?
Lenders compare the cost of acquiring a player with what that player spends after store fees and refunds. Cohorts that recover their cost within a few months and keep earning support a larger advance, while long payback, falling retention or reliance on one ad network reduce it.
Keep exploring
All guidesRelated funding options
Video production finance for production companies and studios
Video and media production companies usually finance cameras, lenses, lighting and edit suites with asset finance, cover the…
Software company funding and loans for SaaS businesses
Lenders fund software firms on the strength of their revenue, not their assets. A profitable company with steady recurring…
How to open a nursery: registration, costs and funding
To open a day nursery in England you need premises with enough indoor and outdoor space for the EYFS requirements, a qualified…
How to open a padel club: site, planning, costs and funding
To open a padel club, test local demand, choose between an indoor unit and an outdoor site, secure planning consent and a lease…
How to open an indoor golf centre: site, planning, costs and funding
To open an indoor golf centre, test local demand, find a unit with enough ceiling height and space for your bays, check…
- DiscussTell us what the funding is for.
- Explore the marketWe search the whole market and compare offers.
- Compare offersWe explain the options clearly.
- Move forwardChoose the right facility for your business.
What our clients say
“Simon was fast, kept us updated at all stages and was a real pleasure to work with on our asset finance. I highly recommend this company: excellent service all round.”
“Spoke with Simon, who managed to get me the loan I needed promptly. The whole process was very smooth and was completed within a few days.”
“Getting a business loan can feel like a bit of a minefield, but everything was broken down for me in great detail. Will use again in the future!”
“Simon was a pleasure to deal with and helped us find a business loan that matched our growth goals and future expansion plans.”
“I couldn’t source funding for my business, but the team got in touch within an hour and had it sorted within 24 hours. Fantastic service, and I would definitely use them again.”
Why businesses choose Smart Funding Solutions
- Whole of market access
- Personal broker support
- No obligation discussion
- Any broker fee disclosed first
