Club management software platform LoveAdmin borrows £250,000 from NatWest using IP as collateral

☑️ LoveAdmin has secured a £250,000 Intellectual Property-backed loan from NatWest to support its business growth

☑️ The NatWest High Growth Intellectual Property-backed Loan is the world’s first ‘mass market’ loan for SME customers starting at just £250,000; this is the second loan to be offered under the new lending proposition

☑️ LoveAdmin automates member administration and payment for activity providers, sports clubs and membership bodies

A Brighton-based scaleup with a successful software platform that automates administration and payment collection for children’s activity providers, grassroots sports clubs and membership organisations has secured a £250,000 growth loan from NatWest using its intellectual property as collateral.

LoveAdmin was founded in 2009 by Dave Evans who, having volunteered for years at his son’s grassroots club, saw the need for sports management software to modernise the way clubs manage admin and payments. Today, it supports a broad range of activity providers, clubs and member organisations and the company has built a team of dedicated experts across product development, customer success, strategy and marketing.

In January 2024, NatWest became the first UK high street bank to offer IP backed lending to high growth SMEs, with its High Growth IP-backed loans starting from £250,000 up to 50% of the value of the firm’s intellectual property. The bank said IP-backed lending would improve the funding pipeline for scale-ups, which may have found it difficult to secure loans to drive their growth because of their lack of fixed assets.

The High Growth loan was developed in partnership with IP monetisation experts Inngot, and uses valuations provided by Inngot’s online tools to identify and evaluate relevant assets which could be taken as security for loans. IP can include software, patents, copyrights, trademarks and registered designs.

It was the board member representing the investment company with a stake in LoveAdmin that suggested talking to NatWest. Dave said: “NatWest was so refreshing to deal with — you got to talk to a real person who took the time to visit the company to learn more about our business and industry. It was definitely not a case of ‘computer says no!’, as can be typical with other lenders.” It was his NatWest Relationship Manager who suggested considering the IP-backed loan.

As with many scaleups today, the company’s core assets lie in its intellectual property and other intangibles (IP), notably its proprietary software code and its database of users; it has few physical assets. Dave added: “It’s great that finally there are organisations that recognise there is real value in intangibles. It would cost a rival millions to build what we have created. Being able to use our IP as collateral is testament to the lasting value our dedicated team has created.”

The £250,000 loan will be used to invest in the innovation and marketing of the completely refreshed LoveAdmin platform, which now features proprietary enterprise-level software supporting all aspects of the company’s business.

Claire Jackman, Senior Commercial Manager for NatWest Mid-Market in Sussex, who advised LoveAdmin, said: “LoveAdmin ticked all the boxes for lending except they lacked tangible assets. Dave made it clear he wasn’t happy with the idea of taking out a Personal Guarantee; but we had just launched the IP-backed loan, so I suggested that as a solution.”

She added: “As a Relationship Manager, it’s really exciting to be able to support IP-rich growth companies like LoveAdmin.”

Neil Bellamy, Head of Technology, Media, Telecoms & Services (TMT) at NatWest, said: “LoveAdmin is a great IP-driven business, and like so many of today’s growth companies, needs a bank that can recognise the value locked up in its intellectual property and other intangibles, rather than one that focuses on tangible assets. I’m also proud that, with Inngot, we have been able to democratise IP-backed lending, which used to be restricted to the world’s biggest companies, and make it affordable for IP-rich SMEs to borrow as little as £250,000. We have shown the potential that unlocking value from IP and intangible assets could have for the UK economy, by helping SMEs and growth business to scale and to create new high value jobs and drive UK productivity.”

Martin Brassell, CEO of Inngot, said: “This loan showcases the importance of IP and innovation, even for relatively small companies. With NatWest and Inngot’s approach, it is possible to take these business-critical intangible assets properly into account even at modest levels of lending. This points to the role IP can now play in fostering growth, from the beginning of a scale-up’s journey, right through to maturity.”