IP Finance for the Masses: Unleashing the Potential of IP-Backed Loans for SMEs and Scale-Ups

In an era of rapid technological advances and innovation, intellectual property (IP) has become a cornerstone for businesses seeking a competitive edge.

However, accessing finance by using IP assets as security has traditionally been limited to large companies, because of the complexities involved in assessing IP value and packaging such loans.

As a result, IP-backed loans have until recently only been accessible and affordable to large companies, due to the manual processes involved in evaluating and managing the risks associated with such loans and the associated costs of valuing the IP.

But now, thanks to a pioneering collaboration between Inngot and NatWest Group, SMEs and scale-ups can tap into the power of IP finance like never before.

Breaking Down Barriers to IP Finance

With Inngot's online tools facilitating the identification, valuation, and assessment of IP assets for suitability as collateral, NatWest's IP-backed loans are game-changing financing options for IP-rich high-growth businesses. The simplicity and cost-effectiveness of this new product means SMEs and scale-ups now have the opportunity to access the potential of IP finance for growth.

Inngot Software: Unlocking the Value of IP

Inngot's world-leading software, continuously developed and refined over 10 years and featuring advanced algorithms and data-driven analysis of IP licensing rates and transactions, simplifies and streamlines the IP identification and valuation process.

More importantly, it allows businesses to identify and value their own IP assets accurately and generate a report which they can literally take to the bank.

NatWest is not the first lender to use Inngot’s reports in its loan consideration process; but it is the first to have access to Inngot’s latest tool, developed with support from Innovate UK, the UK’s innovation agency, which explores the suitability of specific IP as collateral, and likely disposal values. Together, Inngot’s reports serve as the foundation for NatWest's latest IP-backed finance proposition.

With these reports to support its decision-making process, NatWest can explore financing options tailored to the specific needs of each SME or scale-up. This streamlined process allows for efficient evaluation and decision-making, enabling businesses to access the financing they require quickly.

Empowering IP-Rich High-Growth Businesses

SMEs, and particularly scaleup companies, need cost-effective and fast IP identification and valuation tools. So do lenders, if they want to service the SME funding market at scale. Inngot’s tools give SMEs potential access to the same opportunities to unlock the value of their IP assets as larger corporations have enjoyed for years.

The benefits of lending using IP as collateral for debt funding are significant:

1. Access to Capital: SMEs and scale-ups can secure much-needed capital to fund growth initiatives, such as expanding into new markets, investing in research and development, or scaling operations.

2. Valuing Intangible Assets: Inngot's software provides accurate and comprehensive valuation of IP assets, allowing businesses to highlight the hidden value of their intangible assets during the loan application process (and also helping them better manage their IP long-term).

3. Reduced Risk: By using IP assets as collateral, businesses can mitigate risks associated with traditional forms of financing, as the loans are secured against the intrinsic value of their IP portfolios.

4. Streamlined Process: The combination of Inngot's software and NatWest's IP-backed loans streamlines the financing process, making it more accessible, efficient, and tailored to the unique needs of each business.

Embracing the Future of scaleup Financing through leveraging IP value

As technological advancements continue to shape industries and drive innovation, IP finance is taking centre stage as a vital tool for growth. With IP-backed loans becoming readily available to SMEs and scale-ups, these businesses will be able to seize new opportunities, expand their operations, and achieve their ambitious goals.

Disclaimer: The information provided in this article is for informational purposes only and should not be considered financial or legal advice. It is recommended to consult with professionals specializing in IP finance and valuation, as well as representatives from NatWest, before making any financial decisions.