NatWest Group annual report highlights IP-backed loan developed in partnership with Inngot

NatWest Group has just published its annual report and accounts for 2024 – and there are case studies on two of the High Growth IP-backed loans Inngot helped them deliver during the year.

The two case studies feature innovative Bristol-based high-tech prosthetics company, Open Bionics, which uses 3D printing to tailor artificial limbs for people, and Leicester-based environmental tech company EarthSense, which has developed sensors and supporting software to help monitor air pollution, so it can be better controlled.

The NatWest High Growth IP Backed loan is the first commercially available loan targeting high-growth scale up companies which allows them to use their intellectual property and related intangible assets as collateral for bank borrowing. Software, patents, copyrights, trademarks, registered designs and other intangibles can be valued and used as collateral.

Developed jointly with IP valuation specialists Inngot, the IP-backed loan addresses the long-standing challenges faced by innovative businesses in securing debt financing. You can find a review of many of the loans delivered under the High Growth IP-backed loan on Inngot’s site here (some clients have requested details not be published).

https://inngot.com/news-views/2024-review-natwest-ip-backed-loans-hit-the-ground-running-with-high-growth-companies

Traditionally, many SMEs struggle to access loans because they often lack sufficient tangible assets to offer as collateral for a loan, often leaving them reliant on issuing more equity to finance themselves, with a resulting dilution of control of the business. NatWest's IP-backed loan seeks to close this gap by recognising the financial value of IP and allowing IP to be used as collateral for lending.

This is a revolutionary solution to the challenges facing IP-rich but tangible asset poor scale-ups and SMEs. Until the launch of the NatWest IP-backed loan in January 2024, using debt to fund expansion or research and development was an expensive option for these companies, and often involved directors being asked to provide Personal Guarantees, effectively putting their private homes up as collateral if the lender felt there was not enough value in the company assets.

Under the NatWest IP-backed loan proposition, loans are secured against up to 50% of the value of the firm’s qualifying intangible assets, as determined by Inngot’s sophisticated IP identification and valuation toolkit. Using Inngot's online IP identification and valuation tools platform keeps costs low and it can be done quickly. This means small loan sizes become competitive, opening up IP-backed finance for SMEs and scaleups. The starting loan size is £250,000.

Inngot also worked with NatWest to develop a completely new online tool, which assesses not just the value of a company’s core IP, but also its suitability as collateral for bank lending.

The partnership between NatWest and Inngot not only highlights the growing importance of intangible assets in today's economy but also positions NatWest as a pioneer in supporting IP-rich businesses. This initiative demonstrates a commitment to fostering growth and innovation by enabling scaleups to unlock the financial potential of their intellectual property.

NatWest has put a video case study on Open Bionics on social media here: https://www.linkedin.com/posts/natwest-group_supporting-customers-ugcPost-7297174329916538880-Q_Vo?utm_source=share&utm_medium=member_desktop&rcm=ACoAAAJG6HkB4SOKxWAfLmfh8nw5BppufP1euSc

The banking group’s reports and accounts and its sustainability report for 2024 can be viewed here: https://investors.natwestgroup.com/annual-report