NatWest launches Intellectual Property-based lending to fuel high growth businesses

NatWest Group has launched a brand new lending proposition for top progress companies to allow them to lever off the worth of their Mental Property (IP).

Excessive progress companies usually personal few tangible property, however might be wealthy in IP and intangible property. These companies can discover it tough to make use of their property as collateral to safe progress funding, particularly when put next with corporations holding extra standard property. This has led to a big progress funding hole for fast-growing, asset gentle companies which is estimated to be as a lot as £15 billion yearly.

In response, NatWest is evolving its excessive progress lending supply to help eligible IP-rich companies to unlock their full potential. Whereas the financial institution will at all times initially assess mortgage purposes to determine whether or not the shopper meets the standards for normal lending choices, if the financial institution can not meet a excessive progress enterprise’ borrowing wants by means of standard safety standards, it can think about whether or not it may increase funding by utilizing their qualifying IP property as collateral2. The financial institution will use valuations supplied by the specialist IP analysis firm Inngot to determine and consider related property which could possibly be taken as safety for loans.

The broader influence of scale-ups – outlined as companies that develop at greater than 20% every year – is demonstrated by the most recent report from the ScaleUp Institute. In 2023 there have been 28,410 scale-ups which generated a complete turnover of £1.3 trillion for the financial system and employed 2.6 million individuals. These corporations have an outsized influence on the financial system, producing 58% of the turnover of all UK SMEs regardless of making up simply 0.5% of the SME population4.

Andy Grey, Managing Director of Business Mid-Market at NatWest Group, mentioned: “Because the UK’s main enterprise financial institution, we’re delighted to have joined forces with Inngot, to offer a really modern and progressive proposition for top progress SMEs and scale-up companies. Many of those companies wrestle to entry debt funding once they want it with out having to dilute fairness. This new providing will enable these corporations to go additional and quicker of their progress journey.”

Martin Brassell, CEO of Inngot, mentioned: “With this new proposition,  NatWest is recognising that IP is an important element of worth for progress firms that should be thought-about correctly in lending choices. Many entrepreneurs will welcome NatWest’s emphasis on a enterprise’s intangibles, which have typically gone ignored, quite than counting on private or tangible property. There may be large potential to remodel the prospects of a few of our most enjoyable corporations by enabling them to leverage the issues that basically drive their success.”