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NatWest Launches Intellectual Property-Based Lending

NatWest Group has launched a new loan offer for fast-growing businesses.

NatWest Launches Intellectual Property-Based Lending

As part of the new solution, the mentioned financial institution will provide clients, which in this case are organizations, to use the value of intellectual property. Oftentimes, businesses that demonstrate high growth rates have a limited number of tangible assets. At the same time, such companies very often have large-scale intellectual property. Moreover, businesses, which are characterized by rapid growth, are traditionally rich in other assets belonging to the category of intangible values. It is difficult for such companies to use the existing base of values as collateral to obtain the financing necessary for intensive development.

This problem manifests itself when comparing the capabilities of firms rich in intangible assets and the capabilities of brands with traditional assets in the context of the chances of obtaining credit funds.

Against the background of the mentioned realities, a shortage of financing for the development of fast-growing businesses has formed. Preliminary calculations indicate that the lack of funds in this case amounts to up to 15 billion pounds per year. It should be clarified that in the context of this problem, fast-growing businesses with limited assets are meant.

NatWest is committed to eliminating the specified deficit. To achieve the corresponding goal, the financial institution develops its offer with high growth rates. This decision of the bank will support businesses that have a significant asset base in the form of intellectual property. The financial institution’s proposal will also unlock the potential of such companies.

Traditionally, any bank, as part of the evaluation of a loan application, examines the compliance of the organization intending to receive funds with the criteria of standard financing options.

The new NatWest decision provides that during the mentioned procedure, the possibilities of using intellectual property as collateral will be considered. In this case, the financial institution intends to focus on the conclusions provided by the specialized intangible asset valuation company Inngot. The specialists of the specified firm will determine the suitability of values that do not have a material form of existence for use as collateral for loans.

Last year, 28,410 scale-ups were generated in the United Kingdom, with a total turnover of 1.3 trillion pounds and involving 2.6 million people. Such companies have a significant impact on the British economic system, generating 58% of the total turnover of small and medium-sized businesses in the United Kingdom. At the same time, these firms account for only 0.5% of the specified business sector.

Andy Gray, Managing director of the Commercial Medium Market at NatWest, said that this organization, as the main business-oriented British bank, is pleased to join forces with Inngot. As part of the new initiative, the financial institution will offer an innovative and progressive solution for fast-growing companies. Andy Gray noted that it is difficult for many of these firms to access debt financing without having to dilute equity. As part of the new solution from NatWest, companies will receive funds to increase their growth rates and move further in development.

Martin Brassell, CEO of Inngot, says that the proposal of the mentioned financial institution is a recognition that intellectual property is a vital component of value for firms in a state of rapid growth. He also noted that many entrepreneurs welcome NatWest’s focus on intangible business assets, which are often ignored. According to him, there is a huge potential to change the prospects of some of the most exciting companies, allowing them to use what really contributes to success.

As we have reported earlier, Ex-NatWest Boss Loses Out on £7.6 Million.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.