NatWest ventures into intellectual property-based lending
The high street bank is partnering with Inngot to provide scale-ups with the chance to raise funds against unconventional assets
NatWest Group is launching intellectual property-based lending for high-growth businesses.
The new, IP-based lending proposition aims to provide businesses without conventional assets with an opportunity to leverage their intangible assets to secure growth funding.
With the growth funding gap for asset-light businesses estimated to be as much as £15bn annually, there is a large space for fast-growing, IP-rich businesses.
After initially assessing whether a customer is eligible for standard lending options, if the bank cannot meet a high-growth business’ borrowing needs, it will then consider whether a business could raise funding by using its qualifying IP assets as collateral, partnering with online IP valuation toolkit Inngot.
“As the UK’s leading business bank, we are delighted to have joined forces with Inngot, to provide a truly innovative and progressive proposition for high growth SMEs and scale-up businesses,” NatWest Group managing director of commercial mid-market Andy Gray said.
“Many of these businesses struggle to access debt funding when they need it without having to dilute equity. This new offering will allow these firms to go further and faster in their growth journey.”
This will prove particularly useful for growth companies and scale-up businesses, which generated a total turnover of £1.3 trillion last year, employing more than 2.5 million people.
“Many entrepreneurs will welcome NatWest’s emphasis on a business’s intangibles, which have often gone ignored, rather than relying on personal or tangible assets,” Inngot CEO Martin Brassell said.
“There is massive potential to transform the prospects of some of our most exciting firms by enabling them to leverage the things that really drive their success.”