The Royal Bank of Scotland has announced a "game-changing" new product that enables high-growth businesses to secure loans against the value of their intellectual property. This marks the first such offering in the UK and aims to support companies that lack traditional physical assets like machinery or buildings.
What the New Lending Product Offers
RBS's IP-backed lending product provides loans ranging from £250,000 to £10 million, specifically designed for businesses in sectors such as technology, life sciences, gaming, and creative industries. The initiative is particularly beneficial for university spinouts and firms with transformative ideas but limited tangible collateral.
Robert Begbie, CEO of Commercial & Institutional at RBS, said: "This new lending offer has game-changing potential for firms in Scotland’s high growth and innovation sectors. As we look to the future, more and more firms in innovation industries will lack the tangible physical assets used as collateral in traditional lending. Our new product gives those firms with exciting ideas and high potential a new route to access the capital they need to grow."
Expert and Government Support
Martin Brassell, CEO of Inngot, commented: "Scottish inventions and creativity have shaped our world. It’s high time that we made it easier for innovative Scottish businesses to raise non-dilutive funding. Thanks to Scotland’s legal reforms, harnessing IP and intangibles is now a viable way to improve the flow of capital to the companies that need it most."
UK Government Minister for Scotland, Kirsty McNeill, said: "This innovative funding model by the Royal Bank of Scotland recognises the evolving industrial and economic landscape, as well as showing confidence in the value and potential of these companies. It is encouraging to see new ways businesses in Scotland can be supported to grow, unlocking technological and creative developments to benefit both now and in the future."
Ben Macpherson, Scottish Government’s Innovation Minister, added: "Scotland is home to an incredible array of exciting entrepreneurs, start-ups and spinout opportunities - and it must be a shared endeavour to support our business founders establish and scale-up. Access to capital is of course fundamental to this success and I look forward to the Royal Bank of Scotland’s IP-backed loan providing invaluable support to help kick-start the country’s greatest ideas and business innovation."
