National Westminster Bank, commonly known as NatWest, is offering a new scheme to businesses to help them secure funding and in turn, will use the customer’s IP as collateral. In some cases, this may even perhaps be IP customers are unaware of. This is tangent to the typical way of raising funds for business.
The scheme ties in with the loan application process already in place, as NatWest will assess applications and establish if applicants meet the standard lending options and if not, the bank will consider raising funds using IP assets as collateral. This is on the condition that the IP rights pass an evaluation provided for by Inngot, a specialist IP evaluation company. Inngot will help businesses identify their IP rights and evaluate assets that could be used as security for a loan.
This may be a huge step in helping SMEs and high-growth businesses that have few tangible assets and struggle to access debt fundings. As demonstrated in the new scheme, IP can be used as a form of leverage in favour of the owner.
If you have any questions on the above, please do not hesitate to contact the team at McDaniels Law on 0191 281 4000 or legal@mcdanielslaw.com.
