Royal Bank of Scotland to launch IP-backed loans ranging between £250,000 to £10m

The Royal Bank of Scotland has unveiled plans to launch IP-backed loans aimed at “high growth businesses” in Scotland.

These loans will allow companies to “access vital funding using the value of their intellectual property as collateral, instead of traditional physical assets.”

The RBS is expected to start offering IP-backed loans in Scotland in 2026.

Earlier this year, a change in Scottish law – the Moveable Transactions (Scotland) Act 2023 – came into effect, resulting in lenders being able to accept “effective security over IP rights.”

The RBS plans to initiate loans between £250,000 up to £10 million to “improve the funding pipeline” for businesses in Scotland who struggle to secure funding due to a “lack of fixed assets.”

Last year, RBS’ parent company NatWest Group launched its own set of IP-backed loans in England and Wales. This included a £600,000 loan to Liverpool-based developer Ripstone to negotiate a finance package to support development of new projects.

These IP-backed loans were designed in partnership with IP valuation experts Inngot, utilising the company’s IP identification and valuation tools.

“This new loan demonstrates how we are supporting innovation and businesses who are seeking investment home and abroad, whatever stage they are at in their lifecycle,” said NatWest Group’s Scotland Board Chair Judith Cruickshank.

“As more companies invest in AI and digital capabilities, we expect to see an increased demand for technology driven services which may not have the same tangible assets as more traditional businesses.”

Cruickshank continued: “Our IP-backed loan offering is a key example of how NatWest is supporting Scotland’s digital economy, helping IP-rich firms to accelerate investment and facilitate growth without diluting ownership.”

Secretary of State for Scotland Douglas Alexander added: “This is welcome news from RBS that will widen the market that helps innovative companies unlock Scotland’s extraordinary potential in technology and life sciences.”

“Enabling Scottish businesses to leverage their intellectual property as collateral can remove the traditional barriers to finance which have held back some of our most innovative companies.”

Alexander concluded: “This new funding source could help these IP-rich businesses scale up and compete on the global stage.”