- Market-leading IP-backed loans will allow high-growth businesses to secure funding against the value of their intellectual property where conventional lending isn’t suitable
- High-growth technology businesses in England have already accessed £22m in IP-backed loans through the bank in partnership with IP valuation specialists Inngot
- Announcement welcomed by the Deputy First Minister and Secretary of State for Scotland
- Initiative unveiled as global business leaders gather at the Scottish Global Investment Summit at RBS’s Gogarburn headquarters
The Royal Bank of Scotland (RBS) has unveiled plans to introduce the first IP-backed loans for high-growth businesses in Scotland, enabling them to access crucial funding using the value of their intellectual property as collateral rather than relying on traditional physical assets.
The move follows changes to Scottish law earlier this year, when the Moveable Transactions (Scotland) Act 2023 came into effect, allowing lenders to accept effective security over IP rights.
Launching next year, the scheme will offer loans from £250,000 to £10 million, improving access to finance for high-growth Scottish firms which often struggle to secure funding due to a lack of fixed assets.
RBS’s parent company, NatWest Group, launched IP-backed lending in 2024 under the NatWest brand and has already provided more than £22 million in loans to high-growth businesses across England and Wales. Beneficiaries include companies developing cloud-based software, smart systems, advanced engineering technologies and AI-driven gaming platforms.
Among the success stories is Bristol-based prosthetics specialist Open Bionics, which uses advanced 3D printing and scanning to create affordable custom-built bionic arms. It secured a £600,000 IP-backed loan to open six new clinics in the US, enabling more patients to access its innovative Hero Arm.
Liverpool-based games studio Ripstone, recognised for producing a game inspired by the Netflix hit ‘The Queen’s Gambit’, also secured a £600,000 finance package using its IP as collateral to develop new titles.
The new lending proposition is expected to benefit Scotland’s thriving interactive entertainment hub in Dundee, as well as health tech, life sciences and robotics firms across the country.
NatWest Group’s latest Business Growth and Innovation Hotspots index places Edinburgh and Glasgow among the UK’s top 10 mid-market growth areas, with Aberdeen ranking in the top 25 – driven largely by technology-led businesses.
Scotland’s climate tech sector alone employs 30,000 people and contributes more than £15 billion annually. Edinburgh leads in this field, Glasgow is recognised for its growing fintech cluster, and Aberdeen is at the forefront of renewable energy transition, carbon capture and climate technology innovation.
The announcement coincides with the Scottish Global Investment Summit, hosted by RBS at its Gogarburn headquarters on 6–7 October, which brings international investors together to explore Scotland’s future opportunities and celebrate its long tradition of innovation.
Judith Cruickshank, NatWest Group’s Scotland Board Chair, said: “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. 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. 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.”
The NatWest Group IP-backed loan scheme has been developed in partnership with IP valuation experts Inngot to support high-growth, IP-rich but asset-light businesses by enabling them to use their IP as collateral.
Inngot’s IP identification and valuation tools are integral to delivering this loan proposition, helping innovative businesses leverage their intangible assets to access finance, invest in research and development, and scale their operations.
Martin Brassell, CEO of Inngot, added: “IP has been called the ‘currency of the knowledge economy’ – it’s that important. However, for a currency, it’s not been very liquid in the past. This initiative improves liquidity by enabling businesses to borrow cost-effectively against the value of the intangible assets they own, and fund their creation of new ones to boost growth and competitiveness. We’re delighted that recent legal changes now make it possible for Scottish firms to benefit.”
Deputy First Minister Kate Forbes said: “Scotland has an incredibly strong track record of invention and innovation and it must be a shared endeavour to support our business founders start and scale-up.
“Access to capital is of course fundamental to businesses growth and the Scottish Government brought forward new legislation in 2023 to enable businesses to use their IP to raise finance in the same way as they use physical assets.
“It is welcome and exciting to see the Royal Bank of Scotland’s plans for an IP-backed loan and I look forward to it providing invaluable support to help kick-start the country’s greatest ideas and business innovation.”
Scottish Secretary Douglas Alexander commented: “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. This new funding source could help these IP-rich businesses scale up and compete on the global stage. It’s particularly exciting to see this launching alongside the Scottish Global Investment Summit, showing international investors that Scotland is serious about supporting the businesses of the future.”
