High growth businesses, despite experiencing rapid expansion in terms of revenue, profits, and market capitalization, often possess few tangible assets. However, they frequently own intangible assets, such as goodwill, brands, digital assets, intellectual property (IP), and know-how.
To continue to grow, these high growth businesses must consider ways to finance their expansion. Unlike tangible assets, it is difficult to value these intangible assets because they have no physical shape or form. The question is, how do these ‘tangible asset poor’ businesses raise funding via traditional methods such as bank loans?
NatWest Group already provides funding opportunities for high growth businesses and has now extended their offering to IP-rich companies such as those described above. The offer was developed in partnership with Inngot IP, who are a specialist IP valuation company.
The new offering from NatWest Group distinguishes them from many other lenders because they are taking into account the IP that businesses own and using it as security for IP backed loans.
