NatWest has issued its first-ever Intellectual Property-backed (IP) loan to software company Sci-Net.

The £700,000 loan comes several months after the bank announced it was introducing lending for high growth businesses based on the value of their IP.

While these companies often own few tangible assets, they can be rich in IP and intangible assets.

These firms can find it difficult to use their assets as collateral to secure growth funding, particularly when compared with firms holding more conventional assets.

NatWest's rules require businesses that classify as high growth to show 20 per cent year-on-year growth in turnover over three consecutive years, with a minimum turnover of £250,000 and/or a minimum £50,000 equity or grant investment over a two-year period.

According to the bank, the NatWest High Growth IP Loan is the world’s first mass market loan for SME customers.

“As a bank we work with some of the country’s most innovative start-ups and our aim is always to enable them to leverage the things that really drive their success,” said Neil Bellamy, head of technology, media and telecoms at NatWest Group. “With this loan, we have shown the potential that unlocking value from IP and intangible assets could have for UK economy, by helping firms to scale, create high value jobs and boost UK productivity. I am excited to see what Sci-Net does next.”

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