The IP lending scheme went live at a launch event with representatives from Scotland’s technology and creative sectors at the University of Edinburgh.

The lending offer will deliver loans ranging from £250,000 to £10 million and ensure that businesses that do not have significant access to physical assets can borrow against the value of their IP. 

RBS-owner NatWest Group launched IP lending for businesses in England and Wales in 2024. All applicants’ IP is independently reviewed by the group’s valuation partner, Inngot, and the bank can lend against up to 50 per cent of the orderly disposal value found.

The bank has already funded £34m in loans through this scheme. This has included support for companies, final rentals, a digital platform provider connecting travellers with local car rental providers, in Cardiff and Iliad Solutions, a payments testing and certification platform provider, based in Leeds who both received £750,000 in the last two months.

The new product was enabled by the Moveable Transactions (Scotland) Act 2023, which came into effect last year.

Robert Begbie, CEO commercial & institutional, Royal Bank of Scotland, said: “This new lending offer has game-changing potential for firms in Scotland’s high growth and innovation sectors – like gaming, life sciences and tech.

“As we look to the future, more and more firms in innovation industries will lack the tangible physical assets that are used as collateral in traditional lending. Our new product gives those firms with exciting ideas and high potential a new route to access the capital they need to grow.

“Our Royal Bank IP lending product is now open to applications and we look forward to expanding our support for growing Scotland’s innovation economy.”

Martin Brassell, CEO of Inngot, said: “Scottish inventions and creativity have shaped our world. It’s high time that we made it easier for innovative Scottish businesses to raise non-dilutive funding. Thanks to Scotland’s legal reforms, harnessing IP and intangibles is now a viable way to improve the flow of capital to the companies that need it most.”