Royal Bank of Scotland Introduces Loans Secured by Intellectual Property, Ranging from £250,000 to £10 Million

The Royal Bank of Scotland has announced plans to introduce intellectual property-backed loans, targeting high-growth businesses in Scotland. These loans will enable companies to utilize their intellectual property as collateral to access essential funding, rather than relying on traditional physical assets. The Royal Bank of Scotland is expected to begin offering these loans in Scotland in 2026. A recent change in Scottish law, the Moveable Transactions (Scotland) Act 2023, has allowed lenders to accept intellectual property rights as collateral. The bank plans to offer loans ranging from £250,000 to £10 million to improve funding opportunities for Scottish businesses that struggle to secure funding due to a lack of fixed assets. Last year, the Royal Bank of Scotland's parent company, NatWest Group, launched a similar set of intellectual property-backed loans in England and Wales, including a £600,000 loan to Liverpool-based developer Ripstone. These loans were developed in partnership with intellectual property valuation experts Inngot, utilizing their intellectual property identification and valuation tools. According to NatWest Group's Scotland Board Chair, Judith Cruickshank, 'this new loan demonstrates our support for innovation and businesses seeking investment, regardless of their stage in the lifecycle.' Cruickshank added, 'as companies invest in AI and digital capabilities, we anticipate increased demand for technology-driven services that may not have the same tangible assets as traditional businesses.' The Secretary of State for Scotland, Douglas Alexander, stated, 'this is welcome news from RBS that will expand the market for innovative companies to unlock Scotland's potential in technology and life sciences.' Alexander concluded, 'enabling Scottish businesses to leverage their intellectual property as collateral can remove traditional barriers to finance, helping IP-rich businesses to scale up and compete globally.'