The Royal Bank of Scotland is set to introduce IP-backed loans with amounts ranging from £250,000 to £10 million

The Royal Bank of Scotland plans to introduce loans backed by intellectual property for fast-growing companies in Scotland. These loans offer funding by using the value of intellectual property instead of relying on physical assets.

RBS is set to roll out these loans throughout Scotland starting in 2026. This initiative follows the implementation of the Moveable Transactions (Scotland) Act 2023, which now permits lenders to secure loans with intellectual property rights.

Targeting businesses that typically face challenges in accessing funding due to insufficient fixed assets, RBS will offer loan amounts between £250,000 and £10 million. This effort aims to enhance financial resources for Scottish companies.

Last year, NatWest Group, RBS' parent company, implemented similar IP-backed loans in England and Wales. This included a notable £600,000 loan to Ripstone, a Liverpool development firm, to aid in crafting financial packages for new initiatives.

Inngot, specialists in IP valuation, collaborated with NatWest to devise these loans, utilizing their innovative IP assessment tools.

Judith Cruickshank, Chair of NatWest Group’s Scotland Board, expressed their commitment to fostering innovation and investment at any life cycle stage. With a surge in AI and digital investments, there is anticipated growth in demand for tech-driven services which may lack tangible assets found in traditional businesses.

Cruickshank emphasized that their IP-backed loans play a significant role in bolstering Scotland’s digital sector, enabling IP-intensive firms to boost investment and growth while preserving ownership.

Douglas Alexander, Secretary of State for Scotland, welcomed the announcement, noting it could help innovative Scottish companies utilizing their intellectual property to overcome traditional financial barriers, thereby enabling them to expand and compete globally.