NatWest Group, a prominent UK banking institution, has announced an innovative lending proposition targeting high growth businesses.
The primary objective of this new product is to address the significant funding gap faced by high growth businesses, which is estimated at around £15bn annually. These companies, often rich in Intellectual Property (IP) but lacking tangible assets, struggle to secure growth funding through traditional means.
This novel lending approach by NatWest involves using a business’s IP assets as collateral. In partnership with Inngot, a specialist in IP evaluation, NatWest aims to unlock the hidden value in intangible assets, providing a unique financial solution to eligible businesses.
The initiative is not just about lending; it’s about recognizing the inherent value in intangible assets. This approach could significantly impact the way high growth businesses view and utilize their IP.
The move is timely, considering the substantial economic contribution of scale-ups, defined as businesses growing by over 20% per annum. In 2023, these companies accounted for 58% of all UK SME turnover, highlighting their vital role in the economy.
Andy Gray, Managing Director of Commercial Mid-Market at NatWest Group, emphasized the importance of this initiative, “As the UK’s leading business bank, we are delighted to have joined forces with Inngot, to provide a truly innovative and progressive proposition for high growth SMEs and scale-up businesses. Many of these businesses struggle to access debt funding when they need it without having to dilute equity. This new offering will allow these firms to go further and faster in their growth journey.”
Martin Brassell, CEO of Inngot, also shared his views: “With this new proposition, NatWest is recognising that IP is a vital component of value for growth companies that must be considered properly in lending decisions. Many entrepreneurs will welcome NatWest’s emphasis on a business’s intangibles, which have often gone ignored, rather than relying on personal or tangible assets. There is massive potential to transform the prospects of some of our most exciting firms by enabling them to leverage the things that really drive their success.”
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