NatWest lends £700k to software company in first IP-backed loan
Company secures capital from the bank to support business expansion | New loans aimed at supporting high-growth firms | NatWest allows businesses to borrow against software, patents, copyrights, trademarks, and registered designs.
A software company has secured a £700,000 loan from NatWest, becoming the first IP-backed loan completed by the bank under a new lending scheme.
Sci-Net, a high-growth software company based in Chipping Norton (Oxfordshire), was the recipient of the bank’s new High Growth IP Loan, launched in January 2024.
Neil Bellamy, head of technology, media and telecoms at NatWest, said: “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.”
The loan demonstrates the potential of “unlocking value” from IP and intangible assets for the UK economy by helping firms to scale, create high value jobs and boost productivity, explained Bellamy.
NatWest’s loan: A breakthrough for SMEs
The newly introduced High Growth IP Loan, developed in collaboration with specialist IP valuers Inngot, aims to address the funding gap for high-growth firms.
Starting from as low as £250,000, the loan allows businesses to borrow against up to 50% of the value of their IP, which includes software, patents, copyrights, trademarks, and registered designs, as determined by Inngot’s tailored systems and processes.
Martin Brassell, chief executive of Inngot, said: “This marks the first time we have seen a UK bank willing to attribute collateral value directly to IP assets, at repayment levels that are highly affordable. The £250,000 starting point makes IP-based funding accessible to growth companies at real scale.”
It rewards UK SMEs for investing in IP, said Brassell, who believes it will help more companies to realise the importance and value of a strong IP strategy.
“I can’t think of a better way to encourage SMEs to take IP more seriously than to show them that they can borrow against its value,” he added.
Improving innovation and job opportunities
Founded in 1998, Sci-Net has established partnerships with multiple tech companies and businesses across the retail, e-commerce, and distribution industries.
Sci-Net's portfolio of clients includes national retailers such as Tapi Carpets, as well as jewellery retailers Missoma and Jessica McCormack, and national distributors.
Through the loan and support from NatWest, the company plans to further develop its enterprise resource planning>retail and enterprise resource planning>trade software, designed to help customers manage their entire business operations.
Additionally, Sci-Net predicted the loan would create six new job opportunities in the local area.
Duncan Fergusson, managing director of Sci-Net, said: “One of our biggest goals is improving efficiency, automation and customer service amongst businesses we work with and our software, which we’ve created and enhanced, has helped us to do just that.”
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