Unlock the potential in your Software IP.
Intellectual property (IP) funding
For many businesses, the main challenge today is finding the finance to grow, especially when your cash is tied up in intangible assets that traditional banks do not accept as collateral.
These resources, such as knowledge-based assets like business critical software and its Intellectual Property (IP), could be an untapped source of funding for your business.
If you wholly own the software, we could help you to release the cash you have tied up within it without losing control of your business or giving away equity.
IP funding is an innovative way of injecting capital into your business without sacrificing control.
Is your business eligible?
No matter what industry you operate in, you could benefit from intellectual property funding for your software IP, as long as your intellectual software assets are:
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Wholly owned by you
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Clearly identifiable
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Business Critical
How does it work?
A specialist works with you to fully understand the role your software IP plays by calculating the collateral value of your IP. This is achieved by examining cash flows, third-party contracts, development costs and your future plans.
Once the collateral value is agreed upon, a credit facility is put in place.
The lender will license the use of your software back to you for an agreed term, usually ranging from three to five years.
Documents are issued, which creates a transfer of ownership of your software IP to the lender as collateral against your funding.
At the end of the term, the lender can sell the software IP back to you or a third party (at your request) or review the possibility of revaluing the software IP, with a view to commencing a new transaction.
Alternative to Private Equity
IP finance could be a great alternative to private equity, removing the need to sacrifice a stake in your company. Unlike equity, the lender doesn’t seek any control over your business or representation on the board.
Benefits of IP Finance
You retain the full day-to-day commercial use and control of your software IP and can continue to develop and maintain your business-critical software as normal.
The Funds can be used for any business purpose, including accelerating your development, expanding your sales time, or buying out investors.
A source of lower-cost capital by accessing competitive asset finance rates rather than paying an equity premium for your funding.
Any rights to buy back the title of the asset used as security may be forfeited if you do not keep up repayments on any debt secured on it. You should seek independent advice to determine if this product is suitable for you. Security may be required. Product fees may apply. Finance is only available for business purposes.