Royal Bank of Scotland (RBS) has become the first bank in Scotland to offer lending secured against intellectual property (IP), launching a new financing product designed to help technology firms, university spinouts and creative businesses access growth capital.

The bank announced the launch of its IP lending scheme at an event hosted by the University of Edinburgh, with loans ranging from £250,000 to £10 million available to businesses whose value lies primarily in intellectual property rather than physical assets.

The move follows changes introduced under the Moveable Transactions (Scotland) Act 2023, which came into force last year and made it easier for companies to use intangible assets such as patents, software, trademarks and other intellectual property as collateral.

RBS said the new product aims to address challenges faced by high-growth firms in sectors such as technology, gaming and life sciences, where businesses often have significant intellectual assets but limited access to traditional forms of secured lending.

The scheme builds on a programme launched by parent company NatWest Group in England and Wales in 2024. Under the model, intellectual property undergoes an independent valuation by specialist partner Inngot, with the bank able to lend against up to 50 per cent of the assessed orderly disposal value.

NatWest has already provided £34 million through the scheme south of the border, including recent funding for payments testing and certification platform provider Iliad Solutions and digital car rental marketplace Final Rentals.

Robert Begbie, chief executive commercial & institutional at Royal Bank of Scotland, said the new product gives those firms with exciting ideas and high potential a new route to access the capital they need to grow.

“This new lending offer has game-changing potential for firms in Scotland’s high growth and innovation sectors – like gaming, life sciences and tech,” he added. “As we look to the future, more and more firms in innovation industries will lack the tangible physical assets that are used as collateral in traditional lending.”

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