In an increasingly knowledge-based economy, intellectual property (IP) is one of the most valuable assets a business can own. From patents and trademarks to copyrights and trade secrets, these intangible assets can be the key to unlocking new funding opportunities. At Sorbus Finance, we specialise in helping UK businesses turn their ideas into capital through Intellectual Property Finance.
But what exactly is Intellectual Property Finance, who is it for, and how can it benefit your business? Let’s explore.
What Is Intellectual Property Finance?
Intellectual Property Finance is a form of asset-based lending that enables businesses to secure funding by leveraging their IP assets. These could include:
- Patents
- Trademarks
- Copyrights
- Design rights
- Software code
- Trade secrets and know-how
Rather than relying solely on tangible assets like property or equipment, IP Finance allows businesses to monetise the value of their innovations and creative assets.
How Does Intellectual Property Finance Work?
The process of raising finance against intellectual property typically involves:
1. IP Valuation
A professional, independent valuation is carried out to assess the current and projected value of your IP assets. This may include revenue from licensing, potential market size, or uniqueness of the technology.
2. Structuring the Facility
Lenders—often specialist providers—offer a loan or line of credit secured against the value of your intellectual property. This can often cover up to 50% of the IP’s assessed value.
3. Loan Terms
Loan terms are typically structured over 1 to 4 years, with repayment plans tailored to your cash flow and business model. This provides flexibility without the need to give up equity.
At Sorbus Finance, we work closely with IP experts and lenders to ensure a smooth, transparent process that aligns with your business goals.
Who Can Benefit from IP Finance?
Intellectual Property Finance is suitable for a wide range of businesses, particularly those in IP-rich industries or where intangible assets outweigh physical ones. These include:
- Technology companies – with proprietary software or patented hardware
- Pharmaceutical and biotech firms – holding research data, drug patents, or clinical trial IP
- Creative agencies and media businesses – owning copyrights or content libraries
- Manufacturers and product developers – with protected product designs
- Universities and R&D organisations – with licensable technologies or spinouts
Whether you’re scaling up, launching new products, or entering new markets, IP Finance can provide the liquidity needed to make it happen.
The Benefits of Intellectual Property Finance
✅ Access to Capital Without Dilution
You don’t have to give up equity to access growth funding—keep control of your business while raising the capital you need.
✅ Unlock the Value of Untapped Assets
Many businesses sit on valuable IP without realising its financial potential. IP Finance helps unlock this hidden value.
✅ Flexible Funding Structure
Tailored facilities mean you can structure repayments around your revenue cycle or future licensing income.
✅ Fuel Innovation and Expansion
Use the funds to invest in product development, marketing, or global expansion—without affecting your balance sheet as heavily as traditional loans might.
Is Intellectual Property Finance Right for You?
If your business owns valuable intellectual property, but struggles to access traditional finance, IP-backed funding could be the ideal solution. It’s especially effective for companies in growth mode, seeking working capital without diluting ownership or over-leveraging physical assets.
At Sorbus Finance, we understand the strategic value of intellectual property and work with a trusted network of lenders, IP specialists and advisors. We take a hands-on approach to structuring deals that are not only competitive but also sustainable for the long term.
Talk to the Experts
Whether you’re exploring options for IP-backed lending or want a fresh perspective on how to finance your next stage of growth, we’re here to help. Contact Sorbus Finance today to arrange a no-obligation consultation with one of our experts.
Still left with more questions or looking for more knowledge? Try this article from The British Bank.