Intellectual Property-Backed Lending
Unlock the value of intellectual property to access debt capital
When raising capital, companies typically have two options – selling equity or borrowing based on the strength of the balance sheet or cash flows. For emerging IP-rich companies, incurring debt is not always an option and diluting ownership is often not ideal.
The growth of intellectual property (IP) – patents, trademarks, copyrights, and trade secrets – has driven the rotation in company assets from tangible to intangible, but accounting practices have not always kept pace. As a result, intellectual property is generally under-appreciated as a source of corporate value.
Aon has developed a way for companies to unlock the value of their intellectual property, giving business owners a way to access debt capital that can be less expensive and less dilutive than equity options.
Using market-leading, proprietary IP valuation tools and a collateral protection insurance policy, insuring the IP will be worth no less than up to 90-100% of the principal loan amount, Aon enables IP-rich businesses as they seek to borrow against their intangible property. Aon also has access to discretionary lending capital, which may be a borrowing option for these IP-rich businesses.
This innovative lending method offers both borrowers and lenders a new opportunity to unlock a valuable, and previously untapped, marketplace.
The growth of intellectual property (IP) – patents, trademarks, copyrights, and trade secrets – has driven the rotation in company assets from tangible to intangible, but accounting practices have not always kept pace. As a result, intellectual property is generally under-appreciated as a source of corporate value.
Aon has developed a way for companies to unlock the value of their intellectual property, giving business owners a way to access debt capital that can be less expensive and less dilutive than equity options.
Using market-leading, proprietary IP valuation tools and a collateral protection insurance policy, insuring the IP will be worth no less than up to 90-100% of the principal loan amount, Aon enables IP-rich businesses as they seek to borrow against their intangible property. Aon also has access to discretionary lending capital, which may be a borrowing option for these IP-rich businesses.
This innovative lending method offers both borrowers and lenders a new opportunity to unlock a valuable, and previously untapped, marketplace.