Intellectual Property-Backed Lending
What is Intellectual Property-Backed Lending?
Intellectual property (IP)-backed lending is an innovative lending method that helps IP-rich companies unlock their intellectual property's potential value.
Using market-leading, proprietary IP valuation tools and a collateral valuation protection insurance policy, Aon can help enable IP-rich businesses as they seek to borrow against their intellectual property. Aon works with many different lenders, including the Aon Advantage Funds, which may be borrowing options for eligible businesses.
Why is IP-Backed Lending Important?
When raising capital, companies typically have two options – selling equity or borrowing based on the strength of the balance sheet of cash flows. For emerging IP-rich companies, incurring debt is not always an option and diluting ownership is not always ideal.
The growth of intellectual property (IP) – patents, trademarks, copyrights, and trade secrets – has driven the rotation of 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. IP-backed lending can give business owners a way to access debt capital that can be less expensive and dilutive than equity options.
IP-backed lending can offer both borrowers and lenders a new opportunity to unlock a valuable and previously untapped marketplace.
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Disclaimers
Insurance products and services offered by Aon Risk Insurance Services West, Inc., Aon Risk Services Central, Inc., Aon Risk Services Northeast, Inc., Aon Risk Services Southwest, Inc., and Aon Risk Services, Inc. of Florida and their licensed affiliates. All descriptions, summaries or highlights of coverage are for general informational purposes only and do not amend, alter or modify the actual terms or conditions of any insurance policy. Coverage is governed only by the terms and conditions of the relevant policy. Coverage may not be available in all jurisdictions.
The information contained herein and the statements expressed are of a general nature and are not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information and use sources we consider reliable, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
All descriptions, summaries or highlights of coverage are for general information purposes only and do not amend, alter or modify the actual terms or conditions of any insurance policy. Coverage is governed only by the terms and conditions of the relevant policy.
