Recording artist takes advantage of IP finance to raise capital
"Commercial Finance Partners took us seriously and we got the funding we wanted."
Recording Artist
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Intellectual Property Finance

Patents, trademarks, copyrights and brands are types of intellectual property that banks and finance companies may consider as collateral for part of an asset-based loan. Intellectual property finance is referred to as intangible asset finance by asset-based lenders and is not as common as the other asset types utilized in asset-based lending.

Companies will need to have extremely unique and valuable patents or a very well established brand name to receive funding on these assets. This type of funding does not stand on its own and is only used to augment the collateral in an asset-based loan.

A good example of IP finance is when David Bowie used the future royalties of music he had recorded in the 1980's to generate $55,000,000 of 'Bowie Bonds". Another example is when BCBG used intellectual property rights to generate working capital based on $50,000,000 plus of intellectual property rights.

While IP finance is not as common as other assets used to secure an asset based loan, if a company has intellectual property assets that have considerable value, the company can receive funding on these assets at bank rates.

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Pharmeceutical company uses intellectual property finance to gain additional working capital

Pharmaceutical Manufacturer

$10,000,000 IP Finance

Technology company uses IP Finance to generate working capital

Trading Software Company

$5,000,000 IP Finance