Intellectual Property-Backed Lending
Learn how your organization can benefit from IP-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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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.