IP Finance Institute

Intellectual Property Finance Competence Centre

 

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IP LOAN 



IP loan is a bank loan using IP asset as collateral. Lender, usually, offers borrower non recourse loans at a loan to value ratio of 25-30% of the appraised value of the asset (depending on the asset quality, asset holder creditworthiness, and other risk factors).
 


Benefit:
  • Introduction of a new asset class for debt financing and companies credit merit valuation

Issue:
  • Difficulty in valuation of the IP asset value (needs of standardization)
  • Collateral disposal in case of default

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