IP owners can use patents as collateral for bank loans soon

[SINGAPORE] Local businesses will soon be able to use their patents as collateral for bank loans, with a new $100 million scheme by the Intellectual Property Office of Singapore (IPOS).

The Intellectual Property (IP) Financing Scheme, a two-year plan by IPOS, will involve the Singapore Government sharing the risk of the IP loan with participating banks, to encourage acceptance of IP assets as collateral.

"What we are (doing) is to work with the bank to recognise intangible assets, which is not quite something that is readily available in the loan market today," said chief executive of IPOS Tan Yih San during the scheme's launch yesterday. He added that the scheme opens avenues for companies to grow with ideas and expand, not just locally, but overseas as well.