Founded in 1998, Oxfordshire-based software company Sci-Net Business Solutions delivers ERP business management software and cloud infrastructure solutions for its clients, working with leading software providers and developing its own software to seamlessly integrate systems and platforms, empowering businesses to operate more efficiently and achieve their goals more quickly.
They are a Tier 1 Microsoft Dynamics & Azure Gold Partner, offering industry-specific software for sectors including: Multi-Channel Retail & Ecommerce, Fashion & Apparel, Manufacturing and Production; Jewellery, Furniture & Flooring, Wholesale & Distribution, Buying Groups & Societies, and Merchants & Trade Counters.
Sci-Net secures £700,000 as an ideal candidate for our IP-backed loan premiere
Earlier this year, Sci-Net contacted us to discuss financing options for their ambitious growth plans and, because of our long-standing relationship, we quickly recognised that their valuable IP assets made them a perfect fit for our new IP-backed loan solution.
We worked with Inngot, a specialist IP valuation company, to identify and evaluate the relevant assets that could serve as collateral, and based on this valuation agreed a £700,000 loan.
Sci-Net will use the proceeds from our IP-backed loan to grow their customer base and to fund the development of their ERP>Retail and ERP>Trade software solutions that will help those customers manage their entire business operations. And as a result of this loan and the new work it generates, Sci-Net is expecting to create six new local jobs too.
NatWest’s innovative proposition offers loans based on businesses’ IP value
High growth businesses generally own few tangible assets but can be rich in IP and intangible assets. These businesses can find it difficult to use their assets as collateral to secure growth funding, especially when compared with firms holding more conventional assets. This has led to a growth funding gap for fast-growing, asset-light businesses which is estimated to be as much as £15 billion annually1.
In response, NatWest has created its high growth lending offer to help eligible businesses with valuable IP assets achieve their full potential. When we receive a loan application, we will first check if the customer qualifies for standard lending options based on conventional security criteria. If not, we will see if they could raise funding by using their qualifying IP assets as collateral. For these cases, we will use Inngot, a specialist IP evaluation company, to identify and evaluate relevant assets that could include the likes of: software, patents, copyrights, trademarks and registered designs. Loan amounts vary from £250,000 up to 50% of the value of the firm’s intellectual property.
“NatWest offering loans against the value of IP is one of the best pieces of economic news for some time”
Duncan Fergusson, Managing Director of Sci-Net, said: “Our key goals focus on improving efficiency, automation, and customer service amongst the businesses we work with, and our software has helped us to do just that! Receiving this loan from NatWest is a fantastic opportunity to further develop that software so we’re able to work with more businesses in new sectors. NatWest has been very helpful with providing not just financial assistance, but excellent business support and advice too. Our Relationship Manager has been incredibly supportive and has always gone above and beyond – we can’t thank him enough for his help.”
David Buckmaster, Relationship Manager at NatWest, added: “Duncan and the whole Sci-Net team are some of the most intelligent and ambitious people I’ve had the pleasure of mentoring. Their hunger for success never ceases to amaze me and I’m proud to support them on their growth journey.”
Neil Bellamy, Head of Technology, Media and Telecoms at NatWest, commented: “It’s a pleasure to have supported Sci-Net with the bank’s first IP-backed loan. We work with some of the country’s most innovative start-ups, and our aim is to enable them to leverage the things that really drive their success. With this loan, we have shown the potential that unlocking value from IP and intangible assets could have for the UK economy – by helping firms to scale, create high value jobs and boost UK productivity. I am excited to see what Sci-Net does next.”
Martin Brassell, Chief Executive of Inngot: “This marks the first time we have seen a UK bank willing to attribute collateral value directly to IP assets at repayment levels that are highly affordable. The £250,000 starting point makes IP-based funding accessible to growth companies at real scale. It rewards UK SMEs for investing in IP, and I believe it will help more companies to realise the importance and value of a strong IP strategy. I can’t think of a better way to encourage SMEs to take IP more seriously than to show them that they can borrow against its value.”
Will Hutton, journalist and co-chair of the Purposeful Company: “NatWest offering loans against the value of intellectual property is one of the best pieces of economic news for some time. If the British banking system gets behind the intangible economy and intellectual property, we could see a real breakthrough in hi-tech.”2
