Does HSBC lend against intangible assets?

Full Explanation

Yes, HSBC does lend where intangible assets form part of the picture, though it does so in a slightly different way from a dedicated IP loan. HSBC UK evaluates intellectual property and other intangibles within its Growth Lending, a fund launched in 2022 and £350m since December 2023, and has said it uses Inngot's tools to value IP and intangible assets. HSBC has published no IP loan size or advance rate, so the IP is assessed as part of a wider credit decision rather than as a standalone collateral pool.

That distinction matters. Where IP is one strand of a wider credit assessment, its individual contribution to what you can borrow is assessed case by case rather than advanced against a headline valuation. As across the wider market, lenders weigh separability, saleability and legal strength when judging how much comfort the intangibles actually provide on default, and registered rights such as patents and trade marks will generally count for more than unregistered know-how.

The underwriting fundamentals are the same as elsewhere. Operating cash flow is the primary repayment source, with collateral as the fallback, so serviceability is central, commonly evidenced by a debt service coverage ratio around 1.20-1.25 times, supported by two to three years of statutory accounts, current management accounts and a cash-flow forecast with sensitivities. On the security side, you will need clean legal title, a documented chain of title, rights that are in force, and clear prior-charge searches at Companies House and the UK IPO. Any charge is registrable at Companies House within 21 days under section 859A of the Companies Act 2006.

Because HSBC's approach folds IP into a wider facility, the strength of your overall evidence base tends to matter more than any single IP figure. If you are approaching HSBC, or comparing it with a dedicated facility such as NatWest's, prepare a consolidated pack that sets out your intangibles, their valuation on a lending premise, the enforceability of title and your serviceability case in one place. That lets you engage on the substance rather than reconstructing your position for each lender, which is precisely what Opagio's IP-lending tooling supports.

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