Intangible Asset Financing

Definition

The use of intangible assets — including intellectual property, brand, customer contracts, and software — as collateral or as the basis for securing debt financing or alternative capital structures. Intangible asset financing is an emerging area of structured finance addressing the mismatch between the growing proportion of enterprise value attributable to intangibles and the traditional preference of lenders for tangible security. Specialist lenders, IP-backed lending facilities, and royalty monetisation structures are the primary instruments in this market.