ABGI Supports Clients Restart Innovation with Software Asset Finance
How will SMEs operating within the UK knowledge-based economy, secure the funding they need to drive the economic recovery we all need?
08 July 2020
SMEs are the lifeblood of the UK economy. Their ability to innovate and grow fast are a key determinant in our successful post covid-19 recovery, and to our nation’s long-term competitiveness. However, most SMEs will require funding during the restart phase to fuel innovation and market development.
How will SMEs operating within the UK knowledge-based economy, secure the funding they need to drive the economic recovery we all need?
With most mainstream lenders still requiring security against fixed assets, this could be a major stumbling block.
In today’s knowledge-based, data-driven economy, fewer companies have the need to invest in tangible assets: a survey by Standard & Poors in 2018 showed that 84% of the total value of S&P top 500 companies was made up of intangible assets, up from 17% in 1975, when the top 500 companies was dominated by more traditional manufacturing companies.
So, how do we facilitate access to much needed loans for companies where the main assets are intangible, particularly intellectual property for which there is no standard valuation process?
Software asset finance uses the hidden value of a company’s unique software intellectual property (IP) as collateral for security, therefore providing an innovative way of raising funding for a business with limited fixed assets, without sacrificing control of valuable intangible assets.
Article originally published on Digital Lancashire
