+1.970.776.4355

What is the effective interest rate of a patent loan?

In general, the effective interest rate for a patent loan will be in the neighborhood of 12-18%. The patent loan insurance product has a premium that is paid out of the loan proceeds, as well as due diligence fees and insurance premiums for the required enforcement and defense insurance. When you include interest paid back…

Read More

Is the patent loan program available to pre-revenue companies?

We prefer to provide loans to revenue generating companies, but we will consider pre-revenue companies in some cases. The loan program is a loan, after all, and we will evaluate your company to see if we believe that you will be able to repay the loan. Taking out a loan is much different than selling…

Read More

What is included in a patent loan?

A patent loan will come with several other components, including insurance for patent enforcement and patent defense. Because a patent loan is specifically designed to help you expand your business, we want you to focus on generating revenue, not litigation. Therefore, we require that you maintain at least $2,000,000 in patent enforcement insurance and patent…

Read More

What are the requirements for a patent loan?

The patent loan program requires several items about your patents and your business plan.  This is not a complete list. 100% ownership of your patents. Your patents must be completely unencumbered and must be owned by the operating company.  Some investors will attach liens to intellectual property, which is a non-starter.  In many cases, the…

Read More

How does the patent loan program work?

We provide an insurance policy that will guarantee a lender (typically a bank) using the patents as collateral. The Collateral Protection Insurance product is similar to mortgage insurance, where the bank has protection if there is a default on the loan. The CPI product requires investment-grade patents and a solid business plan.  The patents must…

Read More