What is the effective interest rate of a patent loan?
The effective interest rate for a patent loan will be in the neighborhood of 9-12%. 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 to a…
Read MoreDoes the patent loan program require a personal guarantee?
No. The patent loan program does not normally require a personal guarantee. We provide an insurance product that will guarantee a lender in case of a default. However, a lender may still have the final say as to whether or not to require a personal guarantee.
Read MoreIs 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. For pre-revenue companies, our patent financing option will build out your portfolio quickly so that it will be ready once your company starts generating revenue. The loan program is a loan, after all, and we will evaluate…
Read MoreWhat 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 give you at least $2,000,000 in patent enforcement insurance and patent defense insurance.…
Read MoreWhat 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 MoreHow 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 MoreWhat risk is BlueIron taking when financing a patent?
BlueIron is taking several risks when financing a patent. BlueIron is taking the risk that the patent will even issue. BlueIron is making an investment in researching the invention, writing the patent, and getting the patent through the patent office. If BlueIron fails to get a patent, you can walk away from the deal at…
Read MoreHow long does it take to get a patent?
BlueIron can get a US patent as quickly as six months or less in some cases. However, many times it takes 3 to 5 years. How do we do it? BlueIron’s founder, Russ Krajec, had the opportunity to join a startup company where we needed patent assets as fast as possible. In that startup, he…
Read MoreWho controls my patents when they are financed?
You have full control of your patents while BlueIron finances them. However, just like having a landlord for your office space, BlueIron “owns” the patents. There is a difference between control and “ownership.” BlueIron “owns” the patents, but you control them. Having control of the patents means that you get all the benefits of owning…
Read MoreWho is the insurance carrier for patent insurance?
We offer a wide range of patent enforcement and patent defense insurance, however, our main insurance provider is a program manager for a Lloyd’s of London syndicate that focuses on intellectual property insurance.
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