What is the effective interest rate of a patent loan?

This page is an FAQ based on guidance from the Manual of Patent Examining Procedure. It is provided as guidance, with links to the ground truth sources. This is information only: it is not legal advice.

The effective interest rate for a patent loan will be in the neighborhood of mid- to high-teens.

In some cases, we can offer loans in the low-teens, but that is usually reserved for companies with especially good cash flow.

Please note that this rate is much lower than angel or venture equity, which is typically 50% or more. By taking a loan against the assets you already created, you can get much further without having the negative effects of selling your equity to investors.

Other Related FAQs

5 FAQs

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• How is the value of my IP determined for a loan?
• What types of IP can be used for IP-backed loans?
• My patents are being infringed. How does that affect a patent-backed loan?
• Does the patent loan program require a personal guarantee?
• Is the patent loan program available to pre-revenue companies?