patent as collateral?

Question

are there any government or any lenders that would allow you to use your patent as collateral on a loan

Answer 1

There are banks and financial institutions that accept patent portfolio as collateral for a loan, but to do this your patent needs to have high value to it. The tricky part will be how to evaluate the patent you have -- and this is why most banks still do not accept intellectual properties as collateral to loans

You may want to read Patent Valuation at IP Bewertungs AG (IPB) as an example of how a company was able to get financing via their patents http://www.wipo.int/sme/en/documents/patent_valuation.htm

Check out Peer to Patent where the community can evaluate your patent http://www.peertopatent.org/

Read the articles as the articles mention companies involved in securing financing via patents

Intellectual property: A new form of collateral http://www.bizjournals.com/seattle/stories/2005/03/07/focus9.html
Intellectual property and access to finance for high growth SMEs http://ec.europa.eu/enterprise/entrepreneurship/financing/docs/financing_smes_workshops_2006/ip_disscussion_paper_2006.pdf
Collateral Salvage http://www.cfo.com/article.cfm/4032858?f=related
Intellectual Property: Collateral for Securitization or Lending http://www.allbusiness.com/legal/intellectual-property/1051949-1.html

Get a copy of the book Intellectual Property: Valuation, Exploitation, and Infringement Damages http://www.currentpartnering.com/reports/523?reports=report_type.books as it discusses the process of putting value to patents possibly as loan collateral

Answer 2

Probably not - the patent doesn't have monetary value by itself. If you've developed a business based on a product you have patented, then you might be able to use the business as collateral.