Reliving The Financial Problems In The Small And Medium-sized Enterprises Using Intellectual Property Mortgage Loans

For small and medium-sized companies, financing problems are always hard tobe solved. This is a common issue worldwide. However, in China, this problem mightbe more serious. Recently, a relatively new method–which is considered to behelpful in reliving financial problems in the corporations–is taken into accounts. Thismethod is called Intellectual Property Mortgage Loans (IPML). By employing thisapproach, the companies could get loans from banks or other financial institutions bymortgaging their intangible assets (e.g., Trade Mark Rights and Technology Patent,etc.) instead of tangible assets (e.g., equipments and factories, etc.). Actually, thismethod is widely used in most of the western countries such as the United States andmany European nations. However, in China, it was recently initiated (around the yearof2007) and still under developing. In fact, for innovative enterprises or other localfamous companies, they do not have enough tangible assets. However, they sharetheir advantages in having special Trade Mark Rights or Technology Patent. Hence,Property Mortgage Loans (IPML) might be quite suitable for them in applying someloans from financial organizations like banks. Guangzhou Hanmei Tea Company isconsidered as a local firm which is famous for its various tea products. In this report,the loaning processes of the Hanmei firm using Property Mortgage Loans (IPML) willbe introduced, as well as the potential problems that might be encountered whenpopularizing this IPML method. Also, future suggestions for the applications of IPMLin China will be proposed.