In a knowledge-based economic development environment, intellectual property (IP) has already become an important business asset with a major bearing on a company's core competitiveness, especially in the case of small and medium enterprises for which intellectual property rights (IPR) constitute the core of their value. Because of the immaturity of related laws and regulations and the financing transaction environment, as well as the lack of related supporting measures for controlling IPR financing risks and financial institutions' insufficient confidence in the existing appraisal system or institutions, appraisal criteria and assessment of the value of IPR can not easily gain acceptance from banks, making it all the harder for companies to obtain financing with IP. Therefore, before the IPR financing system reaches maturity, the government will continue to promote the “credit guarantee” system as the main policy tool for IPR financing. From the government's point of view, the credit guarantee mechanism has a crucial place in IPR financing and offers the fastest and most efficient means of promoting its IPR financing policy; from the enterprises' point of view, it helps them smoothly obtain financing, a shortcut to meeting their capital needs; and from the financial institutions' perspective, it serves as the best instrument for avoiding risk and raising their asset quality. In the future, Taiwan's Small & Medium Business Credit Guarantee Fund (SMEG) should utilize new kinds of financing tools in combination with the credit guarantee mechanism, to help the government establish our country's own mechanism for obtaining IPR financing.