A new product to the market is Software Financing.
Typically, the major banks will not fund software on its own. They are however willing to assist when the software is purchased together with hardware (Laptops, Servers etc) but it comes with strict stipulations that the software can make up no more than 5%, 10%, 15% etc. of the total invoice price (the percentage varies according to the lenders policies).
One of our panel lenders has laynched a Software Funding product to fill the void.
For our clients, this will be particularly useful when new and improved software products become available for their business.
Brief description of the product
- Min Loan amount $1,000.00
- Max Loan amount: $10,000.00
- Loan terms 12 months to 60 months (usually runs in proportion to the loan amount)
- Established businesses (min 2 to 3 years)
- Satisfactory fallback of Directors
- Funded by either Lease Agreement or Rental Agreement only.
- No financials required.
The above is a general guide only and does not guarantee automatic approval. All applications are subject to the lenders standard lending criteria, and on the rare occasion, they may request additional information to support the application. Decisions are given within 24 hours of submitting the application, in some instances the decision can be given same day.
For some small businesses, taking a lump sum of cash to purchase software (or any other capital purchases) can have a negative impact on their cashflow, but these purchases are a necessity for the improvements and continuation of the business. This is where financing can assist and lessen the impact on a business’s cashflow.
Monthly payments on most Leasing and Rental products are 100% tax deductible. (Naturally you should always speak with your accountant / tax advisor to discuss the impact on your tax position before entering into any financial commitment). We can work with your accountant / tax advisor to ensure any finance contract is tailored to your individual requirements.
For Software Manufacturers, do you have financing options in place? We are able to offer streamlined processes to help you increase your sales. We can even provide your Sales Team with a simple Loan Calculator and a 2 page application form. After all, you’ve spent the time and money to get in front of these clients, it would be a shame not to close the sale by not having financing options.
If you’re thinking of funding your next software purchase, or any other Plant, Equipment or Machinery (including Vehicles) for that matter, don’t hesitate to contact us. Don’t forget we can provide you with quotes over the phone.
