Equipment loan · IT and technology
Equipment loan for it and technology
IT and technology finance is lending to managed service providers, software businesses and IT resellers, funding hardware for client deployments, software and licence costs, and the working capital of recurring-revenue models.
How a equipment loan works for it and technology
Where a technology business is buying hardware for its own use — a lab, a data centre rack, workstations for a growing engineering team, testing equipment — a straightforward equipment loan over three years is usually the cheapest structure. IT hardware depreciates quickly, so lenders keep terms short and balloons small or absent. Do not stretch a five-year term over hardware you will replace in three; the last two years of payments on obsolete equipment are pure cost.
The cash-flow pattern we plan around
Hardware and licence costs paid on 30-day distributor terms against client invoices settled 30–60 days later, or recurring monthly revenue that recovers up-front costs across a multi-year contract.
What it and technology typically fund
- Servers, networking and endpoint hardware for deployments
- Software licences and subscription costs
- Funding hardware sold on as-a-service contracts
- Hiring engineers ahead of contracted revenue
- Office and lab fit-out
Equipment loan for it and technology: the numbers
| Typical amounts | $5,000 – $5,000,000 |
|---|---|
| Term | 12–84 months |
| Indicative rates | 6.9% – 16% p.a. |
| Repayments | Monthly |
| Speed | Same day to 48 hours for low-doc |
| Documents it and technology usually need | ABN and two years of financials or 12 months of bank statements · Contracted recurring revenue schedule · Distributor quote or purchase order for hardware |
Rates shown are indicative ranges observed across our lender panel for the period stated. They are not an offer or quote. Your rate depends on your business, the lender, the amount, the term and the security offered. The lender makes the final credit decision.
Key terms
Technology finance
Technology finance is lending for IT hardware, software licences and cloud services, often structured so that a three-year hardware purchase is repaid over the same term as the client contract it supports.
Recurring revenue lending
Recurring revenue lending is an assessment approach that sizes a facility against contracted monthly subscription income and customer churn rather than against physical assets or historical profit.
What is equipment finance?
Equipment finance is any loan or lease used to acquire business equipment, with the equipment typically serving as security. The main structures in Australia are chattel mortgages, finance leases and rentals.
Low-doc equipment finance
Low-doc equipment finance approves smaller amounts (often up to $150,000–$250,000) without full financials, relying on ABN age, GST registration, credit history and sometimes a property-owner declaration.