technology · Equipment & asset finance
Software finance
Software has no resale value, so this is really a cash-flow decision. We are upfront about how lenders price it and what terms are realistic.
What is software finance?
Software finance is funding for licences, implementation and subscription costs for business systems such as ERP, practice management and design software, spread over a term instead of paid upfront. It is unsecured in substance, so Australian lenders assess the business rather than relying on the software as security.
Big software projects are lumpy. An ERP or practice management implementation can cost more than the hardware it runs on, and the bill arrives before any of the promised efficiency is realised. Financing spreads that cost across the period the system is delivering value, which is a reasonable use of finance provided the business is genuinely committed to the project.
Be clear-eyed about what you are borrowing against. There is no asset to sell if things go wrong, so the lender is effectively lending unsecured and pricing for that. Terms are short and approval depends on your trading position. Where the project includes servers, workstations or devices, bundling hardware and software on one technology finance facility usually gets a better rate than software on its own.
Software finance at a glance
| Typical price range | $5,000 – $300,000 |
|---|---|
| Finance term | Up to 36 months |
| Useful life | About 4 years |
| New or used | Not applicable in the usual sense — software is licensed rather than owned, and finance covers licence fees, implementation and support rather than a physical asset. |
| Indicative rates (Technology finance) | 8% – 18% p.a. · rate history |
| Finance structures | Technology finance (recommended), Operating lease, Unsecured business loan |
How lenders assess software finance
Software cannot be repossessed, so lenders treat this as unsecured lending dressed in an equipment wrapper, and price it accordingly. Terms are short, usually 12 to 36 months, and approval depends on trading history and cash flow rather than the software itself. Implementation, data migration, training and first-year support can generally be bundled into the same facility. Where software is bought with hardware, funding both together on a technology finance facility usually produces a better outcome than funding the licences alone.
Before you buy
- Understand that you are financing a licence, not an asset — if the project fails, the debt remains.
- Include implementation, migration and training in the funded amount; these routinely cost as much as the licences.
- Check what happens to the licence and your data if you stop paying the vendor mid-term.
Commonly financed
MYOB Advanced and Xero · NetSuite and SAP Business One · Autodesk AutoCAD and Revit · Cliniko and Best Practice clinical software · Microsoft 365 and Dynamics 365
Estimate software repayments
- Number of repayments
- 36
- Balloon at end of term
- $30,600
- Total interest (est.)
- $33,462
- Total repaid (est.)
- $186,462
This calculator provides an estimate only and does not account for fees, charges or the specific terms a lender may offer. It is not financial advice or an offer of finance.
Key terms
What is software finance?
Software finance is funding for licence fees, implementation, migration and support costs, repaid over a term rather than paid upfront. Because software cannot be recovered and resold, it is assessed as unsecured lending and terms are usually 12 to 36 months.
Can implementation costs be financed?
Yes. Implementation, data migration, configuration, training and first-year support can generally be included in the funded amount alongside the licences. These services often cost as much as the software itself, so including them keeps the whole project on one facility.