Software financing is still not widely available among financing companies, but it is growing in popularity as a way for equipment financing and equipment leasing companies to grow their portfolios and add long term customers.
Software financing options are typically done through an equipment or asset lease from a computer equipment leasing company. Because the financing commitment is largely based on the financial strength of the company and credit profile of the company and owners, different lease financing companies will have different considerations when it comes to financing software. For instance, there are companies that will only look at software purchases under $50,000, fewer that will look at amounts under $100,000, and a much smaller group that will consider applications in the hundreds of thousands of dollars.
So if you have a software financing need, it will be important to make sure you’re applying for equipment financing for not only the type of software you’re looking for, but the amount as well.
This is a growing segment of the asset financing industry in that software is a growing market and every business needs to invest in software. And because of the rapid changes in technology, additional software purchases are going to be required over the life time of the company, setting up the opportunity for leasing companies to acquire repeat business at potentially a faster rate than what they would expect for other types of assets.
Because this is more of a specialized form of asset financing, you would be well served to work with an equipment financing specialist that has strong software financing sources for a broad range of borrower or business requirements. This will get you working with the right financing or leasing company faster, allowing you to not only secure the software financing you’re looking for but, but also securing the best available rates and fees for your specific situation at a given point in time.
The stronger your companies financing profile, the better rates and terms of repayment you can expect to secure. Operating leases can also be secured to provide both taxation and cash flow management options for the business.
If you have a software financing requirement, we suggest that you give us a call so we can quickly assess your requirements and provide relevant software financing options that meet your needs.