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IT and Technology Financing
IT and Technology Business Loans for You!
Managing cash flow can be challenging for technology entrepreneurs, especially if they’re new to the industry and don’t have sufficient funding. Additionally, tech business owners also need to pay vendors and contractors regularly, even when they’ve just started their business. While some vendors or contractors offer flexible terms, most of them demand quick payment.
Payroll expenses are often the biggest cost incurred by tech businesses, especially for software development companies. Unlike vendor payments, employees have to be paid often, and their salary cannot be delayed.
These expenses quickly drain limited financial resources.
Fortunately, there are a number of ways to finance your IT business. Most startup companies use their own seed capital to finance their business. Some may ask friends and associates to invest. Others obtain financing through angel investors or specialized venture capitalists. While these options have great benefits, they are often difficult to obtain.
SMB Compass is familiar with the challenges of obtaining financing for your IT and technology startup. Our team of lending experts will help you achieve the success you truly deserve.
Ready to Get Funded Today?
Quick application loan process and approvals in less than 24 hours
Best Ways to Use an IT and Technology Financing
Running a business can be difficult and expensive. But with SMB Compass, our lending experts will help find the best IT and technology loan for your business. Here’s a list of how you can utilize the funds you receive from technology financing.
Working Capital
The IT industry is capital intensive. You need to purchase costly equipment, hire skillful employees, retain them, and manufacture your products or services. Obtaining additional working capital will help your business get through slow seasons while you wait for revenue to generate.
Marketing and Advertising
When competing against well-established IT companies, you need to try your best to keep up. Investing in advertising and marketing efforts helps to get your brand or your products and services out there. There are a wide array of loan options to help you advertise and market your business so you can gain more clients and sell more products and services.
Business Expansion
If you’re ready for an expansion, your business will need funds to grow. Business growth is never cheap. Rent, renovations, and hiring new employees all require a lot of money. An IT and Technology business loan might give your business the chance it needs to expand.
Equipment Purchasing
How can you create quality and innovative technology if you don’t have the latest IT equipment? The IT industry relies heavily on modern equipment, and it does not come cheap. An IT and technology business loan will help pay the costs of the equipment you need to purchase for your business.
The Best Loan Options for IT and Technology Business Loans
At SMB Compass, we offer a variety of financing solutions for your IT and technology business. We make sure that you will have sufficient funding to take your business to the next level. Our financial advisors will recommend the best business loan tailored to your needs. Some of the most common IT and technology business loans are:
SBA 7(a) Loans
The SBA 7(a) loan program is the most popular financing program offered by the Small Business Administration (SBA). The loan provides flexible repayment terms and competitive interest rates for small businesses. It’s also guaranteed by the Small Business Administration by up to 85% to support small business growth.
startup costs, purchase equipment, purchase land, repair existing capital, fund growth opportunities, refinance debt, or purchase supplies.
Equipment Financing
IT firms need costly equipment to operate. Equipment financing helps IT firms pay the costs of the needed equipment for business, without the burden of large out-right purchases. You don’t have to secure equipment financing with personal or business assets, because the equipment itself serves as collateral. If you default on the loan, the lender will seize the equipment.
Bridge Loan
Do you need short term funding for your business? Bridge loans are intended to bridge the gap between an acquisition of a new property or other areas your business may need.
Multi-Year Term Loan
A multi-year term loan is a financing program that offers low monthly payments while providing sufficient working capital for day-to-day business operations. As the name suggests, a multi-year term loan has a repayment schedule of two to five years. If you want to apply for a multi-year term loan, you need to have a good historical cash flow, and a great personal and business credit.