Quick answer
Technology and software finance is funding used to buy hardware, upgrade systems, build or licence software and cover implementation costs. Ownright Custom Finance arranges technology finance Australia-wide, choosing between equipment finance, term loans and working capital depending on whether the spend is physical equipment, software or a mix.
Key points
- Computers, servers, point of sale and network gear can be financed as equipment
- Software, licences and development are harder to secure and often need other support
- Instant asset write-off rules may affect timing, so check with your accountant
- Bundled projects can use a mix of structures
- Suits
- Businesses upgrading systems, building products or scaling teams
- Common uses
- Hardware, point of sale, ERP, custom development, licences, security
- Security
- The equipment, a general security agreement or property
- Australia-wide
- Yes
What is technology and software finance?
Technology and software finance is money borrowed to pay for the digital side of a business. It might cover a fleet of laptops, a new server room, point-of-sale terminals, security systems, a customer management platform, annual licences or a custom-built application. The finance can be an equipment loan, a lease, a term loan or a line of credit, and sometimes it is a combination.
The tricky part is that technology is two very different things in a lender’s eyes. Hardware is a physical asset that can be repossessed and sold. Software, development and licences are intangible, so there is nothing to take. Ownright Custom Finance arranges technology finance across Australia and works out which parts of your project suit which structure.
Who uses technology finance?
- Small businesses replacing ageing computers and phones
- Hospitality and retail operators installing point of sale and kiosks
- Medical, dental and allied health practices upgrading systems
- Professional firms moving to new practice software
- Trades and logistics firms adopting fleet and job tracking tools
- Start-ups building a product with a development partner
- Growing companies rolling out security, cloud and network upgrades
For wider projects, see business expansion loans and our hub on asset finance.
How do lenders treat hardware versus software?
| Type of spend | How lenders view it | Typical finance route |
|---|---|---|
| Computers, servers, network gear | Tangible, but depreciates quickly | Equipment finance, short terms |
| Point of sale, cameras, kiosks | Tangible, resale limited | Equipment finance or lease |
| Packaged software and licences | Intangible | Bundled with hardware or working capital |
| Custom development | Intangible and project risk | Working capital or secured loan, staged drawdowns |
| Implementation and training | Services | Working capital or part of a bundle |
Our page on equipment finance explains how the asset acts as security. For items that are hard to secure, a general security agreement over the business can sometimes support the loan.
What do lenders look at?
- Trading history and profit
- Whether the technology supports revenue, such as a booking system or online sales platform
- Supplier quotes and invoices
- How quickly the equipment depreciates
- Existing debts and repayments
- The owner’s credit file and any guarantees
- For software projects, contracts, milestones and payment schedules
Lenders respond well to a business case that connects the spend to income or savings. A short explanation of what the system replaces and what it should improve is often enough.
How does the instant asset write-off interact with technology purchases?
The ATO states that for the 2025-26 income year, eligible small businesses with aggregated annual turnover under $10 million, using the simplified depreciation rules, can immediately deduct the business portion of an asset costing less than $20,000. The asset must be first used or installed ready for use between 1 July 2025 and 30 June 2026. Assets costing $20,000 or more generally go into the small business pool. Exclusions and conditions apply and it is for your accountant to confirm how it applies, but the dates can affect when you choose to buy and finance technology. We arrange the funding side.
How does Ownright approach technology finance?
Trevor Scott has 40 years of finance experience across many industries, and has seen technology projects stall because the lender could not take comfort in an intangible asset. Our approach is to break the project into parts. We might fund the hardware with equipment finance, the licences and implementation with a working capital facility, and the development with staged drawdowns. If the business owns property, we can also discuss using it as security so the whole project goes into one structure.
Ownright is about finding solutions that other brokers do not know about. When a lender says it cannot finance software, we ask whether it can finance the rest, and who can finance the part it cannot.
What does an illustrative scenario look like?
This is illustrative only. A physiotherapy clinic with three practitioners wants new booking and billing software, tablets for each room and upgraded network gear. The software vendor wants an annual licence, the hardware supplier wants payment on delivery. We would split the package into an equipment loan for the tablets and network gear and a working capital facility for the licence and implementation. A lender might consider the clinic’s steady revenue and the owner’s assets. Terms depend on the lender and approval is never assured, but the split structure usually gets better traction than one lump.
What mistakes should you avoid?
- Financing hardware over a longer term than its useful life
- Paying for a bespoke system without milestones or a clear scope
- Assuming a lender will treat software like a vehicle
- Ignoring annual licence costs that renew after the loan ends
- Buying just before a year-end deadline without checking the actual rules
- Not keeping tax invoices and installation dates
What documents should you have ready?
- Quotes and supplier invoices
- A short description of what the technology does for the business
- Twelve months of bank statements
- Recent BAS and tax returns
- For development, the contract and milestone schedule
- ID and details of any security offered
See how to get loan ready for a quick checklist, and start-up business loans if the business is new.
What should you check before signing a technology contract?
Technology deals often come with terms that matter for finance. Check whether the price includes installation, training and support, or whether those are charged separately. Ask how licences renew, what happens if you cancel early, and who owns the data and the code if the vendor is building something for you. For hardware, confirm the warranty period against the finance term so the equipment is still covered while you are repaying it.
Lenders prefer clear invoices with the supplier’s details, the item descriptions and serial numbers where available. If the purchase is a package, ask the supplier to itemise it so the finance can be matched to each part. A tidy invoice makes settlement quicker, and it makes any tax treatment easier for your accountant. Send us the quote before you accept it and we can say how the finance is likely to work.
Looking for finance for tech and software?
Sounds like you are looking for technology and software finance. We are the lending experts at splitting tech projects into pieces lenders will fund, so see if you qualify with the button below.
How it works, step by step
- 1
Step 1
Tell us what you are buying, what is hardware and what is software or services.
- 2
Step 2
We split the project into the parts lenders will fund most readily.
- 3
Step 3
We approach equipment and business lenders that suit each part.
- 4
Step 4
Documents are signed and suppliers are paid in line with the rollout.
Frequently asked questions
Can I finance software?
Sometimes. Hardware is easy to secure, but software, licences and development are intangible and lenders are cautious. They may fund software as part of a package with hardware, or through a working capital loan based on your trading. Tell us what is involved and we will structure it sensibly.
Can computers and servers be financed?
Yes, commonly. Equipment finance suits computers, servers, networking gear, point of sale, security cameras and similar items because the lender can take them as security. Rapid depreciation means terms tend to be shorter. We match the term to the likely useful life.
What about custom software development?
It is harder because the asset is not physical. Lenders usually look at the business's cash flow, other security and the contract with the developer. A staged drawdown aligned to milestones can help. We discuss how to present the project so the lender sees the return.
How does the instant asset write-off affect technology purchases?
For the 2025-26 income year, eligible small businesses with aggregated turnover under $10 million can immediately deduct assets costing less than $20,000, if first used or installed ready for use between 1 July 2025 and 30 June 2026. Rules and eligibility apply, so confirm with your accountant.
Can a start-up get technology finance?
It can be tougher without trading history, but not impossible. Lenders may look at the founders' experience, personal assets, contracts and the specific equipment. Property security can open more options. See our start-up founder pages and talk to us about your plan.
Should I lease or buy technology?
It depends on how quickly the technology becomes outdated, your tax position and whether you want ownership at the end. Leasing and hire purchase can both suit. We can walk through options and your accountant can confirm the tax treatment.