Funding software without giving up equity

Last updated 3 November 2026 · Reviewed by 360 SaaSFin Compliance

What does giving up equity mean?

Raising equity means selling part of your business, usually shares in your company, to investors in exchange for capital. The investors then own part of the business. They may share in future profits and sale value, and may have a say in how it's run.

When new shares are issued, the existing owners' share of the business gets smaller. That's called dilution. Startups often sell equity to raise capital, including for software and technology.

What is non-dilutive funding?

Non-dilutive funding is funding that doesn't require you to give up ownership. Business loans, leases and other forms of finance are common examples. You repay the finance, and ownership stays with you.

Software finance is one form of non-dilutive funding. 360 SaaSFin arranges it for eligible businesses in Australia and New Zealand. It's for businesses, not personal use.

How does software finance work without equity?

Depending on the project and the lender, software finance is arranged as a business loan or a lease. Either way, the lender doesn't take a share of your business. All finance is subject to the lender's assessment.

1. Tell us about your project. Share the software, services and investment you need to finance.
2. We structure the finance. We design a payment structure that fits your project and cash flow, subject to the lender's assessment.
3. The vendor and partner are paid. Once the finance is approved and documents are complete, the vendor and systems integrator (SI) are paid upfront and implementation can begin.
4. You pay over the agreed term. Your business makes regular payments over the agreed term, without diluting its ownership.

What can be funded this way?

Software finance can bring these costs together in one plan, subject to the lender's assessment:

• Software subscriptions (SaaS): licences and annual subscriptions for online software such as Salesforce, Microsoft 365 or Xero.
• Upgrades, renewals and expansions: so a platform can grow without waiting for the next budget cycle.
• Refinancing of existing contracts: eligible existing software or implementation contracts.
• Implementation and partner services: implementation, consulting, configuration, development and partner services.
• Managed services: ongoing support as your technology needs grow.

What are the trade-offs?

Each way of funding growth has costs, and they show up differently.

• With equity: there are no repayments, but you give up part of the ownership, and with it a share of future profits and value. Investors may also bring expertise and connections.
• With software finance: you keep your ownership, but payments are due for the full term whether or not the project goes to plan, and fees and charges apply. The lender will assess your application against its criteria.

Some businesses use both. What suits your business depends on your plans, your cash flow and, for finance, the lender's assessment.

Is software finance available to startups?

Startups and growing businesses are welcome to talk to us. The lender will assess your application against its criteria, so whether finance is available depends on your business and the project. Talk to us while you're still planning, so you know the options before you commit.

What about tax and accounting?

How software finance is treated in your accounts and for tax depends on your business, the contracts involved and whether the finance is a loan or a lease. Ask your accountant before you sign. We don't give tax or accounting advice.

What should we have ready?

• Project scope: the platforms, number of users, phases and what's in and out of scope.
• Quotes and timing: current vendor and SI quotes, and key dates such as contract signing and go-live.
• Business details: the lender will ask for information about your business and its finances as part of its assessment.

FAQs

General information only. It doesn't take into account your objectives, financial situation or needs, and it isn't credit, tax, accounting or legal advice. Finance is subject to the lender's assessment and criteria; fees and charges apply. 360 SaaSFin is a trading name of Kuone Consulting Pty Ltd (ABN 75 647 329 002), Australian Credit Licence 566705.