How software finance works

Last updated 3 November 2026 · Reviewed by 360 SaaSFin Compliance

What is software finance?

Software finance lets a business spread the cost of software, SaaS subscriptions, implementation and integration services into regular payments over an agreed term. SaaS (software as a service) is software you pay for by subscription and use over the internet, such as Salesforce, Microsoft 365 or Xero. Set-up, data migration and training costs can often be financed together with the subscription, subject to the lender's assessment.

360 SaaSFin arranges the finance. The lender assesses the application and, if it's approved, provides the finance.

What can software finance cover?

Finance can cover five kinds of technology cost, and they can be brought together in one plan rather than financed piecemeal:

• Software subscriptions (SaaS): licences and annual subscriptions for online software such as Salesforce or Microsoft 365.
• 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, to smooth cash flow and keep a project moving.
• Implementation and partner services: implementation, consulting, configuration, development and partner services.
• Managed services: ongoing managed services and support as your technology needs grow.

What goes into your plan depends on the project and the lender's assessment.

How does it work, step by step?

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 partner are paid upfront and implementation can begin.
4. You pay over the agreed term. Your business makes regular payments over the agreed term, so more working capital stays available for the rest of the business.

How are software vendors and systems integrators paid?

Once the finance is approved and documents are complete, vendors and SIs (systems integrators) are paid upfront by the lender. Your business then pays over the agreed term.

Your finance documents set out the term, the payment schedule and any fees and charges, so read them carefully before you sign.

Is software finance a loan, and does it affect 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, so you don't give up any equity. All finance is subject to the lender's assessment.

Startups often sell equity to pay for growth; financing software and technology costs lets a business spread them over an agreed term without diluting its ownership. Like any finance, it's a commitment: payments are due for the full term, so make sure they fit your cash flow.

Who is software finance suited to?

It's generally worth a look if your business:

• is planning a software, cloud or AI project and the budget timing doesn't match the project timing
• wants licences, cloud platforms, integrations and implementation in one plan
• is adding users, modules or new platforms, or has a large renewal coming up
• is a growing business or startup that would rather not give up equity to pay for technology

Whether it suits you depends on your business, the project and the lender's assessment.

What should I have ready?

• Project scope: what's being bought or built, which platforms, how many users, and what's in and out of scope.
• Vendor and SI quotes: current quotes or proposals for licences, subscriptions, implementation and managed services, showing who is being paid for what.
• Timing: when the contract is due to be signed, when work starts, and any go-live or renewal dates.
• Business details: the lender will ask for information about your business and its finances as part of its assessment.

Talk to us while you're still planning, so you know your finance options before you commit to delivery.

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.