Funding For IT And Software Companies
Finance for services companies, product firms and IT-enabled businesses — where the balance sheet holds people and receivables instead of machines and property.
How funding works in this sector
An IT company's costs are almost entirely salaries, and salaries are paid monthly while clients pay on their own terms — thirty, sixty, sometimes ninety days after an invoice, and later still if the client is overseas or a government body. Growth makes this worse, not better: every new project means paying a team for months before the first invoice is settled.
The other difficulty is structural. Lenders are used to security they can value — a plant, a property, a stock of goods. A services company has a client list, a contract pipeline and a receivables ledger, and the whole case has to be built on those.
Where the money gets stuck
- Payroll every month, against client payments that arrive on invoice terms
- Ramp-up costs when a new project or contract starts
- Overseas receivables with longer settlement and currency exposure
- Infrastructure and licence costs bought up front and used over years
- Government and PSU contracts with long payment and retention cycles
How a services company gets funded
- Unsecured facilities, assessed on banking conduct and revenue quality rather than on collateral
- Receivables-backed limits, where the contracts and the ageing support them
- Property-backed borrowing where a promoter is willing to use it, at a materially lower cost
- Equipment and infrastructure funded separately from working capital, so the tenures match the use
Talk to someone who knows the cycle
Tell us the requirement and how your business actually gets paid. We will come back within one working day with the facilities that fit — and say so plainly if debt is the wrong instrument for what you are trying to do.
Or call +91 8087674850
The facilities that fit an IT company
Every product we arrange is available to this sector. These are the ones its cash-flow shape actually calls for.
Funding for your it & software business
Tell us the amount, the purpose and how your customers pay you. A funding specialist will call back within 24 hours — no obligation, and no advance fee at any stage.