Technology Business Loans
Get growth capital that doesn't cost you a piece of the company.
Checking your options takes a few minutes, and no board approval or cap table conversation is required.
Business loans for technology companies
Extend your runway without giving up a share of the company. Technology companies spend ahead of revenue: you hire engineers, pay for cloud infrastructure, and land enterprise clients who take 60 or 90 days to pay. That gap between building and getting paid is where good companies stall, and FundBetter fills it without asking for board seats or equity.
One application, a FundBetter funding advisor, and funds in as little as 24 hours mean you can extend runway on your own schedule.
Why technology companies need working capital
Spending ahead of revenue
Keep building while recurring revenue catches up. Salaries and infrastructure get paid long before it does.
Hiring ahead of demand
Move on the best engineers the moment you find them, not when the budget feels comfortable.
Slow enterprise payments
Ship on your own schedule even when large clients love net 60 and net 90 terms. Invoice factoring turns those open invoices into cash, so waiting on payment doesn't force you to slow down.
How lenders underwrite technology business loans
A conventional bank underwrites collateral. It wants equipment it can repossess, inventory it can sell, or property it can lien. A software company has almost none of that. Your balance sheet is laptops, some cloud commitments, and a codebase no lender knows how to value. On paper you look thin even when the business underneath is healthy.
The timing works against you too. Engineering payroll is spent months before the feature it built produces a dollar of revenue, and an enterprise sales cycle can run two or three quarters from first call to signature. Annual contracts get signed for the full year but billed monthly, so cash arrives in twelve slow pieces while the cost of winning the account lands up front.
A revenue-based lender reads different numbers. Recurring revenue is the anchor: what's billing this month, and what has billed reliably for six to twelve months. Then retention, because net revenue retention above 100 percent means the existing base is growing on its own. Then growth rate, steady beating spiky. Then CAC payback, because a company that recovers acquisition cost in eight months can be funded to spend more, while one that takes three years can't.
Business model matters too. A SaaS product company earns predictable subscription revenue at high gross margin and is the cleanest fit for revenue-based financing. An MSP earns contracted monthly revenue but carries hardware and labor cost against it. An agency bills projects, which is lumpier and underwritten more like a services business. Say which one you're early, because it changes the offer.
Revenue-based financing vs. a term loan
Both are non-dilutive, but they behave differently month to month. A long-term business loan spreads a large fixed cost over years, while revenue-based repayment flexes with your billing.
| Consideration | Revenue-based financing | Term loan |
|---|---|---|
| Dilution | None. No equity, warrants, or board seat. | None. The lender is a creditor, not a shareholder. |
| Repayment | A fixed share of monthly revenue. A slow month means a smaller payment. | A fixed amount on a fixed date, strong month or weak. |
| Underwriting | MRR and ARR, net revenue retention, churn, growth trend, CAC payback, account concentration. | Time in business, cash flow, credit profile, often a personal guarantee. |
| Typical use | Sales ramp, engineering hiring, cloud spend that scales with usage. | A one-time cost with known payback, such as hardware for a deployment. |
| Who it suits | A subscription business with high gross margin, where a share of revenue still leaves enough behind to operate. | An MSP or agency with thinner margins that needs a payment it can price into a contract. |
What technology business loans pay for
Working capital for software companies funds five places, each with a different payback shape, before the revenue lands.
Engineering hiring ahead of revenue
Hire on the candidate's timeline rather than payroll's. A senior engineer costs you for two or three quarters before the work ships and starts converting, and funding that gap is what lets you move now.
Cloud and infrastructure costs
Cover the cloud bill as it scales instead of pacing your growth to it. Compute, storage, data transfer, and the tooling around them scale with usage, so the bill grows before the invoices that justify it clear, and committed-use discounts require paying up front to save later. A business line of credit fits this because you draw only what the month requires.
Enterprise sales and marketing ramp
Put more sellers and paid acquisition to work ahead of closed revenue. If CAC payback is under a year and retention is strong, spending into that with borrowed capital is defensible. If payback is unproven, it isn't.
Hardware for IT and MSP deployments
Front the servers, firewalls, switches, endpoints, and licensing an MSP deployment needs before the client contract starts billing. Equipment financing matches the cost to the asset, while a term loan covers the mixed hardware and labor of a rollout.
Security and compliance certification
Fund the SOC 2, ISO 27001, HIPAA readiness, and penetration testing that open enterprise deals. They carry audit fees, tooling costs, and months of engineering time and produce no revenue directly, but the largest accounts won't sign without them, so the return shows up in pipeline rather than invoices.
Technology business loans vs. equity funding
Debt lets you keep the whole company, and equity doesn't. The difference is who carries the risk if growth doesn't arrive. Weigh this with your own finance and legal counsel.
When debt works better for a software business
- You keep every share. No dilution, no new preference stack, no board seat, no investor veto over how you run the company.
- Capital arrives in days rather than the months a raise consumes, so an engineering hire does not wait on a process.
- You are funding measurable payback, such as sales headcount where CAC payback is proven, or hardware for a signed MSP contract.
- Your recurring revenue is stable and retention is strong, so repayment comes out of revenue you expect to still be there.
When a technology company should not borrow
- Debt has to be repaid on schedule whether or not the growth it funded materializes. That is exactly the risk equity does not carry.
- Pre-revenue software companies with no billing history give a revenue-based lender little to underwrite. Equity is the realistic route there.
- Concentrated revenue is fragile. If two clients are most of your ARR, losing one turns a comfortable payment into a problem.
- If churn is high or net revenue retention is well under 100 percent, you are borrowing against a base that is shrinking.
- If what the company actually needs is a strategic investor, distribution, or hiring reach, a loan does not provide it.
Best ways to use technology business loans
Software firms, IT service providers, and managed service providers borrow for a short list of reasons.
- Extending startup runway
- Hiring engineers and sales staff
- Covering cloud and infrastructure
- Product development sprints
- Bridging enterprise payment terms
- Scaling paid acquisition
Funding options for technology companies
Not every product fits a software business. These are the ones that match how technology revenue actually arrives.
Revenue-Based Financing
Payments scale with monthly recurring revenue, which suits a subscription business between raises.
Learn moreBusiness Lines of Credit
Draw for cloud costs and contractor invoices, then repay as enterprise payments clear.
Learn moreShort-Term Business Loans
Fund a development sprint or a sales hire on a fixed payback schedule.
Learn moreLong-Term Business Loans
Larger amounts over longer terms suit a build-out you plan to run for years.
Learn moreWho qualifies for technology business loans?
We underwrite the revenue your platform or service contracts already produce, not the assets on your balance sheet.
Check if you qualifyFrequently Asked Questions
Can a SaaS company get a business loan without giving up equity?
Yes. Non-dilutive funding for SaaS companies is underwritten on your recurring revenue rather than a valuation, so there's no equity, no warrants, and no board seat involved. You repay capital and keep full ownership.
What do lenders look at in a software company instead of collateral?
Your billing history, mostly. A lender wants your MRR or ARR, how many months it has billed consistently, and what share of it renews. Net revenue retention shows whether the existing base grows without new sales, and CAC payback shows whether acquisition spend comes back in a reasonable window. Customer concentration matters as much as either, because one client leaving shouldn't take the payment with it.
How does working capital for software companies handle annual contracts billed monthly?
It's designed for exactly that. An annual contract billed monthly gives a lender twelve predictable payments to underwrite against, which is stronger than lumpy project revenue. If you offer annual prepay, that cash arrives sooner but leaves later months thin, so tell our team which billing mix you actually run.
Is a technology business loan different for an MSP than for a SaaS product company?
Yes. If you run a SaaS product company you have high gross margin and low delivery cost per customer, so your recurring revenue converts to cash efficiently. An MSP carries hardware and technician labor against its monthly contracts, so margins are thinner and equipment costs are real. Both qualify, but the amount and structure that make sense for you'll differ. If you're an MSP acquiring the client base of another provider, it's worth looking at SBA loans, since acquisition is one of the uses that structure was built for.
Does deferred revenue on our balance sheet hurt our chances of funding?
It shouldn't. Deferred revenue sits on your balance sheet as a liability because you haven't delivered the service yet, which can make a growing subscription business look worse than it's. A lender who works with technology companies reads your deferred revenue as contracted future revenue and a sign of health rather than a debt problem.
Can a technology company that is not yet profitable qualify?
Often yes. Plenty of software companies run at a loss deliberately while they spend on engineering and acquisition, so being unprofitable doesn't rule you out. What matters is that your revenue is real, recurring, and growing, and that you can service the payment from what you bill today. Profitability isn't the test. Consistent revenue and reasonable retention are.
Other industries we fund
We know the cash-flow realities of 22 industries. If yours is not Technology, chances are we fund it too.
Fuel growth with technology business loans
See what your recurring revenue supports. No equity, no board seat, no dilution.