Question 1

Is operating lease better than hire purchase for tech equipment?

Accepted Answer

Operating leases are often preferred for fast-depreciating tech equipment. You return the equipment at term end and upgrade, avoiding obsolescence risk. This also keeps the asset off your balance sheet. However, if you plan to use equipment beyond its lease term, hire purchase may offer better long-term value.

Question 2

Can I finance software along with hardware?

Accepted Answer

Some lenders will include software licences bundled with hardware, particularly for enterprise software purchased alongside servers or workstations. However, standalone software subscriptions typically aren't financeable. Hardware-software bundles are increasingly common for complete infrastructure solutions.

Question 3

What's available for SaaS and subscription businesses?

Accepted Answer

Beyond equipment finance, recurring revenue businesses can access revenue-based finance that scales with MRR/ARR. These facilities provide growth capital without dilution, using predictable subscription revenue as the basis for funding. Rates vary based on churn, growth rate, and customer concentration.

Question 4

How do tech refresh programmes work?

Accepted Answer

Tech refresh facilities provide a rolling budget for equipment replacement, often on 3-year cycles. As old equipment is returned, new equipment is added to the facility. This provides budget predictability and ensures your team always has current hardware without large capital outlay.

Technology & Software Finance

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