Quick answer
Technology finance funds computers, laptops, servers, networking, point-of-sale systems, phones and sometimes software and installation, spreading the cost over a term that matches how quickly the technology ages. Because tech loses value fast, terms are usually shorter than for vehicles or machinery, and leasing with an upgrade option is popular. It keeps cash free while the business stays current.
Key points
- Covers hardware, POS, phones, networks and some software.
- Terms match how fast technology ages.
- Leasing with upgrade options is common.
- Installation and setup can sometimes be bundled.
- Also called
- IT finance, computer finance, POS finance
- Assets
- Computers, servers, POS, phones, networks
- Structures
- Lease, chattel mortgage, loan
- Term
- Usually shorter than other assets
Why finance technology?
Technology is essential and it ages quickly. A laptop fleet, a new POS system across several sites, or a server and network upgrade can cost a lot upfront, and in three to five years you’ll need to do it again. Financing it means the cost is spread over the period you actually use it.
What can be financed?
| Category | Examples |
|---|---|
| Computing | Laptops, desktops, monitors, tablets |
| Infrastructure | Servers, storage, networking, Wi-Fi |
| Point of sale | Terminals, scanners, printers, kitchen screens |
| Communications | Phone systems, mobiles, video conferencing |
| Specialist | Medical imaging software bundles, design workstations |
Lease or buy?
- Lease if you want to refresh gear every few years, with an upgrade option built in.
- Buy (chattel mortgage or loan) if you’ll run the gear until it dies.
Tax treatment differs between the two; check with your accountant.
Keep the term short
A useful rule of thumb is to ask how long the gear will genuinely be fit for purpose in your business, then pick a term a little shorter than that.
Don’t finance technology over a longer term than you’ll use it. Repaying for a laptop that’s already been replaced is a bad deal. Match the term to the realistic life of the equipment.
Related entries: equipment finance, fit-out finance and professional practice loans. Have a quote? Send it through.
An illustrative example
A restaurant group replaces ageing POS terminals and kitchen screens across three venues. A lease spreads the cost over three years, with the option to upgrade at the end. (Illustrative only.)
What else is technology finance called?
Lenders, accountants and search engines don’t all use the same words. You’ll also see this entry described as IT finance, Computer finance and POS finance. In our A–Z index every one of those names points back to this page, so whichever term you searched, you’ve landed on the same thing. If a lender uses a name you don’t recognise, ask them to describe how the security, the term and the repayments work; that tells you far more than the label.
Where does it sit in the directory?
This entry lives on the trade, stock and asset shelf. It’s most often used for equipment and vehicles, and the security usually involved is whatever suits the deal, from nothing at all to property. It is one of the quicker entries to put in place when the paperwork is ready. Its closest neighbours are:
- Equipment finance — Spread the cost of machines, tools and tech over their working life.
- Business vehicle finance — Cars, utes and vans for the business, with the vehicle as security.
- Truck finance — Rigid trucks, prime movers, tippers and trailers — new or used.
- Chattel mortgage — You own the asset from day one; the lender holds a security interest over it.
To compare all of them at once, filter the Loan Finder by purpose and security.
Common mistakes to avoid
- Starting with the product instead of the purpose. Decide exactly what the money must achieve, then choose the structure that fits it.
- Not comparing secured and unsecured options. The same need can often be met either way; the right answer depends on amount, credit and timing.
- Under-estimating the total cost. Ask for the full amount repayable in dollars, including every fee, before you compare offers.
- Applying everywhere at once. Multiple applications can leave a trail of credit enquiries. One well-prepared enquiry is better.
- Leaving it until the last minute. Facilities are easier to arrange while trading is strong, not in the middle of a crunch.
What should I ask before signing up for technology finance?
A short list of questions saves a lot of regret. Put these to any lender or specialist before you commit:
- Which structures did you consider for me? A good specialist explains why one option beats the others for your situation.
- What’s the total cost in dollars? Compare like with like across secured and unsecured offers.
- What security or guarantees are needed? Know exactly what’s on the line before you sign.
- How are repayments timed? Match frequency to how money comes into your business.
- What happens if things change? Ask about early repayment, top-ups and hardship options.
If an answer is vague, ask again or ask for it in writing. Good lenders are happy to explain their terms clearly.
Stay current without draining cash
If your business needs new technology, financing can keep cash available for everything else. Enquiring involves no credit check and your details stay with one specialist.
Please tell us what you’re buying, the quote and how long you expect to use it. Accurate details mean the right term. Start your enquiry.
Frequently asked questions
Can software be financed?
Sometimes, particularly when bundled with hardware or as part of a larger roll-out. Pure software subscriptions are usually paid as operating costs.
Should I lease or buy technology?
Leasing suits businesses that want to upgrade regularly. Buying suits gear you'll use for its whole life. Ask your accountant about tax treatment.
Can installation costs be included?
Often, as part of a package with the hardware.
Is technology finance unsecured?
It's often secured by the equipment, though resale value is low, so lenders also look closely at your trading.