Technology Business Loans and Growth Capital
Technology companies are the most growth-driven businesses that come to us. 57.1% of the technology services businesses in our applicant base said they were seeking funding for a business expansion — the highest share of any industry we have looked at, against 29.8% across the rest.
They are also past the hardest gate. 78.6% have been trading more than a year, against 63% overall, which puts most of this industry beyond the point where lenders stop looking and into the range where the cheaper products open up.
That combination describes a specific kind of borrower: not a startup looking for runway, but an established services business borrowing to take on more work.
What do technology businesses borrow for?
Expansion, more than any other industry, and almost never equipment.
| Use of funds | Technology services | All industries |
|---|---|---|
| Business expansion | 57.1% | 29.8% |
| Equipment purchase | 17.9% | 25.5% |
Self-reported by more than 1,000 businesses that have used TopFunders.ai. Percentages for smaller industries rest on correspondingly smaller samples, so treat the direction as meaningful and the precise figure as indicative.
The reason is structural. A technology services business grows by hiring, and hiring costs money months before the contract it was hired for pays out. There is no machine to buy and no asset to secure — the spend is salaries, contractors, tooling and the working capital that carries a team between invoices.
Why it matters for your application: unsecured borrowing is underwritten on deposits and trading history rather than on collateral. This industry generally has strong versions of both, which is why the products open to it are often cheaper than a founder expects.
What being matched means
Businesses that complete our application are matched with a funding partner.
To be precise about what that means: matched is an introduction to the partner best positioned for that profile. It is not an approval and not a funding decision. Every partner underwrites independently and decides for itself.
Who this covers
IT services and managed service providers are the most financeable shape in this sector. Recurring monthly contracts produce exactly the predictable deposits unsecured lenders price best, and the growth spend — engineers, tooling, a new client's onboarding — lands ahead of the revenue it produces.
Software development agencies run on project milestones, which means the deposits are lumpier and the gap between doing the work and being paid for it is the financing problem. Invoice financing fits that directly; a line of credit covers the payroll underneath it.
Cybersecurity firms carry certifications, tooling licences and specialist salaries, and often need capital in place before a contract is signed rather than after — the capability has to exist to win the work.
Data and AI consultancies are compute-heavy in a way the rest of the sector is not. Infrastructure spend is a real operating cost, it scales with the engagement, and it usually arrives before the client's first payment does.
Web and digital agencies sit closest to retail rhythms: many small clients, monthly retainers alongside project work, and marketing spend that has to run continuously. A drawable facility suits that better than a fixed term payment.
Which products fit a technology business?
A line of credit fits most technology businesses, because hiring and tooling costs land months before the contract they were for pays out. Invoice financing covers work already billed on net terms, and a term loan suits a defined expansion cost.
| Product | Time to funding | Fits when |
|---|---|---|
| Online line of credit | 1 to 3 business days | Payroll between milestones, hiring ahead of a contract |
| Online term loan | 24 to 48 hours | A defined expansion cost and steady deposits |
| Invoice financing | 24 to 72 hours | You bill business clients on net terms |
| SBA 7(a) loan | 30 to 90 days | A major expansion and you can wait for the cheapest money |
| Equipment financing | Days, varies with the vendor | Hardware, infrastructure or lab kit with resale value |
| Merchant cash advance | Same day to 24 hours | Urgent, and other options are closed |
Funding times are measured after approval, not from when you start the application. The clock only starts once the lender has a complete file.
Because 78.6% of this industry is past its first year, the SBA and bank rows are genuinely available to much of this audience rather than aspirational. A profitable agency with two years of trading that reaches for a short-term product is usually buying speed it does not need.
What qualifies a technology business?
Technology businesses are underwritten on deposit consistency and client concentration rather than on assets, which is why a services company with no equipment can still qualify comfortably. Recurring contracts read materially stronger than milestone payments at the same turnover.
| What a lender checks | What helps |
|---|---|
| Time in business | 6 months is the common minimum, 2+ years opens bank and SBA |
| Deposit consistency | Recurring contracts read stronger than milestone lumps |
| Client concentration | One client covering most of revenue is one point of failure |
| Existing obligations | Fewer active advances means more available capacity |
| Contracts in hand | Signed retainers are evidence of future revenue |
Client concentration is the specific thing that narrows the field here more than in other industries. A consultancy with one large account can look excellent on revenue and still be underwritten cautiously, because losing that account changes everything at once. A spread of recurring contracts reads materially better at the same turnover.
What does growth capital cost?
Bank and SBA 7(a) loans run cheapest for businesses with the trading history to qualify — which, in this industry, is most of them. Online term loans typically run 15% to 45% APR. Merchant cash advances price in factor rates rather than interest and can work out equivalent to APRs in the 40% to 350% range, and are the most expensive money on this page.
Expansion borrowing has a particular risk worth naming: a fixed monthly payment set against revenue you have not won yet does not wait if the contract slips. If the growth is staged — a hire now, another when the account lands — a line of credit you draw into is a safer structure than a lump you are already repaying.
Fast money earns its cost when waiting loses the opportunity: an engineer with a competing offer, a contract that starts in two weeks, infrastructure a client needs live. It is a poor trade for a hire you could make next month.
What happens when you apply through TopFunders
One short application, about two minutes. We compare what you enter against what each of our 30+ vetted funding partners will actually consider, and introduce you to the single partner best positioned for a business like yours.
- Matching uses only the details you enter. There is no credit check of any kind at this stage, so getting matched does not affect your credit score.
- We never ask for your Social Security number or Tax ID to match you.
- One partner receives your details, not a dozen. You are not fielding calls for a week.
TopFunders is not a lender and not a loan broker. We do not originate, underwrite, price or fund loans, and we make no credit decisions. The matched funding partner reviews your application, sets your amount, rate and terms, and decides whether to fund you.
Frequently asked questions
Can a software or IT company get a business loan?
Yes, and this industry qualifies more easily than most. 78.6% of technology services businesses in our applicant base have been trading more than a year, against 63% overall — which is past the point where most online lenders stop looking and, at two years, inside bank and SBA territory.
How do I fund hiring before the contract pays?
A line of credit generally fits better than a term loan, because you draw as salaries land and repay when the client does. A fixed monthly payment set against revenue you have not won yet does not wait if the contract slips.
Can I get funding without assets or collateral?
Yes. Unsecured products are underwritten on deposits, trading history and existing obligations rather than on collateral, which is why a services business with no equipment can still qualify. Strong recurring deposits do more for you than assets would.
Does having one large client hurt my application?
It can. Concentration is a real risk factor: a business can look strong on revenue and still be underwritten cautiously if losing one account would change everything. A spread of recurring contracts reads better at the same turnover.
How does invoice financing work for an agency?
You advance against invoices already issued to business clients, rather than borrowing against a forecast. It suits project work billed on net terms, where the work is done and the money is simply not there yet.
Does checking my options hurt my credit?
No. Matching uses only the details you enter, so there is no inquiry on your credit file and no effect on your score. A credit inquiry happens later, if and when you make a formal application with the matched partner, and you consent to that separately.