How money moves in this industry
A growing team may be paid monthly while enterprise customers pay on longer terms. For a subscription business, churn and deferred revenue can matter as much as bookings.
A practical example
An IT services firm wins a multi-site rollout and hires technicians before the first milestone invoice is paid.
This illustrates a funding need; it is not a lender eligibility claim or a recommendation to borrow.
Common reasons to explore finance
- Project mobilisation
- Hiring and payroll
- Equipment and systems
- Acquisition
- Working capital
Equipment and assets that may be financed
Asset finance depends on the lender's product, the asset, its condition and the proposed term. Examples in this industry include:
- Computer equipment
- Servers and networking
- Office fit-outs
Questions to prepare for a lender discussion
These are useful preparation questions, not a statement that any particular lender accepts this industry.
- Is revenue contracted, recurring or project based?
- How concentrated is the customer base?
- What tangible security is available?
Insurance and business continuity
Finance is one part of a business decision. This industry may also need to consider cyber, professional indemnity, business interruption cover, depending on its activities, contracts and legal obligations. Our business insurance guide explains the concepts and links to official Australian sources.