Technology Business Funding
Revenue-based financing, working capital, and SBA loans for SaaS, software, and IT companies. Get matched with tech-friendly lenders in minutes.
Technology and SaaS companies invest ahead of revenue through hiring, infrastructure, and go-to-market while income arrives as recurring subscriptions. Revenue-based financing scales repayment to monthly recurring revenue, and lines of credit fund growth without diluting ownership.
What Technology businesses fund
- Talent acquisition
- Infrastructure
- Marketing
- Product development
Seasonal funding patterns
SaaS businesses often access revenue-based financing aligned to MRR growth milestones.
Recommended funding for Technology businesses
- Revenue-Based Financing — Revenue-based financing provides capital in exchange for a fixed percentage of future monthly revenue until a set repayment cap is reached.
- SBA Loan — SBA 7(a) and 504 loans are government-backed programs offering some of the lowest rates and longest terms available for qualifying small businesses.
- Business Line of Credit — A revolving business line of credit lets you draw funds as needed up to a set limit and only pay interest on what you use.
Frequently asked questions
What is revenue-based financing and is it right for a SaaS company?
Revenue-based financing (RBF) provides a lump sum upfront in exchange for a percentage of your monthly revenue until a predetermined repayment cap is reached — typically 1.3x to 2x the advance amount. It is particularly well-suited for SaaS businesses with predictable MRR because repayment scales with your revenue, there is no fixed payment, and there is no equity dilution. Approval is often based on your ARR and MRR rather than traditional credit criteria.
Can a bootstrapped software company get business funding without venture capital?
Yes. Revenue-based financing, working capital loans, and SBA loans are all available to bootstrapped technology companies that generate consistent revenue. Many lenders in the LendWorks Connect network evaluate your recurring revenue and bank deposit history rather than requiring venture backing or institutional investors.
What funding is available for IT services and managed service providers?
IT services companies and MSPs can access working capital loans for operating expenses, lines of credit for equipment purchasing, invoice factoring on B2B service invoices, and term loans for acquisitions. MSPs with recurring managed services contracts often qualify for attractive terms because of the predictable revenue those contracts represent.
Can tech companies use funding to hire engineers or development staff?
Yes. Working capital loans and lines of credit have no use-of-proceeds restrictions and can be applied to payroll, signing bonuses, contractor fees, or any other operating expense. Revenue-based financing is also commonly used to fund hiring ahead of a product launch or new customer cohort.
Are SBA loans available for technology businesses?
SBA 7(a) loans are available to technology businesses that meet standard eligibility requirements — U.S.-based, for-profit, meeting SBA size standards for the tech industry. They are commonly used for equipment acquisition, office space buildout, and acquisitions of other technology firms. SBA loans offer long terms and competitive rates but require more documentation than alternative lenders.
How do lenders evaluate a technology company with lumpy revenue?
Alternative lenders and revenue-based financing providers often look at MRR, ARR, and monthly bank deposits over 3–6 months rather than calendar-month comparisons. If your revenue is generally trending up even if individual months vary, many lenders will take a holistic view. Providing context on your customer count, churn rate, and pipeline can also help.
