Business funding for IT companies and managed service providers
IT companies and MSPs often front the cost of hardware and software licensing for a project, staff a team to deliver it, and then wait weeks or months for a corporate or government client's accounts payable department to cut a cheque. The gap between spending and collecting is where most funding needs come from.
- One application, several lenders
- No credit pull to see your options
- No fee to you, ever
Common funding needs
- Buying hardware or licences for a client project before billing
- Making payroll for technicians while an enterprise invoice is outstanding
- Bridging the gap on a large managed-services contract during onboarding
- Financing office and lab equipment as the company grows
What usually fits
Products that usually fit
- Invoice factoring for outstanding invoices to corporate or government clients on slow payment terms.
- Line of credit for recurring payroll and licensing costs between billing cycles.
- Equipment financing for servers, workstations and lab equipment.
- Term loan for a planned expansion or acquisition.
Compare term loans, lines of credit, cash advances and equipment financing side by side →
Illustrative example
A worked example
An MSP has $70,000 billed to a mid-size client on 60-day terms after completing a network upgrade. With factoring at an illustrative 88% advance, it receives about $61,600 within days. At an illustrative 3% fee for the period outstanding, the fee comes to roughly $2,100, with the rest paid when the client settles.
Illustrative only: the advance rate and fee depend on the client's payment history and the invoice size.
Illustrative example only, not an offer or a quote. Rates, fees and terms are set by each lender and depend on your business. Fees are not included unless stated.
Underwriting
What lenders look at
- Who your clients are (enterprise, government, SMB) and their typical payment terms
- Recurring managed-services revenue versus one-off project billing
- Software and hardware costs fronted per project
- Monthly deposits and existing debt
- Owner credit and time in business
Honestly
Who this is not for
- A company billing mostly small SMB clients who pay at time of invoice: factoring adds cost without solving a real timing problem
- Financing a project that has not been contracted yet
- Borrowing short-term, expensive money to cover a fixed-price project that was underbid
If borrowing does not make sense, we will say so.
Are you a match?
Lender network minimums
Close but not quite there? Apply anyway and we will tell you honestly what is possible.
*Best available terms from lenders in our network. Every lender sets its own criteria; approval, amount and funding time are decided by the lender and not guaranteed.
| Time in business | 1 year+ |
|---|---|
| Monthly bank deposits | $20,000+ |
| Credit score | 500+ |
| Bank account | Business |
| Fee to you | $0 |
| Credit pull to start | None |
FAQ
IT & managed service providers funding questions
Can factoring work with government clients?
Often yes, though government accounts payable can be slower and some factoring companies specialise in it. Tell us who the client is.
Do you finance software licensing costs directly?
Not as its own product, but a line of credit or the proceeds from factoring can be used for licensing, hardware or any other business cost.
Can I finance servers and lab equipment?
Yes, through equipment financing, usually with the equipment securing the loan.
What if most of our revenue is recurring MRR, not project invoices?
A line of credit or working capital usually fits recurring managed-services revenue better than factoring, which is built around discrete invoices.
Guides
Guides for it & managed service providers
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