More than just home loans

Software Finance

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Modern technology is powered by software. Traditionally software and services represent more than 50% of the total value of network solutions.

The traditional approach of financiers has been that software is an intangible product, with no security value and do not to offer finance to purchase software.  This has led to the development of the concept of software as a service (SAAS).

SAAS has been a significant advance for many developers, software providers and end users – BUT – it irrevocably ties the end user to a package that may not evolve in the same direction as the end user.

There are still many software packages such that are not offered on the SAAS model, or provide for a purchase option.

The AFNCF Alternative

Funder                                   Major Australian Bank

Facility                                   Chattel Mortgage – client owns the asset from day 1

Minimum Amount                  $5,000

Maximum Amount                 $300,000

Maximum term                      36 months

Balloon                                  $0

Repayments                          Monthly in advance

Security                                 Charge over the software licence. Directors’ guarantees                           


The software packaged must be fully developed and commercially available. Customisation is permitted for individual clients.

Related Topic:                     Vendor Finance Facilities