Technology Finance | Hardware | Software(SIC 46510)

Mark Abrams

Mark heads up the trade finance offering at TFG where his team focuses on bringing in alternative structured finance to international trading companies.

Access trade, receivables and supply chain finance

We assist companies to access trade and receivables finance through our relationships with 270+ banks, funds and alternative finance houses.

Get started

We work with various types of companies in a number of industries who own or have the requirement to purchase technology related products. We assist in providing finance for these products or generating a financing package that meets a borrower’s needs.

Hardware and Software Finance

Trade Finance Global has extensive expertise in various types and structures of finance and the clients we work with can be assured that we are well connected within this part of the market; knowing the right funder that is able to assist. Tech finance is not a standard asset class as valuation is very difficult. Knowing the worth of a specialised asset can prove very difficult and so an expert sometimes has to be appointed.

We work with funders who have a deep understanding of the tech market and can look at a situation in a very specialized way that is not usually available when working with mainstream lenders. It is important to both understand the client and the asset, with the aim of structuring a solution that is appropriate to the needs of the business.

Hardware, Software and Service finance includes:

Hardware:

Smart phones, VOIP terminals
Laptops, servers and desktops
PDAs, Routers, Switches, UPS
Digital cameras, LCD displays/signage
Scanners, monitors and printers
Epos, Tablets
Routers, Switches, UPS
LCD, Digital Cameras, displays/signage, interactive boards
Cabling

Software:

All software types, which include:

Term
Perpetual
Subscription which includes variable payment
Specialist providers of software
Hosted

Services:

A hundred percent service only agreements including the following:

Support contracts
Managed service contracts
Installations, training and consultancy
Designing of websites
E-commerce focused platforms

Finance Requirements

You are looking for a tech finance facility
You have an established company
The company is creditworthy

How the transaction works

When a company works with technology, it is sometimes hard to put a value on the underlying product that they are working with – this is always hardware.

There are times in the life-cycle of a business where it would be suitable to release cash against assets. Technology products are by their very nature difficult to derive a value from and funders have historically struggled with value. Specialists in this sector can now provide clarity in a previously opaque market

What is the SIC Code for Technology Finance ?

SIC Code

46510

Wholesale of computers, computer peripheral equipment and software

Other SIC Codes that could also be used are:

62020 Information technology consultancy activities
62090 Other information technology service activities

Case Study

Professional Services, Cambridge

The company were expanding and wanted to buy some heavy-duty technology systems. A standard financier would not fund the product and so they turned to a specialist who was able to structure a facility to suit their needs. This allowed growth, which did not create a hugely negative impact on the business. This also allowed employees to feel valued and be working with the most up to date technology systems, so that they could quickly and efficiently carry out their roles.