IT Services Business Loans

From hiring developers to bridging project payment gaps, fund your IT business with confidence. Explore business funding through Fundably. Eligibility criteria apply.

Typical Range

£5k – £300k

Average Loan

£50k

for it services

Decision Speed

24–48 hrs

for unsecured loans

Eligibility requirements

Minimum 6 months trading history
Registered UK business (sole trader, partnership, or limited company)
Signed client contracts or purchase orders for invoice finance eligibility
Personal guarantee typically required from the business owner or directors

Loan types available

Unsecured Business Loan

Rate: 7.4% – 27.9% APR
Term: 1 – 5 years
Security: No security required
Best for: Hiring developers ahead of a confirmed project, hardware, or software licensing costs

Invoice Finance

Rate: Discount rate 1.5% – 4% + service fee 0.2% – 3% of turnover
Term: Rolling facility, reviewed annually
Security: Secured against outstanding invoices
Best for: Firms billing corporate clients on 30 to 60 day terms who need cash flow released sooner

Revolving Credit Facility

Rate: 8.9% – 24.9% APR on funds drawn
Term: 12 – 24 month facility, renewable
Security: No fixed security, personal guarantee usually required
Best for: Covering payroll during the gap between starting project work and reaching the next milestone payment

Representative example

Borrow £50,000 over 36 months at 9.9% APR (fixed). Monthly repayment: ~£1,611. Rates depend on your circumstances and the type of loan.

Common challenges

Project work is often billed on delivery or against milestones, so payroll and overheads must be covered before revenue lands
The business holds few tangible assets, since its main value is in people and code rather than equipment or property
Revenue can be concentrated in a small number of client contracts, particularly for smaller firms
Skills and technology requirements change quickly, requiring ongoing investment in training and tooling to stay competitive

Bad credit?

Some specialist lenders consider it services businesses with imperfect credit. You may need a personal guarantee or higher rate, but options may be available. Fundably may use a soft credit check for matching, which does not affect your credit score. A hard check may happen if you choose to proceed with a lender.

Frequently asked questions

How can I fund payroll while waiting for a project milestone payment?

A revolving credit facility or an unsecured business loan can both be used to cover salaries and overheads while development work is under way, ahead of the next milestone or delivery payment. A revolving facility is generally more flexible if your project timelines vary, since you only draw and pay interest on what you actually need at any given time.

Does invoice finance work for a software or IT services business?

Yes, invoice finance is well suited to firms billing corporate clients on standard 30 to 60 day payment terms, releasing a percentage of the invoice value soon after it is raised rather than waiting for the full term. It is particularly useful for firms with retained or recurring corporate contracts, since a consistent invoicing pattern makes the facility easier for a lender to size and manage.

Can I get finance without offering property as security?

Yes, most IT services finance is unsecured, since the sector typically has few physical assets to secure a loan against. Lenders instead focus on your trading history, contract pipeline, and recurring revenue, for example from retainer or support contracts, when assessing how much they are willing to lend. Lendus can compare unsecured options across lenders who specialise in assessing service businesses on this basis.

Will client concentration affect my ability to borrow?

Lenders do look at how much of your revenue comes from a small number of clients, since losing a major contract has a bigger impact on a firm reliant on just a few accounts. A broader client base or a mix of project and recurring retainer income both support a stronger application, though concentration alone does not rule out finance.

Equipment finance for it services businesses

Buying a specific machine or vehicle is usually cheaper than a general business loan, because the asset itself is the security. These are the items it services businesses most often fund, with the price range we see quoted in the UK.

Equipment	Typical price range	Finance page
Server Rack	£2k to £30k	Server Rack finance
Laptop Fleet	£5k to £250k	Laptop Fleet finance
Access Control System	£1k to £50k	Access Control System finance
3D Scanner	£3k to £80k	3D Scanner finance
Alarm System	£800 to £30k	Alarm System finance
Audio Visual Equipment	£3k to £200k	Audio Visual Equipment finance
AV Equipment	£2k to £150k	AV Equipment finance
Backup Appliance	£3k to £80k	Backup Appliance finance
Barcode Scanner	£1k to £40k	Barcode Scanner finance
Brewery Equipment	£10k to £500k	Brewery Equipment finance
Broadcast Equipment	£5k to £200k	Broadcast Equipment finance
Camera Equipment	£2k to £80k	Camera Equipment finance

Browse all equipment finance pages

Guides and resources

How to Get a Business Loan Business Loan Eligibility Secured vs Unsecured Best Business Loans UK iwoca Review Funding Circle Review

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Check Eligibility →

For UK limited companies with at least 3 months’ trading and monthly revenue.