Software finance
Compare Software
Finance
What we do
Compare Advantage is a free comparison service. Tell us about the system you are buying and what the project will cost, and our partner, FCA-authorised broker Halo Corporate Finance, checks your enquiry against the 130+ lenders on its panel. Compare it with the vendor’s own payment plan before you sign.
- Licences, multi-year contracts and implementation
- Software and hardware on one agreement
- Compared with the vendor’s own finance
Prefer to talk? Call 0330 057 7175
- 130+ lendersOn our partner’s panel
- £5k to £1mLoans and asset finance
- One enquiryInstead of one per lender
- FCA-authorised partnerHalo Corporate Finance
- Free to enquireNo obligation to apply
Compare before you apply
A big system is a big project. Fund all of it.
New business software rarely costs just the licence. Implementation, data migration, training and often new hardware can add up to more than the software itself, and they all fall due around go-live. Vendors know this, and many offer a payment plan. Comparing that plan with the panel, on the whole project and not only the licence, shows what spreading the cost really costs.
- 1
Tell us once
Two minutes on the form: how much, what it is for and a few details about the business.
- 2
The panel is checked
Halo Corporate Finance matches your enquiry against the 130+ lenders on its panel.
- 3
You choose
Halo talks you through the options that fit. You decide whether to apply. There is no obligation.
What to compare
- The vendor’s payment plan against the panel. Software vendors often offer to spread the cost. It is convenient, but it is one offer, and the price of the plan is not always obvious.
- What is included: licences, implementation, training, data migration and any hardware. Funding the whole project avoids a gap later.
- The term against the contract. Finance should not run longer than your right to use the software, or longer than you expect to use it.
- What happens if the project slips or the software is not delivered as promised. Check when payments start and how the lender pays the supplier.
- Personal guarantees, which are more common for software than for hard assets, because there is little to recover if payments stop.
What lenders will fund
What can be financed, and what cannot
Software finance works where there is a large cost due up front. If the vendor already lets you pay monthly, there is usually nothing to finance.
Usually fundable
- Perpetual licences bought up front
- Multi-year licence or subscription contracts paid in advance
- Implementation, configuration and data migration
- Training and go-live support
- Servers, devices and networking bought with the software
Usually not
- Pay-monthly subscriptions, which already spread the cost
- Software for personal rather than business use
- Projects with no signed contract or supplier invoice
- In-house development with no third-party supplier
- Very small one-off purchases
Common projects
The systems businesses finance
ERP and accounts
Finance, stock, production and supply chain systems that run the whole business.
CRM and sales
Customer, sales and marketing platforms, often with a large set-up project.
Practice management
Systems for dental, veterinary, legal, accountancy and medical practices.
Industry software
CAD, CAM and design packages, often bought with the machines they drive.
Security and infrastructure
Cyber security, backup and network management, with the hardware behind them.
Print and document systems
Document management and print software, alongside print kit through our managed print comparison.
The lender’s view
Why software is treated differently from a van
When a lender funds a van or a machine, the asset is its safety net. If payments stop, it can collect the vehicle and sell it. Software does not work like that. A licence usually cannot be transferred, and a half-finished implementation has no resale value at all.
So a software lender is mostly lending against your business. It will look harder at your accounts, your bank statements and your track record, and it is more likely to ask for a personal guarantee or to keep the term short.
Two things help. Including hardware in the same agreement gives the lender something it can recover. And an established, well-known supplier reassures the lender that the project will be delivered and the software will be supported.
Tax
How software is treated for tax
The answer depends on whether your business is a company and how the software is accounted for. A general guide; your accountant will confirm.
Sole traders and partnerships
Capital spending on software, including the right to use it, is treated as plant and machinery, so it can usually qualify for capital allowances such as the Annual Investment Allowance. Downloaded software counts as well as software on a disk.
Companies
For companies, the intangible assets rules usually take priority, so software is generally relieved in line with how it is treated in the accounts. There are exceptions, for example where software is accounted for as part of the hardware it runs on, or where the company elects out.
Subscriptions and leases
Pay-monthly subscriptions and most lease rentals are usually treated as running costs and deducted as they are paid. Your accountant can confirm the treatment for your contract.
Before you enquire
What to have ready
- The supplier’s quote or draft contract, split into licences, services and hardware
- The licence or subscription term
- The project plan, and when payments fall due
- Your latest accounts and recent bank statements
- Any payment plan the vendor has offered
- Details of existing finance and leases
What is software finance?
Finance that spreads the cost of business software over time, instead of paying for licences and implementation up front. It can be set up as a loan, a lease or a structured payment plan, depending on the lender and what is being funded.
Can I finance a software subscription?
Pay-monthly subscriptions already spread the cost, so there is usually nothing to finance. Multi-year contracts that the vendor wants paid in advance can often be financed, so you pay monthly while the vendor is paid up front.
Can I finance implementation and training?
Often, yes, as part of the same agreement as the licences. Implementation is frequently the larger part of a big software project, so it is worth including.
Is software finance harder to get than equipment finance?
It can be. Software is a soft asset: a lender cannot easily recover and resell it if payments stop. So lenders lean more on the strength of your business, and may ask for a personal guarantee or a shorter term.
Can I finance software and hardware together?
Yes. Combining them on one agreement is common, and the hardware can help the lender, because it has a resale value. See equipment finance for IT kit on its own.
Should I use the software vendor’s finance?
Compare it first. Vendor payment plans are convenient and sometimes subsidised, but the cost is not always clear. A quote from the panel on the same project gives you something to compare against.
Can I claim tax relief on financed software?
Usually, but the route depends on your business. For sole traders and partnerships, capital software is treated as plant and machinery. For companies, the intangible assets rules usually apply first. Ask your accountant how your contract will be treated.
What do lenders want for software finance?
The supplier’s quote or contract, a description of the project, your latest accounts and bank statements, and details of any existing finance. For larger projects, they may also want to know the supplier is established.
How long can software finance run?
Usually shorter than for hard assets, and no longer than your licence or contract. Many businesses match it to the expected life of the system before the next upgrade.
Can a new business get software finance?
It is harder, because the lender has little to recover and little trading history to judge. A personal guarantee, a deposit or combining it with hardware can help. See new business loans.
Sources
- HMRC Capital Allowances Manual: computer software (CA23410)
- HMRC Corporate Intangibles Research and Development Manual (CIRD10000)
- GOV.UK: Annual Investment Allowance
- Halo Corporate Finance: products
- FCA register: Halo Corporate Finance Ltd (FRN 726655)
Written by the Compare Advantage team, Chorley. Facts checked against the sources above on 4 November 2026. This page is general information, not financial advice.
Compare Advantage Ltd (FRN 1028452, company no. 14289362) is an Introducer Appointed Representative of Halo Corporate Finance Ltd (FRN 726655). We introduce business finance enquiries to Halo. We are not a lender and do not give financial advice. If you take out finance, the lender may pay commission to Halo Corporate Finance, and Halo may pay us a fee for the introduction. Finance is subject to status and is available to UK businesses only.