Quick answer
A technology upgrade is usually funded in pieces. Hardware such as laptops, servers, POS terminals and networking gear suits equipment finance or an IT lease over two to four years. Software set-up, data migration and training have no resale value, so they're better covered by cash, an unsecured business loan or a line of credit. Ongoing subscriptions belong in the operating budget, not in a loan.
Key points
- Split the project into hardware, one-off services and ongoing subscriptions before you look for finance
- Keep loan terms shorter than the useful life of the devices, so you're not still paying for retired kit
- Implementation labour and data migration often cost more than the hardware and can't be used as security
- The $20,000 instant asset write-off is tested per asset, which suits fleets of individually cheaper devices
The hardest part of financing a tech upgrade is that most of the invoice usually isn’t hardware. Owners get a quote that looks like “new computers and a new system”, then discover the laptops are a modest slice and the rest is licences, configuration, data migration, training and a support contract. Lenders treat those parts very differently, and so should you.
This page shows how to break a technology project into pieces that each suit a different kind of funding, how to keep the term in step with the gear’s real life, and what an upgrade looks like once it’s costed properly.
What counts as a technology upgrade?
Almost every business has one coming. Common examples we hear about:
- Replacing a fleet of ageing laptops or desktops before they fail or fall out of security support
- Moving from an office server to cloud software, or the other way round
- New point-of-sale, booking or practice management systems
- Phone systems, networking, Wi-Fi and security cameras
- Specialist kit such as 3D scanners, diagnostic tools, label printers or warehouse scanners
- Cyber security work after a scare, or because a big customer now demands it
The reasons vary. Old systems slow staff down, support for an operating system ends, a client’s contract requires certain security controls, or the business has simply outgrown its software.
Three buckets: hardware, services and subscriptions
Before talking to any lender, sort every line of the quote into one of three buckets. It changes which finance fits.
| Bucket | Examples | Finance that suits it | Why |
|---|---|---|---|
| Hardware | Laptops, servers, switches, POS terminals, screens, phones | Equipment finance, IT lease, or an operating lease | It’s a physical asset the lender can identify and, in theory, recover |
| One-off services | Installation, configuration, data migration, training, custom development | Cash, an unsecured business loan or a line of credit | Nothing to repossess, so lenders rely on your cash flow instead |
| Ongoing costs | Software subscriptions, cloud hosting, support contracts | Operating budget | A recurring expense, not something to borrow for |
Some IT vendors bundle all three into one monthly “as a service” payment through a finance partner. That can be tidy, but check the exit terms closely. You may be returning the hardware while the software fees continue, or rolling into a new contract you didn’t plan for.
How do lenders look at technology?
Technology is one of the faster-depreciating assets a financier will touch. A three-year-old laptop has little resale value, and a custom-configured server even less. That shapes the offer in a few ways:
- Shorter terms. Many lenders keep IT terms to around two to four years.
- More weight on your financials. Because the security is thin, bank statements and trading history matter more than with a truck or excavator.
- Lease structures are common. A lender that owns the gear and expects it back at the end can price for its likely value.
- Caps on soft costs. Where installation or software is bundled, lenders often limit how much of the deal it can make up.
Banks fund plenty of technology for established customers, often at a sharp price, so start there if your business banking is in good order. If the bank wants security you don’t have, or can’t move before an old system gives up, non-bank equipment financiers and unsecured lenders are used to this kind of request.
Want someone to look at your quote and say which parts are fundable? Start a short enquiry. It’s free and nobody pulls your credit report for it.
Pay it off before you retire the device
The single most useful rule for technology finance: finish paying before you stop using it. If you finance laptops over five years but replace them after three, you’ll be paying for retired devices while also funding new ones. That’s how tech debt quietly stacks up.
A practical approach:
- List each device type and how long you actually keep it. Your own history is the best guide.
- Set the finance term at or below that number.
- If you prefer a fixed refresh cycle, look at a lease that ends when you’d upgrade anyway.
- Compare total dollars paid across the term for each option, not just the monthly figure. Our business loan repayment calculator helps here.
For a wider look at the trade-offs, see our leasing vs buying equipment comparison.
Tax, security and the costs owners forget
The instant asset write-off. According to the ATO, eligible small businesses keep the $20,000 write-off limit beyond 30 June 2026. The limit is applied asset by asset, so a fleet of laptops each costing well under $20,000 can behave very differently, for tax, from one large server. Your accountant can confirm how this interacts with leasing versus buying, because who owns the asset decides who claims it.
Cyber security. business.gov.au recommends basic steps such as regular backups, software updates and multi-factor authentication. Build those into the project rather than tacking them on later; a new system without backups is a risk to the business and, increasingly, a sticking point with insurers and large customers.
Hidden line items. Budget for:
- Staff time lost during changeover, and possibly overtime or a temporary helper
- Data cleansing before migration, which is often slower than expected
- Licences charged per user that grow as you hire
- Secure disposal of old devices that hold customer data
- A contingency of 10 to 20 per cent for the things nobody scoped
Sizing the amount
Work it out in this order:
- Hardware total from quotes, ex GST if you’re registered and claim credits.
- One-off services from the implementer’s statement of work. Ask for a fixed price where possible.
- Contingency on the services, since that’s where overruns happen.
- Cash you can contribute while keeping at least a month or two of expenses in reserve.
- Monthly impact: new repayments plus new subscriptions, minus any old costs you’ll cancel (server maintenance, old licences, the backup service you no longer need).
If the monthly number makes you uneasy, phase the project. Replacing devices this year and the core system next year is common, and lenders are comfortable funding a well-planned staged upgrade.
Worked example: an engineering consultancy modernises
An illustration only. A 12-person civil engineering consultancy in Brisbane runs on five-year-old workstations and an in-office server that’s out of warranty. A major client’s new contract requires multi-factor authentication and tested backups.
| Item | Bucket | Cost |
|---|---|---|
| 12 high-spec laptops with docks and screens | Hardware | $54k |
| Networking, firewall and Wi-Fi | Hardware | $11k |
| Migration from server to cloud, set-up and training | Services | $21k |
| Cyber security hardening and backup set-up | Services | $6k |
| Contingency on services | Services | $4k |
| One-off total | $96k |
New cloud and design software subscriptions add about $2,400 a month, partly offset by $900 a month in server support and old licences that stop.
The partners take a three-year lease on the $65k of hardware, timed to match their usual laptop refresh. A $31k unsecured business loan over two years covers the migration, security work and contingency. Subscriptions go into the monthly budget. The partners keep the firm’s cash reserve intact for wages through the slower January period.
The lender was comfortable because two years of steady fee income easily covered both repayments, and the client contract gave a clear reason for the spend.
Let’s look at your upgrade
Old systems rarely fail at a convenient moment, and a well-structured upgrade is far cheaper than an emergency one. Whether you’re holding a signed quote or a back-of-envelope budget, we can tell you which parts are fundable and how.
The enquiry is a one-minute job, and asking puts no mark on your credit history. Your details aren’t fired off to every financier in the country either: a person on our team reads it and rings you to discuss your project. Share the real quote figures and your genuine monthly turnover, since straight numbers let us land on a workable option at the first attempt rather than the third.
Frequently asked questions
Can I get equipment finance for computers and IT?
Yes. Many equipment financiers and banks fund laptops, desktops, servers, networking gear, phone systems and POS hardware. Because tech loses value quickly, expect shorter terms than for vehicles or machinery, and lenders may prefer a lease over a chattel mortgage.
Can I finance software?
Software licences and subscriptions are hard to use as security, so equipment lenders often exclude them or cap how much of a deal they can make up. Owners usually pay subscriptions from cash flow and cover one-off implementation costs with an unsecured loan, a line of credit or cash.
Should I lease or buy business technology?
Leasing suits businesses that want to refresh devices every few years and keep payments predictable. Buying, with cash or a chattel mortgage, usually costs less overall if you'll keep the gear until it wears out. Our leasing vs buying comparison walks through both.
Does the instant asset write-off apply to laptops?
It can. Eligible small businesses can immediately deduct assets costing less than $20,000 each, and the ATO says the threshold continues from 1 July 2026. Because the test applies to each asset, a batch of laptops priced individually under the limit may qualify. Ask your accountant how it applies to your purchase.
How long should a technology loan run?
As a rule of thumb, no longer than you expect to use the equipment. Laptops and tablets are often replaced within three years, while servers and networking gear may last longer. Paying off a device after it's been retired wastes money that should be funding its replacement.