IT companies face a fundamental issue about bank financing when they try to get lines of credit: Banks want to lend on collateral. IT companies often have very little in the way of “hard” assets—their assets are people. Even if an IT company gets a bank line, that line is unlikely to grow based on the company’s growth.
Many IT companies outsource portions of software development or technical support services, often to developing countries, where subcontractors typically have no access to capital. In these cases, we can help increase working capital and the stability of the supply chain with our Supply Chain Payment Program.