The technology sector continues to experience explosive growth, as more companies in the various contained industries sprout up every year. Many of these businesses, especially in the startup phase, need to seek out alternative finance
methods to get off the ground. Additionally, companies in the sector often have unique equipment loan needs.
This industry is likely high on the priority lists of many lenders, as Forrester recently forecast its revenues to grow 7.5 percent this year and 8.3 percent in 2013. The analysis firm further predicts the information and communications technology industry to grow just over 7 percent in revenues this year. Smart Business recently published an article explaining that software companies are met with difficulty when applying for various forms of financing. From the start, software companies have very low equipment and appliance loan requirements, as necessary manufacturing is often carried out in a virtual environment. However, this causes problems in the loan application process, as personnel costs are commonly highest. The author of the story suggests companies use as much of the traditional financing process as possible due to the costs of renting space on servers and expanding bandwidth capabilities. Past this, seeking alternative credit
for other required costs would be a sound decision.