Software Financing
Software financing offers some particular challenges in the
government marketplace. Almost all government leases can be terminated for
non-appropriation of funds, whether federal, state or local, and the
conventional wisdom is that, in the event of a termination, the lessor will at
least get his collateral back for remarketing. Though this is true with
equipment and real property, a software license is usually not remarketable
after termination. This requires a different approach in financing which
traditional lenders will not provide.
SFC is one of the few companies that can finance large, software only transactions in federal, state and local jurisdictions. We can also finance the consulting and implementation associated with installing a complex software system. All financing is non-recourse, and the risks for non-appropriation will be absorbed by SFC.
