Industry
Cover hardware, licenses and payroll while clients pay on net terms.
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IT consulting is on the commonly eligible list on our eligible industries page: "Legal, accounting, engineering, architectural and IT consulting." Most IT consultancies and managed service providers fall under NAICS 5415, Computer Systems Design and Related Services.
The Census Bureau's 2022 County Business Patterns count 145,211 establishments in NAICS 5415 nationwide, employing 2,126,573 people, including 68,038 custom programming shops, 58,312 computer systems design firms and 6,872 computer facilities management firms. South Florida had 1,602 in Miami-Dade and 1,316 in Broward.
One distinction: telecommunications carriers are on the typically restricted list on the bank-style tier. An IT firm that resells connectivity as part of a managed service is reviewed on its main line of business, so describe it accurately on the application.
| Revenue model | How it pays | The gap |
|---|---|---|
| Managed services (monthly contracts) | Steady monthly billing, usually invoiced in advance or on net terms | Onboarding a new client costs labor and tooling before the first invoice is paid |
| Projects (migrations, deployments, builds) | Milestone or completion billing, often net 30 to net 60 | Engineers are paid every pay period while milestones are open |
| Hardware and license resale | Client pays after delivery and installation | The firm pays the distributor or vendor first, sometimes for large orders |
| Staff augmentation | Hourly billing on net terms | Payroll runs weekly or biweekly; client payments lag |
Hardware pass-through is the gap that surprises growing firms. A single office refresh or data center project can require buying servers, laptops and licenses worth more than a month of revenue, paid to a distributor before the client pays the invoice. Recurring revenue makes managed service providers steady, but adding a large client means hiring and buying tools first. Enterprise and public-sector clients often pay slowly and on their own schedules, which stretches receivables even when the work is profitable.
| Need | Product that usually fits | Why |
|---|---|---|
| Hardware and license purchases for client projects | Line of credit | Draw per project and repay when the client pays; the room reopens for the next order |
| Payroll while milestones are open | Line of credit or invoice factoring | Bridges weeks of receivables without a new application each time |
| Hiring a team for a new managed services contract | Term loan | Fixed amount and weekly payments; capped at 15% of annual revenue |
| Firm already carries an advance on daily debits | MCA refinance | $10,000 to $100,000; weekly or fixed structures are easier to plan around |
Term loans run 12 to 18 months with weekly payments, are capped at 15% of annual revenue and must be in first position; a full early payoff earns a 50% discount on the remaining interest. Lines of credit run 12 to 36 months, with a $10,000 minimum draw and no origination fee, maintenance fee or early payoff penalty. Details are on the business term loans and business line of credit pages; your offer governs.
The numbers below are illustrative only, using the lowest published line of credit rate. They are not an offer or a client story; your rate, fees and schedule are set in your offer.
A managed service provider bills about $80,000 a month ($960,000 a year) in recurring contracts. A client signs a network refresh that requires $60,000 of hardware paid to a distributor up front; the client will pay on net 45 after installation. The firm draws $60,000 from its line.
| Item | Amount |
|---|---|
| Draw | $60,000 |
| Draw fee (2.49%) | $1,494.00 |
| Monthly-equivalent payment at 1% per month, 12-month schedule | $5,330.93 |
| Interest if held the full 12 months | $3,971.13 |
| Term loan cap at 15% of $960,000 annual revenue | $144,000 |
Payment math assumes a fixed 1% monthly rate on a fully amortizing balance. There is no early payoff penalty on the line, so when the client pays, the firm can retire the draw and stop interest on that balance. If the firm instead needed to hire three engineers for a new contract, a term loan up to the $144,000 cap would give a fixed weekly schedule.
Tier 1: 650 FICO, 3 years in business, $300,000 a year or $25,000 a month, 8+ monthly deposits.
Tier 2: 600 FICO, 6 months in business, $60,000 revenue, $800 minimum daily balance.
Renewal: 550 FICO, 2 years in business, once 50% of the original balance is repaid.
The minimum FICO is 500. The 650/600/550 tiers are product criteria that decide which product a file is read against, not a floor on the business. Scores in the 500s are placed routinely and are read on revenue, deposit consistency and time in business rather than on the score alone.
See also invoice factoring, equipment financing and how professional services firms qualify.
Yes. IT consulting is on the commonly eligible list on our eligible industries page.
Steady monthly deposits make deposit consistency easy to read, which is one of the main things the review looks at alongside revenue and time in business.
Many firms use a line of credit for that: draw when the order is placed and repay when the client pays. There is no early payoff penalty.
The minimum FICO is 500. The 650/600/550 tiers are product criteria that decide which product a file is read against, not a floor on the business. Scores in the 500s are placed routinely and are read on revenue, deposit consistency and time in business rather than on the score alone.
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