Professional Practice Finance
What 'Professional Practice Finance' Means
Most lenders lend to businesses. They look at assets, turnover and credit history.
Professional practices are different. A law firm with £2m of lock-up and strong recurring fees may look cash-poor on a standard assessment. A barrister with delayed receipts on three large briefs may look like a bad credit risk on paper. A two-partner accountancy firm acquiring a retiring colleague’s fee block through a new company may not fit any standard lending box at all.
PLC specialises in bridging that gap. We understand how regulated professions generate income, carry risk and structure equity — and we translate that for lenders who need to see it clearly.
Why Practices Are Assessed Differently
- Income may be recurring but cashflow is often uneven — VAT timing, lock-up, billing cycles and tax all create pressure at different points in the year.
- Partners need capital accounts and structured equity transitions — different from a sole trader drawing profit.
- Regulatory standing matters to lenders: SRA, ICAEW, ACCA, GDC, RCVS, RICS, GMC, GOC, GCC and others affect how a practice is assessed.
- Practice value is frequently driven by goodwill and maintainable earnings, not physical assets.
Common Funding Categories
- Unsecured practice loans — no property charge in many cases.
- Working capital and cashflow support, short to multi-year.
- Tax facilities: VAT (3 months), corporation tax (up to 12 months), self-assessment (6 or 12 months).
- PII premium finance: 12, 18 or 24 months, aligned to policy term.
- Practising certificate funding: 12 months.
- Aged debt: primarily for barristers — structured against collectible outstanding fee notes.
- WIP funding and disbursement funding: primarily for solicitors — structured against billable or recoverable income.
- Refurbishment and premises investment: typically 2–5 years as a practice loan.
- Growth Guarantee Scheme: up to £2m for eligible businesses.
- Secured lending and commercial mortgages where longer terms or larger amounts are required.
What Lenders Typically Review
- Last 2–3 years' accounts, plus management information where needed.
- Bank conduct and affordability — how the account has been run matters as much as the headline profit.
- Lock-up, debtor ageing and WIP conversion where relevant.
- Client concentration and sustainability of income — one major client at 40% of fees is a different risk profile.
- Existing borrowing and any regulatory matters.
Frequently Asked Questions
Get answers to the most common questions about our practice finance solutions, application process, and tailored funding options for professional practices.
What is professional practice finance?
Finance arranged and assessed with the realities of regulated practices in mind — income profile, lock-up, regulatory status, partnership capital and goodwill — rather than generic SME criteria.
How is it different from standard SME lending?
Underwriting focuses on recurring income, professional structure and regulatory standing rather than physical assets alone. A practice with strong fees but limited tangible assets should be assessed differently from a manufacturer with significant physical collateral.
What is the difference between WIP funding and aged debt?
WIP funding is structured against billable but not yet invoiced work — income earned but not yet raised as a bill. Aged debt relates to invoices raised but not yet paid. For solicitors, WIP and disbursement funding are the primary structures. For barristers, aged debt is the primary route.
What is disbursement funding?
Disbursements are costs paid on behalf of clients — court fees, search fees, expert reports — that are recovered later. Disbursement funding bridges the gap between payment and recovery, which can run to several months on complex matters.
Can acquisitions be funded unsecured?
Often yes, subject to affordability and lender criteria. The practice profile, recurring income quality and structure of the transaction all affect lender appetite.
Can tax and acquisition funding be combined?
Yes, where affordability allows — often as separate facilities with different repayment profiles running concurrently.
Can a new company with no trading history be used to acquire a practice?
In some circumstances, yes. Where the acquiring individuals are qualified professionals with relevant experience, lenders may assess them rather than the entity. This is a specific route and not universally available — speak to PLC before assuming it works.
Do we need personal guarantees?
This depends on the lender and facility type. Requirements are explained clearly before any application proceeds.
How quickly can funding be arranged?
Initial lender views are often available within 24–48 hours once the information is in. Completion depends on complexity — we will give you a realistic timeline at the outset, not an optimistic one.
Is aged debt or WIP funding the same as factoring?
Not necessarily. Structures vary and may be bespoke to professional receivables. Some lenders take a straightforward view; others look at the profile in detail. We match to the right lender for the specific situation.
Do you offer refurbishment funding only as asset finance?
No. Refurbishment is usually structured as a practice loan over 2–5 years. Equipment with identifiable resale value can be financed separately via asset finance and layered alongside.
Can you structure facilities around regulatory deadlines?
Yes. PII renewal, practising certificate renewal and tax deadlines are among the most common triggers. The point of structuring is to remove timing pressure — not add a new one.
Will you approach lots of lenders on our behalf?
No. PLC selects an appropriate route to an appropriate lender. Scatter-gun submissions create noise, delay and unnecessary credit footprint. We avoid them.
Can you fund partner buy-outs or retirements?
Yes. Partner exits are commonly funded over multi-year terms. Planning 6–12 months ahead produces significantly better outcomes than a reactive application six weeks before the event.
Do practices need property security for larger amounts?
Not always. Some lenders will consider larger unsecured facilities where the practice profile is strong enough. Secured options exist where a property charge is acceptable and appropriate.
Can you support advisers and introducers?
Yes — PLC works alongside accountants, IFAs and other advisers. The client relationship stays with you.
What should we do first?
Call or use the apply form. Tell us the purpose, the rough amount and the timing. We will tell you quickly whether it is fundable and what the route looks like.
What will lenders look at first?
Recent accounts, bank conduct, profitability, existing borrowing and a clear explanation of what the funding achieves and how it gets repaid.
Grow Your Practice with Confidence
Speak to a specialist who understands pharmacy finance. A short initial conversation will confirm whether funding is suitable.
