Solicitor Practice Finance
Most law firm cashflow pressure isn’t a sign of financial difficulty. It’s the structural reality of running a firm with long billing cycles and fixed regulatory deadlines. PLC structures funding to handle those deadlines without touching the overdraft.
Who This Is For
This page is relevant if you are:
- A solicitor joining or exiting a partnership
- An existing partner requiring capital
- A firm managing tax, VAT or insurance costs
- A practice acquiring another firm or goodwill
Common Uses Of Finance
Solicitors commonly use practice finance for:
- Partner buy-in or buy-out
- Practice acquisition or merger
- PII premium funding
- Corporation tax or VAT liabilities
- Working capital and cashflow management
- Practising certificates — 12 months, consolidated for the firm
- Aged debt support — where outstanding invoiced amounts can be supported
- Partner buy-in and buy-out — typically 2–5 years
- Refurbishment and technology investment
HOW THE PROCESS WORKS
Initial discussion
We discuss the structure of the firm, the purpose of funding and timescales. This does not impact your credit score.
Lender matching
We approach suitable lenders experienced in solicitor practice finance.
Review of information
We review accounts, management figures, partnership structures and existing commitments.
Completion
Once terms are agreed, funding is documented and completed.
Typical Amounts And Terms
- £10,000 to £500,000+
- Terms from 12 months to 7 years
- Often unsecured
- Personal guarantees may be required
What Lenders Look For
- 2–3 years’ accounts
- Stable fee income
- Partnership structure and drawings
- Existing borrowing and commitments
Documents Typically Required
- Latest full accounts
- Recent management figures (if available)
- Partner details and ownership
- Purpose of funding
- PII schedule (where relevant)
Risks And considerations
- Personal guarantees may be required
- Early repayment charges may apply
- Unsecured lending can carry higher interest rates
- Some lending is unregulated
Frequently Asked Questions
Get answers to the most common questions about our practice finance solutions, application process, and tailored funding options for professional practices.
Can PII be spread over 24 months?
Yes, where the insurer offers that payment profile and lender criteria are met.
Can practising certificates be funded for the whole firm?
Yes — often consolidated into a single facility spread over 12 months, covering all fee earners in one arrangement.
Can you help fund disbursements and reduce lock-up pressure?
Yes. Disbursement funding bridges the gap between costs paid out on clients’ behalf and the point those costs are recovered — which can be months on complex or lengthy matters. WIP funding addresses the earlier stage: billable work that has not yet been invoiced.
What is the difference between WIP funding and aged debt for a law firm?
Yes. Disbursement funding bridges the gap between costs paid out on clients’ behalf and the point those costs are recovered — which can be months on complex or lengthy matters. WIP funding addresses the earlier stage: billable work that has not yet been invoiced.
Can VAT be funded quarterly?
Yes — typically a 3-month facility aligned to the VAT quarter.
Can partner exits be funded unsecured?
Often yes, subject to the practice profile and affordability.
How fast can a decision be made?
Usually within 24–48 hours once documents are in. PII at short notice is something we handle regularly — the pack needs to be complete.
Do clients need to be told?
Funding structure depends on product; we discuss confidentiality and mechanics case by case.
Do you charge upfront fees?
No.
Are personal guarantees required?
Sometimes — lender and structure dependent. Always confirmed before anything proceeds.
Can PII and practising certificates be funded together?
Yes — both can be structured concurrently as separate facilities where affordability supports it.
Is this regulated advice?
No — process explanation only. All facilities are subject to lender assessment and eligibility.
Grow Your Practice with Confidence
Speak to a specialist who understands solicitor practice finance. A short initial conversation will confirm whether funding is suitable.
