Lock-up & Aged Debt Finance for Professional Firms
Billed. Agreed.
Still not paid.
Lock-up is the time between doing the work and being paid for it. When debtor days lengthen, a firm can be busy, profitable and still short of cash. Funding against the debtor book can release some of that value now.
- Confidential, no-obligation discussion
- Whole of market access
- We are a broker, not a lender
“Simon was excellent throughout the process.”
- Lender searchWhole of marketNot tied to any one lender
- Instant QuotesNo credit searchSee indicative quotes first
- Who we helpProfessional practicesSole traders, partnerships, LLPs and companies
- Our roleSpecialist brokerWe approach suitable lenders for you
Quick answer
What is lock-up finance?
Lock-up is the time between doing the work and being paid for it, made up of work in progress and unpaid bills. Lock-up finance releases cash against a professional firm’s debtor book, so a busy and profitable firm is not short of cash while clients take time to pay. We arrange it for law firms, accountants, architects and other practices.
The pressure
Billed. Agreed.
In professional firms, lock-up is the number that quietly decides everything: how comfortably payroll is met, whether the PII renewal hurts, whether partners can draw. WIP is one half of it. The other half is bills already issued but not yet paid, from clients who pay slowly, public bodies, insurers or paying parties.
Lock-up tends to creep. Matters get longer, clients stretch payment terms and old bills sit unchased, and each extra day adds to the cash the firm has to find. Our guide to measuring and reducing lock-up sets out how to track it and bring it down.
What can be financed
What it can cover.
“Finance that appeared unattainable was sorted within a short period of time.”
- 01 Issued fee notes and invoices awaiting payment
- 02 Aged debtors, where the debt is still recoverable
- 03 Recurring fee income from long-standing clients
- 04 A combined WIP-and-debtors facility for firms that want one arrangement
How it’s often structured
Structured around the practice.
Commonly through invoice discounting or a debtor-book facility, which advances a percentage of outstanding fees and is repaid as clients pay. Some lenders combine this with WIP funding; others fund debtors only.
How we help
Not one lender. The right one.
Invoice finance and debtor funding for professional firms is a specialist area: not every provider is comfortable with fee notes, retainers or staged billing. We search the market for those that are, and help you compare facility types before you commit.
- Whole of market accessHigh street banks, specialist and private lenders.
- Specialist understandingLenders who understand how practices earn and grow.
- Your case, properly presentedStructured and put to lenders suited to it.
- With you to completionFrom the first conversation to funds arriving.
What lenders will want to see
What lenders will look at.
- An aged debtor report, and how it has moved over recent months
- Who the clients are and how concentrated the debtor book is
- Billing terms, including retainers, staged billing and payment on account
- How the firm chases and collects fees
- Current WIP levels and any existing facilities
Some funders are comfortable with fee notes and staged billing; others are not. We know the difference and search accordingly.
Questions
What firms usually ask.
How can a law firm reduce lock-up?
Tighter billing and credit control help, but lock-up also reflects slow payers, insurers and paying parties that a firm can’t fully control. Funding against the debtor book can release cash from bills already issued while you work on collection. Some lenders also offer a combined WIP and debtors facility, covering both halves of lock-up.
What is lock-up in a professional firm?
Lock-up is the time between doing the work and being paid for it. It is usually measured as WIP days plus debtor days. When it lengthens, a solicitor, accountancy, architecture or consultancy practice can be busy and profitable yet still short of cash for payroll, PII renewal or partner drawings.
Can I get finance against unpaid fee notes or invoices?
Often, yes. Invoice discounting or a debtor-book facility can advance a percentage of outstanding fees, repaid as clients pay. The amount available depends on the lender and the quality of the debtor book. Not every provider is comfortable with fee notes, retainers or staged billing, so we search for those that are.
Can aged debtors be funded?
Some lenders will fund aged debts where they are still recoverable, though they will look closely at who owes the money, how old the debt is and the firm’s collection history. Older or disputed debts are harder to fund. We look at your debtor book and approach lenders whose criteria suit it. GOV.UK explains your rights on late commercial payments from business clients.
Is lock-up finance only for solicitors?
No. Accountants collecting fees after the January peak, architects waiting on stage payments, barristers and chambers paid long after the brief, and consultancies with staged or retainer billing can all face high lock-up. Lenders differ in which professions and billing patterns they support, which is where searching the whole market helps.
Is lock-up finance available to architecture practices?
Some lenders will fund invoiced fees for architecture practices, although milestone billing and disputes over stage completion can make work in progress harder to fund. Lenders look at client quality and collection history. Our page on finance for architects sets out the other options.
Knowledge Hub
Read the guides.
WIP Finance for Law Firms: Funding Work in Progress, Disbursements and Lock-Up
Why profitable law firms run short of cash, the funding options that bridge work in progress and disbursements, and what lenders look at when assessing a firm.
Read the guide →Reducing Lock-Up in Professional Firms: How to Measure It and Bring It Down
How to measure lock-up in a professional firm, what drives it, the practical steps that reduce it, and where finance bridges the gap rather than fixing it.
Read the guide →Funding Corporation Tax, VAT and Partners’ Tax: Loans or HMRC Payment Plans?
Why profitable practices still feel the squeeze at tax time, and how tax funding loans compare with an HMRC payment plan for corporation tax, VAT and partners’ self assessment.
Read the guide →Let's talk
Busy, profitable and short of cash?
Let’s look at your lock-up.
Before you approach a lender, speak to someone who understands the transaction. Confidential, no-obligation initial discussion.
