Solicitors & Law Firms

Solicitor Practice Loans & Law Firm Finance

Profitable on paper.
Tight on cash.

Law firms carry pressures most businesses never see: a PII premium that can take a significant share of turnover, months of WIP waiting to be billed, and counsel, experts and court fees paid long before costs are recovered.

The pressures we see

What makes solicitors & law firms different.

  • Lock-up that stretches as matters get longer.
  • Counsel's fees, expert reports and court fees funded from office account while cases run.
  • A PII renewal and practising certificates arriving as large single payments.
  • VAT on bills clients haven't paid yet, and corporation tax or partners' tax on top.
  • Partner capital moving as people join, retire and merge.

The cash calendar

When the pressure usually lands.

QuarterlyVAT quarters
AnnualPractising certificate renewal
AnnualPII renewal
January & JulyCorporation tax / partners' tax

Acquisitions & ownership

Acquiring a firm or a practice area?

Buying a retiring practitioner's practice or merging with another firm brings goodwill, WIP, run-off cover and working capital into one transaction. We help structure the whole of it before you approach the market.

Solicitor Practice Loans & Law Firm Finance

Solicitor loans are rarely one product. Law firm finance might mean WIP or disbursement funding to support the caseload, premium finance for the PII renewal, funding for VAT and tax on bills clients have not yet paid, or a separate facility for a partner joining or retiring. Lenders offering loans for solicitors look closely at lock-up, the case mix, the SRA record and how the firm is structured. As a whole-of-market broker we look at how your firm earns and spends before we search the market, then approach lenders whose criteria suit your practice, whether you are a sole practitioner, a partnership or an LLP.

Questions

What solicitors & law firms usually ask.

Can a law firm get a loan against its WIP?

Yes, some lenders will fund against work in progress, usually based on how the firm records time, its recovery history and the type of matters. Lenders differ widely in how they value WIP, particularly on conditional fee work. We look at your case mix and billing record, then approach lenders whose criteria suit how your firm actually earns.

Can a law firm pay its PII premium monthly?

Often, yes. Premium finance spreads the professional indemnity renewal over the policy year rather than taking it from the office account in one payment. Some firms arrange it through their insurance broker; others prefer a separate facility. We can search the market for premium finance and compare it with what has already been offered at renewal.

How can a solicitor fund disbursements like counsel's fees and expert reports?

Disbursement funding lets a firm pay counsel, experts and court fees while a case runs, with the facility repaid as costs are recovered. Lenders usually look at the firm's case types, success rates and how disbursements are tracked on the case management system. We explain what information is likely to be needed before any application.

Will lenders look at our SRA record when we apply for finance?

Lenders who fund law firms usually ask about regulatory history, including any SRA investigations, conditions on practising certificates and claims on the PII record. A clean record helps, but an issue does not always rule out finance. It is better to disclose it at the start so we can approach lenders who are comfortable with the circumstances.

Can I get a loan to buy a law firm or a retiring solicitor's practice?

Yes, law firm acquisitions can be funded, but lenders will want to understand the goodwill, the WIP and lock-up being acquired, run-off cover for the outgoing firm and working capital after completion. We help structure the transaction and then search the market for lenders experienced in solicitor practice acquisitions.

Let's talk

Talk it through
with a specialist.

Before you approach a lender, speak to someone who understands the transaction. Confidential, no-obligation initial discussion.