Unsecured Practice Loans for Professional Firms
Borrowing on the strength
of the practice.
Most professional practices hold their value in fee income, client relationships and people, not property. An unsecured practice loan lets you borrow against that income without a charge over premises or your home.
- Confidential, no-obligation discussion
- Access to 300+ lenders
- We are a broker, not a lender
“I couldn’t source funding for my business, but the team got in touch within an hour and had it sorted within 24 hours.”
- Lender panel300+ lendersWhole-of-market search
- 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 an unsecured practice loan?
An unsecured practice loan is business borrowing for a professional practice that is not secured on property. Lenders assess it mainly on fee income, trading history and credit record, and usually ask the partners or directors for a personal guarantee. Practices use it for tax bills, PII renewals, working capital, recruitment, fit-out and smaller acquisitions. We search the whole market for suitable lenders.
The pressure
Why unsecured lending suits professional firms.
A law firm, accountancy practice or dental practice can be highly profitable with very few tangible assets. Many practices lease their premises, and partners and directors rarely want to offer their homes as security for a tax bill or a new hire. Unsecured lending is assessed mainly on income, trading history and credit record instead.
Unsecured doesn’t mean without commitment. Most lenders ask the directors, partners or members for a personal guarantee, and some take a general charge over the business’s assets (a debenture), though not over property. We set out exactly what each lender requires before you decide.
What it’s often used for
What it can cover.
“It allowed me to concentrate on my business while they found me the most competitive business loan.”
- 02 PII renewals and practising certificates Where a premium finance plan isn’t the best fit.
- 03 Working capital Seasonal peaks and the gap between work and payment.
- 04 Recruitment New fee earners, clinicians or support staff.
- 05 Fit-out and technology Refurbishment, systems and smaller equipment purchases.
- 06 Partner buy-ins and smaller acquisitions Capital contributions, fee blocks and client books.
How it’s often structured
Structured around the practice.
Usually a fixed-term business loan repaid in monthly instalments, with the term matched to the purpose: shorter for a tax bill or premium, longer for growth. Some lenders offer revolving facilities that can be drawn and repaid as needs change.
Cost depends on the practice’s accounts and credit history, the term and the guarantees given. Because the lender has no property behind the loan, pricing is usually higher than secured borrowing, so for larger amounts or longer terms we compare it with secured and asset-based options too.
How we help
Not one lender. The right one.
Unsecured lenders range from high-street and challenger banks to specialist professions lenders and alternative funders, and their appetite for each profession differs widely. We look at what the money is for, how the practice earns and what guarantees you’re comfortable giving, then approach the lenders most likely to suit. If a different structure would serve you better, such as premium finance for a PII renewal or asset finance for equipment, we’ll say so.
- Access to 300+ lendersHigh 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.
- Two or three years’ accounts and recent management figures
- Recent business bank statements
- What the loan is for and how it will be repaid
- Existing borrowing and finance agreements
- The personal credit history of the partners or directors giving guarantees
Who this is for
- Solicitors & law firmsTax, PII, working capital and partner capital.
- AccountantsFee blocks, January cash flow and partners’ tax.
- Dental practicesFit-out, recruitment and smaller purchases.
- Veterinary practicesWorking capital, refurbishment and growth.
- Barristers & chambersTax and VAT on fees still to be paid.
- SurveyorsPII renewals and quieter market conditions.
- Consulting engineersPII, tax and project working capital.
- Chiropractic, osteopathy & physioNew rooms, new sites and equipment.
Questions
What firms usually ask.
Do unsecured practice loans need a personal guarantee?
Usually, yes. Most lenders ask the directors, partners or LLP members to guarantee the loan personally. It is not a charge over your home, but it does mean you could be asked to repay if the practice cannot. We explain what each lender requires before you decide, and our guide to whether a personal guarantee affects your credit score or a mortgage covers the rest.
How much can a practice borrow unsecured?
It depends on the practice’s profits, existing borrowing and trading history rather than a fixed limit. Lenders look at what the practice can comfortably afford to repay. We’ll give you a realistic view once we understand your figures.
Is an unsecured loan the cheapest option?
Not always. Because the lender has no property behind the loan, unsecured borrowing is usually priced higher than secured lending. For a PII premium, equipment or a larger acquisition, a more specific facility can cost less, and we compare the options with you.
Can a sole practitioner or small partnership borrow unsecured?
Yes, many lenders work with sole practitioners and small partnerships. Finance of £25,000 or less for sole traders and small partnerships can be regulated consumer credit, and we’ll tell you at the outset if that applies.
In our clients’ words
“Simon has been fantastic in supporting my business to secure suitable funding across several deals. He is fair and always gives advice that is in the best interest of his clients. I would recommend them to anyone.”
Knowledge Hub
Read the guides.
Let's talk
Need funding without putting up property?
Talk to us about unsecured options for your practice.
Before you approach a lender, speak to someone who understands the transaction. Confidential, no-obligation initial discussion.
Finance of £25,000 or less for sole traders and small partnerships can be regulated consumer credit. We'll tell you at the outset if that applies to your firm.
