Legal Practice Business Loans

From office premises to funding client matters, fund your legal practice with confidence. Explore business funding through Fundably. Eligibility criteria apply.

Typical Range

£10k – £500k

Average Loan

£80k

for legal practice

Decision Speed

24–48 hrs

for unsecured loans

Eligibility requirements

Minimum 12 months trading history as a regulated practice
Current authorisation from the relevant UK legal services regulator
Current professional indemnity insurance in place
Personal guarantee usually required from partners or directors

Loan types available

Revolving Credit Facility

Rate: 8.9% – 24.9% APR on funds drawn
Term: 12 – 24 month facility, renewable
Security: No fixed security, personal guarantee usually required
Best for: Funding disbursements and work-in-progress on matters that are billed only once concluded

Unsecured Business Loan

Rate: 7.4% – 26.9% APR
Term: 1 – 6 years
Security: No security required
Best for: Partner capital contributions, IT and case management systems, or hiring fee-earners

Secured Business Loan

Rate: 4.9% – 15.9% APR
Term: 1 – 20 years
Security: Commercial property or personal property
Best for: Buying office premises, or funding a merger with another practice

Representative example

Borrow £80,000 over 36 months at 9.9% APR (fixed). Monthly repayment: ~£2,578. Rates depend on your circumstances and the type of loan.

Common challenges

Regulatory rules on client account handling and record-keeping add a compliance cost and require careful separation from general business finances
Disbursements and work-in-progress on longer-running or contentious matters can tie up cash for months before a matter concludes and is billed
Professional indemnity insurance premiums are a significant and rising fixed cost, particularly for firms handling higher-value or higher-risk work
Reliance on a small number of case types or referral sources can create income concentration risk if demand in that area shifts

Bad credit?

Some specialist lenders consider legal practice businesses with imperfect credit. You may need a personal guarantee or higher rate, but options may be available. Fundably may use a soft credit check for matching, which does not affect your credit score. A hard check may happen if you choose to proceed with a lender.

Frequently asked questions

Can I borrow to fund disbursements and work-in-progress on client matters?

Yes, a revolving credit facility is commonly used for this, letting a practice draw funds to cover disbursements, counsel fees and overheads on matters that are billed only once concluded, then repay as fees are recovered. This suits firms handling longer-running or contentious work, where the gap between incurring costs and being paid can run to many months. Keeping clear records of work-in-progress by matter also helps a lender size the facility correctly.

Do I need client consent or special approval to take out business finance?

Business finance taken out by the practice itself, rather than involving client funds, does not generally require client consent, since it is a matter of the firm's own working capital rather than money held on trust. Lenders will, however, want reassurance that client account funds remain properly segregated and are never used as security or repayment for the firm's own borrowing.

Can I get finance to fund a partner buy-in or capital contribution?

Yes, this is a common use of unsecured lending in professional practices, funding an incoming partner's capital contribution which is then typically repaid from future drawings. Lenders will usually want to see the partnership or LLP agreement setting out the capital structure alongside the practice's trading history. Lendus can compare terms across lenders experienced in financing partnership and LLP capital structures.

How does professional indemnity insurance affect my ability to borrow?

Lenders will typically ask for confirmation that your current professional indemnity cover is in place and adequate for the type of work you handle, since this underpins the practice's ability to trade. A stable claims history and appropriate cover levels support a stronger application, in a similar way to how a clean trading history supports lending to any regulated business.

Equipment finance for legal practice businesses

Buying a specific machine or vehicle is usually cheaper than a general business loan, because the asset itself is the security. These are the items legal practice businesses most often fund, with the price range we see quoted in the UK.

Equipment	Typical price range	Finance page
Office Fit-Out	£10k to £500k	Office Fit-Out finance
Server	£3k to £60k	Server finance
Barber Chair	£600 to £20k	Barber Chair finance
Beauty Couch	£500 to £15k	Beauty Couch finance
Body Shop Equipment	£10k to £200k	Body Shop Equipment finance
Car Wash Equipment	£15k to £250k	Car Wash Equipment finance
Climbing Wall	£10k to £200k	Climbing Wall finance
Commercial Dryer	£2k to £50k	Commercial Dryer finance
Commercial Gym Equipment	£5k to £300k	Commercial Gym Equipment finance
Commercial Washing Machine	£2k to £60k	Commercial Washing Machine finance
Desk Fleet	£2k to £80k	Desk Fleet finance
Diagnostic Equipment	£2k to £30k	Diagnostic Equipment finance

Browse all equipment finance pages

Guides and resources

How to Get a Business Loan Business Loan Eligibility Secured vs Unsecured Best Business Loans UK iwoca Review Funding Circle Review

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For UK limited companies with at least 3 months’ trading and monthly revenue.