Growth does not look the same from one law firm to another.
For one practice, it may mean taking on new staff and providing the equipment they need. For another, it may mean having enough working capital to accept more cases while waiting for existing matters to conclude.
Both firms in this case study had clear plans. Both needed funding that reflected how their businesses actually operated. And both secured tailored facilities through Braemar Finance.
We would like to thank Braemar Finance for their support and quick decision-making on these two applications.
The firms remain anonymous. One was a two-partner practice based near Sheffield. The other was a long-standing law firm near Manchester, trading for over 20 years.
The funding requirements were different:
- Approximately £25k over 3 years for staff, equipment and hiring costs
- £100k over 5 years to support additional casework and longer payment cycles
The common point was simple. Neither firm fitted neatly into a standard funding box.
Two firms. Two practical requirements.
Law firm funding needs to reflect the way legal practices earn and spend money.
A new hire can take time to become fee-positive. The firm may need to cover recruitment costs, salary, equipment and software before the additional income begins to arrive.
Long-running cases create a different pressure. The work may be commercially worthwhile, but costs can build up well before the firm receives payment.
These situations call for different funding structures.
The first firm needed capacity to grow. The second needed working capital to support its caseload.
In both cases, the lender considered the wider trading position of the practice rather than relying only on a rigid view of the current company structure.
Case one: £25k to expand a two-partner firm
The first client was a two-partner law firm based near Sheffield.
The firm had plans to expand by taking on new staff. The funding was intended to cover the practical costs connected with that expansion, including:
- Hiring costs
- New staff costs
- Equipment for those staff
- The early working-capital requirement while the team developed
The firm was looking for approximately £25k over 3 years.
That is a familiar requirement for a growing professional practice. The opportunity is clear, but the spending comes first. Recruitment, equipment and onboarding costs arrive before the full benefit of the additional capacity is visible in the accounts.
For a smaller law firm, keeping cashflow steady during that period matters. The funding needed to support the plan without placing unnecessary pressure on the firm's day-to-day reserves.
A trading history that needed proper consideration
The firm had originally traded as a partnership and had since moved to a limited company structure.
That history was important.
Some mainstream SME lenders focus heavily on the trading history of the current limited company. Where a business has recently incorporated, this can make the application more difficult, even when the underlying practice has an established history and the partners have continued operating the business.
Specialist lenders can take a broader view.
In this case, the lender was able to consider the firm's previous partnership background alongside its current limited company position. That is one of the practical advantages of working with a specialist lender that understands law firms and professional practices.
The application included:
- Accounts
- Management accounts
- Bank statements
Those documents helped provide a clearer view of the firm's current performance, cashflow and growth plans.
The key point was not simply that the firm had incorporated. It was that the business had a trading history, an operating plan and a specific reason for seeking funding.
That distinction can matter when arranging solicitor practice loans.
Case two: £100k to fund longer-running cases
The second client was a well-established law firm near Manchester. It had been trading for over 20 years and had a clear plan to take on additional cases.
The firm's work could run for some time before payment was received. During that period, the practice still needed to meet its regular costs and support the work being carried out.
The funding requirement was £100k over 5 years.
The facility was intended to provide working capital for the firm's caseload. This would allow the practice to take on extra cases without relying entirely on the timing of payments from existing matters.
For firms dealing with longer-running cases, the gap between work undertaken and cash received can be significant. The cases may be commercially sound, but the cashflow does not always follow the same timetable as the work.
Working capital helps bridge that gap.
It can support the costs of:
- Staff time
- Case administration
- Professional fees
- Disbursements and other case-related costs
- General overheads while matters progress
The facility gave the firm more room to plan ahead rather than making each new case dependent on when another matter reached payment.
Clear pricing mattered
Before approaching Practice Capital, the firm had already received offers from SME lenders.
However, the upfront fees attached to those offers made the effective interest rates very high. The headline rate did not tell the whole story. Once the fees were taken into account, the overall cost was less attractive and harder to plan around.
Practice Capital secured £100k with just a £149 lender admin fee and a fixed interest rate over 5 years.
That gave the firm a clearer pricing structure.
A fixed interest rate can make planning easier because the agreed repayments are not exposed to changes in the rate during the term. The £149 lender admin fee was also transparent from the outset.
The firm could assess the facility based on its full cost, rather than comparing headline rates without considering the effect of substantial upfront fees.
This was an important part of the arrangement. The right law firm funding solution is not only about securing the amount required. It is also about understanding the cost and repayment structure clearly.
A tailored offer for each practice
The two facilities were arranged through Braemar Finance.
The applications were different, but the process moved at a similar pace.
Underwriting took between 2 and 3 days. Once all documents had been completed online, payout was within a couple of days.
That timing helped both practices keep their plans moving.
For the firm near Sheffield, the focus was expansion. It needed funding for people, equipment and the cost of building additional capacity.
For the firm near Manchester, the focus was working capital. It needed room to fund longer-running cases before payment was received.
The lending structure was tailored to each situation. Neither application was treated as a generic SME borrowing request.
Both loans were supported by one personal guarantee from the majority shareholder of each firm. This formed part of the agreed terms and was explained as part of the application process.
Why specialist law firm funding can help
A law firm's financial position is not always clear from a single snapshot.
The firm may have:
- A recent change in legal structure
- Revenue tied up in work in progress
- Longer-running cases
- Partner drawings that need to be understood in context
- Hiring plans that will affect future capacity
- Costs that arrive before the associated income
Specialist lenders are more familiar with these features.
That does not mean every application will be approved, or that specialist finance is always the right route. It does mean the application can be considered with a better understanding of how legal practices operate.
For the first firm, the lender could consider the partnership history behind the current limited company.
For the second, the lender offered a clear fixed-rate structure with a £149 lender admin fee, rather than allowing upfront fees to push the effective cost significantly higher.
These are different advantages, but both came from matching the practice with a lender that understood the requirement.
Documents and process
A practical application starts with a clear view of the firm's position.
Depending on the structure and the facility required, lenders may ask for:
- Recent accounts
- Management accounts
- Business bank statements
- Details of the shareholders or partners
- Information about the purpose of the funding
- Personal guarantee details, where required
The first firm supplied accounts, management accounts and bank statements. This supported the lender's review of both its historic trading position and its current plans.
The applications were completed online. Underwriting took between 2 and 3 days, with payout within a couple of days after all documents had been completed.
The process remains subject to lender assessment, affordability and the final agreed terms. The examples are representative of these two cases and are not a guarantee of future timescales or outcomes.
Funding growth on the firm's terms
Growth can mean hiring ahead of revenue. It can mean investing in equipment. It can mean taking on more work while waiting for existing cases to conclude.
The funding structure should reflect the reason for borrowing.
For the two firms in this case study, that meant:
- Approximately £25k over 3 years for a two-partner firm near Sheffield
- £100k over 5 years for a long-standing firm near Manchester
- A specialist lender able to consider partnership trading history
- A fixed interest rate and £149 lender admin fee for the larger facility
- One personal guarantee from the majority shareholder of each firm
- Underwriting in 2 to 3 days
- Payout within a couple of days after online completion
If your firm is considering law firm funding, professional practice loans or solicitor practice loans for growth, it is worth looking beyond the amount alone.
Consider the lender's understanding of your sector, the full cost of the facility, the repayment term, the documentation required and whether the structure fits the way your firm earns and spends money.
Practice Capital is an independent, FCA-regulated credit broker, not a lender. We work with specialist lenders and provide a confidential, non-binding initial discussion. There are no upfront broker fees; our commission is paid by the lender.
Explore legal practice finance, start a confidential enquiry or talk to a specialist to discuss your firm's plans.