Finance for professional services firms
Work in progress is real value that no lender can repossess. Funding a professional firm is about the reliability of its fee income, not its assets.
Request a callback- Commonly funded
- Acquisition, technology, WIP
- Typical facilities
- Term loans, invoice finance
- Lender focus
- Recurring fees and lock-up
This page describes what businesses in this sector typically fund and what lenders generally look for. It is not a recommendation, and what is available to you depends on your own circumstances.
About professional services
Professional firms have almost nothing a funder could sell. The value sits in client relationships, in people, and in work in progress that has been done but not yet billed. Lending is therefore underwritten almost entirely on the quality and reliability of fee income.
The good news is that recurring fees are exactly what lenders like. A firm with a stable base of retained clients and predictable annual billing is a strong proposition, and specialist lenders exist for regulated professions who understand partner capital, practice acquisition and how lock-up genuinely behaves.
What firms fund
- Acquiring another practice, a block of fees or a client portfolio.
- Partner capital contributions on joining or on promotion.
- Practice management systems, case management software and IT infrastructure.
- Office relocation, refurbishment and fit-out.
- Working capital against work in progress and unbilled time.
- Professional indemnity premiums, spread across the year.
What lenders assess
- The proportion of income that recurs annually against one-off project work.
- Lock-up — how long work sits between being done and being paid for.
- Client concentration and the length of key relationships.
- Partner or director stability, since the people are effectively the asset.
- Regulatory standing and professional indemnity cover.
Frequently asked
Can I borrow to buy another practice?
Yes, and it is one of the most common reasons professional firms borrow. Lenders will focus on fee retention after the acquisition — how much of the acquired client base realistically stays — and will often structure repayment around that.
Can work in progress be funded?
In some professions, yes, though it is more specialised than ordinary invoice finance because the work is not yet billed. Funders will want reliable time recording and a demonstrable history of WIP converting into paid invoices.
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Tell us what your business does
We will tell you which funders lend into your industry, and roughly what they are likely to say.
