What does “refinancing” mean for an accountancy practice?

Refinancing means replacing one or more existing finance agreements with a new facility or combination of products that better suits the practice’s needs. For accounting firms this usually aims to:

• Lower monthly repayments to ease cashflow.
• Reduce overall interest or fees by moving to a cheaper product.
• Consolidate multiple facilities (overdraft, card debt, short-term loans) into one simple repayment.
• Release equity from premises or assets to fund growth, partner buyouts or technology upgrades.
• Replace short-term, high-cost borrowing with longer-term, predictable finance.

Refinancing does not change the business’ underlying liabilities; it restructures them to meet current objectives.

Why an accountancy practice might refinance now

Accountancy practices face specific cashflow patterns (seasonal peaks around tax deadlines, fluctuating receivables and partner drawings). Common reasons to refinance include:

• Seasonal cashflow stress during busy filing periods.
• Acquiring another practice or merging partners — needs one-off capital or a refinance of facilities.
• Upgrading practice management software, cyber-security or remote-working tech.
• Buying out a partner or rebalancing partner drawings without straining short-term facilities.
• Replacing expensive short-term borrowing with longer-term loans or invoice finance.

Example: a mid-size LLP may refinance a mortgage on their premises and consolidate an overdraft to free cash for an IT rollout.

Types of business finance that can refinance practice debt

Business term loans

Secured or unsecured term loans are common for consolidation. Secured loans (charge on property) often offer lower rates; unsecured options are quicker but costlier. Suitable for smoothing repayments over 2–10 years.

Commercial mortgages / property refinance

If your practice owns premises you can refinance the commercial mortgage to raise capital or move to better terms. This can unlock larger sums but involves valuations and legal work.

Invoice finance (factoring & discounting)

Invoice finance releases cash tied in client invoices, reducing reliance on overdrafts. It can materially reduce the need for short-term loans when clients pay over long terms.

Asset & equipment finance

Use for IT, office fit-outs or fixtures. Rather than refinancing unsecured overdraft debt, asset finance lets you fund equipment specifically while preserving other credit lines.

Overdraft restructuring & revolving credit

Combining or replacing overdrafts with a single revolving credit facility can improve control and may reduce fees.

Merchant cash advance

Short-term option advanced against card receipts — fast but typically expensive. Useful only where immediate cash is essential and alternatives are limited.

Broker-sourced multi-lender deals

Specialist brokers can combine facilities from several lenders to deliver a tailored refinance package, often useful for complex LLP structures.

The right option depends on your priority: speed, cost, or avoiding security on owner directors. Use a broker or lender who understands accountancy practice cashflow and partner drawings.

Eligibility & what lenders typically check

Lenders assess business strength and the risk of lending. For accountancy firms they commonly check:

• Turnover and recent profitability (management accounts and 1–3 years’ accounts).
• Time trading — most lenders prefer established businesses (often 12+ months).
• Bank statements showing cashflow and how existing facilities are used.
• Aged debtor ledger or evidence of invoice pipeline for invoice finance deals.
• Director information — credit history and any existing personal guarantees.
• Details of security — property or assets that could be charged if required.

Typical documents requested:

• Company accounts (2–3 years if available), or management accounts.
• Business bank statements (3–6 months).
• VAT returns, invoices and client payment terms (for invoice finance).
• ID and proof of address for directors.
• Loan/overdraft statements for refinancing comparisons.

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The benefits and the risks of refinancing for accountants

Benefits

• Lower monthly payments and improved cashflow predictability.
• Potentially lower overall interest and fees.
• Simplified administration through consolidation.
• Release capital for growth, IT, or partner buyouts.
• Access to finance that better matches invoice cycles.

Risks & downsides

• Early repayment charges on existing facilities.
• Longer-term cost may increase if you stretch the term to reduce payments.
• Security requirements: director personal guarantees or charges on property.
• Arrangement, valuation, legal and broker fees.
• Refinancing failure risk — if you cannot secure replacement finance, you may be left with existing terms.

How to weigh options: always compare total cost (APR), fees, term length, covenants and any security required. If unsure, request multiple quotes and ensure the lender’s product matches your seasonal income cycle.

How UK Business Loans helps

We do not lend. We make the search for suitable lenders and brokers quick and efficient for accountancy practices. Our typical process:

1. Complete a short enquiry (takes around 2 minutes).
2. We match your request to lenders and brokers who work with practices and the finance type you need.
3. Lenders/brokers contact you with no-obligation quotes and eligibility checks.
4. You compare offers and proceed directly with the provider you prefer.

Why this helps accountants: our partners understand partner drawings, client billing cycles and seasonal peaks. Typical timeline: initial lender contact in hours to 48 hours, offer in principle within days, completion 2–6 weeks depending on complexity.

Get Started — Free Eligibility Check (Free, fast, no obligation). By completing the enquiry you consent to being contacted by lenders/brokers who can provide quotes tailored for practices from £10,000 and above.

Costs, fees and what to ask lenders

Common costs to expect:

• Arrangement fees and broker fees.
• Valuation and legal fees (for property finance).
• Early repayment charges on existing facilities.
• Ongoing admin or facility fees for invoice finance and revolving credit.

Key questions to ask any lender or broker:

• What is the total cost (APR) and a clear breakdown of fees?
• Are there early repayment penalties?
• What security or personal guarantees are required?
• Are there covenants or reporting obligations?
• How flexible is the facility during seasonal downturns?

Quick checklist when comparing offers:

1. Total cost and fees (not just headline rate).
2. Term length vs monthly payment.
3. Security and director liability.
4. Speed to funding and documentation burden.
5. Provider reputation and sector experience.

Typical refinancing scenarios for accountancy firms

Scenario A — Consolidation for a small practice

Situation: Overdraft + business credit cards creating unpredictable fees. Solution: A medium-term unsecured/secured term loan to consolidate and lower monthly costs. Timescale: 2–4 weeks. Pros: Simpler admin and lower monthly cost. Cons: May need a personal guarantee depending on size.

Scenario B — Mid-size LLP refinancing property and freeing cash

Situation: Commercial mortgage plus short-term lending for IT upgrades. Solution: Refinance commercial mortgage to extract equity and roll short-term debt into a longer-term facility. Timescale: 6–12 weeks. Pros: Access to larger sums for strategic investment. Cons: Legal/valuation fees and longer process.

Scenario C — Using invoice finance to replace short-term loans

Situation: Clients pay on long terms forcing reliance on overdraft. Solution: Invoice factoring or discounting to release working capital. Timescale: Days to 2 weeks. Pros: Improves cashflow and may reduce interest costs. Cons: Ongoing fees and service fit must suit client billing cycles.

FCA & advertising compliance — what to know

We provide information and introductions only. Any finance offer is made by third-party lenders or brokers. Financial promotions should be clear, fair and not misleading. When reviewing offers, ask for a written breakdown of costs and any conditions that apply.

When using advertising channels, ensure all claims about costs and eligibility are substantiated and that users understand offers depend on lender criteria.

Frequently asked questions

Can my practice refinance if we have imperfect credit?

Possibly. Some lenders and brokers specialise in imperfect credit. Matching with the right provider increases chances, but terms may be more expensive and security may be required.

How long does refinancing usually take?

Simple consolidations: 2–6 weeks. Property refinance or complex multi-lender deals: 6–12 weeks. Invoice finance can be arranged fastest in many cases.

Will refinancing affect my credit score?

Submitting an enquiry does not affect credit. Lenders may perform credit checks if you proceed — ask whether they will perform a soft or hard search.

Do you charge to match me with lenders?

No — our matching service is free for businesses. Lenders/brokers pay for leads.

Is refinancing always cheaper?

Not always. A longer term can lower monthly payments but increase total interest paid. Compare APR and total costs — ask lenders for a full cost schedule.

Final steps — ready to refinance your accountancy practice?

If you want to explore refinancing options and get fast, no-obligation quotes, complete a short enquiry and we’ll match you with lenders and brokers who specialise in practice finance (loans from £10,000+).

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Internal links & further reading

For practice-specific suggestions see our accountants sector page on accountants business loans: accountants business loans.

Other useful pages: Invoice Finance, Asset Finance, How it works, FAQs, and Contact.