Quick at-a-glance checklist

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Why this matters for solicitors

Legal practices commonly experience timing mismatches: client account disbursements, SDLT settlements, delayed completions and conditional fee invoices can create short-term liquidity gaps. A facility that looks cheap on headline rate can be expensive if it triggers covenants when a completion slips.

Solicitors need lenders and brokers who understand trust account timing, SRA client money obligations and conveyancing pipeline volatility. For sector-specific guidance, see the SRA client money guidance. If you want tailored matching for legal practices, our industry page on Solicitors Business Loans explains common solutions and lender types.

What to compare in any quote

Total cost — interest, fees and APR

Don’t just look at the headline interest rate. The true cost includes arrangement fees, valuation/legal fees, monitoring fees and any upfront or ongoing admin charges. APR can help compare products that advertise different fee structures, but APR assumptions vary—confirm the fee schedule used.

Example: a 6.5% loan with a 2% arrangement fee and a £25 monthly admin charge can add materially to the effective rate over 24 months. How to ask: “Please show a worked example for 12/24/36 months including all fees and monthly admin so we can compare effective cost.”

Repayment schedule & flexibility

Review repayment frequency, seasonality options, interest‑only periods and whether payments can be aligned to completion cycles. Payment holidays or carve-outs for delayed client settlements are valuable.

How to ask: “Can you provide available repayment structures and confirm whether interest-only periods, payment holidays or seasonal payment scheduling are permitted?”

Security, charges and personal guarantees

Identify what assets are charged: fixed or floating charges on business assets, liens on client money (rare and usually unacceptable), and whether directors must sign unlimited personal guarantees. Check the scope and triggers of any cross‑defaults.

How to ask: “Please confirm exact security required and provide clause wording for any personal guarantee and fixed/floating charge so our solicitors can review.”

Covenants, reporting & restrictions

Look for financial covenants (e.g., minimum cash, EBITDA targets), frequency of reporting, restrictions on dividends or partner drawings, and limits on acquisitions or new lending. Frequent covenant testing increases operational burden.

How to ask: “List covenant tests, measurement periods and reporting schedule; can quarterly covenants be tested annually instead?”

Early repayment, break costs and refinancing penalties

Check notice periods, how break costs are calculated (compensation for lost interest vs fixed exit fees), and any minimum term that prevents refinancing. Some lenders levy percentage exit fees even after a short period.

How to ask: “Confirm the exact early repayment calculation and any minimum term or exit fee applicable on voluntary repayment or refinance.”

Fees and “hidden” charges

Watch for legal fees, valuation fees, monitoring/admin fees, amendment fees, late payment fees and renewal fees. Ask for a single total of all anticipated upfront and ongoing fees for a given facility period.

How to ask: “Provide a full fee schedule and indicate which fees are refundable or one-off vs ongoing.”

Service & speed (drawdown, support)

Determine typical decision times, documentation needed at drawdown, and whether the lender has experience funding solicitors—speed matters when completion windows are tight. Confirm whether a dedicated account manager is provided post-funding.

How to ask: “What is your average time to decision and to funds for similar legal practice facilities? Do you assign a relationship manager?”

Credit criteria & impact on firm

Confirm whether directors’ personal credit checks are required, whether the facility appears on company credit files, and how covenant breaches are reported. Some providers report defaults publicly which can affect future borrowing.

How to ask: “Detail what credit checks will be performed and how the facility will be recorded on corporate and personal credit files.”

Assessing suitability for law firms

Match the product to the firm’s pipeline and structure. For conveyancing-heavy firms, short-term bridging or completion finance may be preferable; for firms with invoiceable work, invoice finance or debtor finance can smooth cashflow. For one-off property transactions, bridging can cover settlement timing.

Consider firm size and partners’ risk appetite: multi-partner firms may accept enterprise-level covenants; smaller practices may prefer flexible overdrafts or invoice finance to avoid personal guarantees. Always ask whether a lender has prior solicitor clients or case studies.

If you’re unsure which product suits your needs, Get Started — Free Eligibility Check and we’ll match you to lenders/brokers experienced with legal practices.

Due diligence on introduced brokers and lenders

Verify credentials

Ask for company registration details and, where applicable, FCA firm reference numbers. Check reviews, complaints history and whether the broker/lender has handled solicitor clients.

Request worked examples

Demand 12/24/36-month cost scenarios that include all fees and an explanation of assumptions. If a broker supplies an indicative rate only, insist on a full term sheet.

Referrals & conflicts

Ask for referees from comparable firms and require full disclosure of any commission or referral fees the broker receives. If a broker is biased towards a single lender, treat the quote accordingly.

Turnaround & support

Confirm expected timescales and who will manage post-funding issues. A named contact and SLAs reduce risk during tight completion schedules.

Negotiation tips

• Ask to remove or cap early repayment fees: “Can we remove the early repayment charge after X months or cap it at Y%?”
• Negotiate admin and monitoring fees: “Can you waive the monthly admin fee for the first 12 months?”
• Seek covenant relief: “Can covenant testing be annual not quarterly, and exclude exceptional one‑off items?”
• Start with a pilot facility or staged drawdown to prove performance before taking a larger, longer-term facility.
• Always have the facility agreement reviewed by your independent solicitor before signing.

Red flags: what to watch for

• Vague pricing or refusal to provide worked examples
• Pressure to sign quickly without full term sheet
• No written evidence of commissions or conflicts of interest
• Requests for unlimited personal guarantees without caps or sunset clauses
• Unclear security descriptions (e.g., “all present and future assets” without limits)

How UK Business Loans helps solicitors

UK Business Loans is a free, no‑obligation introducer that matches law firms to lenders and brokers who understand legal practice cashflow. Complete a short enquiry and we will connect you with suitable partners who can provide tailored quotes for facilities from around £10,000 and up. The enquiry is an information request only — not an application — and won’t affect your credit score.

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We handle enquiries confidentially and only share your details with selected partners who can help. When you complete the enquiry form, matched brokers/lenders will contact you directly with quotes and next steps.

FAQ

Will submitting an enquiry affect our credit score?

No. An initial matching enquiry via UK Business Loans does not affect your credit score. Lenders or brokers may perform checks if you progress to an application—confirm this with them first.

Do you charge law firms to use the service?

No. Our introduction service is free for solicitors. Lenders and brokers may charge fees as part of their products—these will be disclosed in quotes.

What information is needed to get a quote?

Basic firm details, turnover, desired loan amount and purpose, and a contact name/number. For faster, more accurate quotes, have recent accounts and a brief summary of your pipeline available.

Can we compare multiple offers?

Yes. We aim to introduce you to multiple lenders/brokers so you can compare proposals and choose the best fit.

How long before a lender contacts us?

Typically within hours during business days; complex requests may take longer. Expect contact soon after you submit an enquiry.

Closing summary & compliance statement

To assess quotes effectively, compare the total cost, repayment flexibility, security and guarantee scope, covenants, early repayment charges and the introducer/lender’s track record with legal practices. Use worked examples, verify credentials and seek independent legal review before you sign.

Important: UK Business Loans introduces law firms to lenders and brokers but does not lend money or provide regulated financial advice. An enquiry is a matching request only and is not an application. You should obtain independent legal or regulated financial advice before entering any facility. Lenders or brokers may carry out credit checks and term details vary between providers.

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