Solicitors’ Business Loans — Eligibility Requirements (UK)

Last updated: October 2025

Summary (in short): Most UK lenders accept limited companies, LLPs and partnerships running a law practice, typically requiring at least 6–12 months’ trading for small loans and 2+ years for larger facilities. Lenders look at turnover, profitability, management accounts, SRA compliance and professional indemnity insurance. Director credit and guarantees, security (property or assets) and the clear purpose of funds matter. Loans usually start from around £10,000. For a quick assessment of your firm’s chances, get a Free Eligibility Check — Get Quote Now.

Quick summary — what lenders usually expect

• Entity types: limited companies, LLPs and partnerships (most lenders prefer company or LLP structures).
• Trading history: typically 6–12 months minimum for small facilities; 2+ years for larger loans.
• Turnover & profitability: lenders review annual turnover, margins and recent profitability.
• Regulatory & professional cover: valid Professional Indemnity (PI) insurance and compliance with SRA rules.
• Director checks: personal credit history, adverse records and willingness to provide guarantees.
• Security: unsecured up to a point; property or asset-secured options for larger sums.
• Purpose: clearly stated use (working capital, bridging, acquisition, refinance) improves chances.

Get a Free Eligibility Check — Get Quote Now (takes under 2 minutes; no obligation).

Who can apply?

Most lenders and specialist brokers that work with law firms will consider:

• Limited companies operating a solicitors’ practice (the most commonly accepted structure).
• Limited liability partnerships (LLPs) and multi-partner practices.
• Partnerships where the legal entity is formally registered and has transparent accounts.

If you run a newly formed practice, specialist lenders and brokers may consider applications but expect higher scrutiny and potentially higher costs. To find providers that specifically work with your business type, try our Free Eligibility Check — Get Quote Now.

For a sector-specific overview of products for law firms see our page on solicitors business loans.

Key eligibility criteria lenders use

Trading history and financial performance

Lenders review how long the practice has traded and how well it performs. Typical expectations:

• Smaller loans: 6–12 months trading with up-to-date management accounts.
• Larger facilities (over £50k–£100k): 18–24 months trading and 1–2 years’ statutory accounts.
• Metrics considered: annual turnover, net profit, gross margin, debtor days and cashflow forecasts.

Tip: prepare 12–24 months of management accounts and a 3–6 month cashflow forecast to speed up assessment.

Professional & regulatory compliance

Lenders expect solicitors’ practices to be properly regulated and insured. Key items:

• SRA registration and compliance with client money rules.
• Valid Professional Indemnity (PI) insurance — lenders will usually ask for certificates.
• Disclosure of any ongoing disciplinary matters or investigations; undisclosed regulatory issues can jeopardise applications.

Director credit history & personal guarantees

Directors or partners are commonly credit‑checked. Lenders will look for:

• CCJs, defaults, bankruptcies, IVAs or recent county court actions — tolerances vary by lender.
• Willingness from directors to provide personal guarantees can increase options, especially for newer practices.

Security & loan type

Options vary with size and risk profile:

• Unsecured business loans — typically faster, for smaller amounts, higher rates.
• Secured loans — property or business assets used as security; lower rates and larger amounts possible.
• Invoice finance (factoring/discounting) — depends on client base and the nature of invoices/retainers.
• Bridging loans — short-term finance for conveyancing or completion timing issues, usually secured against property.

Note: client account balances are usually ring‑fenced and not acceptable as security.

Purpose and use of proceeds

Lenders prefer clearly defined, commercial uses: working capital, premises, equipment, practice acquisition or refinancing. Specialist funding (e.g., litigation funding) may require niche lenders.

Documentation lenders will request

Providing these documents upfront speeds the process:

• Latest management accounts (12 months) and statutory accounts (where available).
• Business bank statements (typically 3–6 months).
• VAT returns and corporation tax filings (if applicable).
• PI insurance certificate and SRA registration details.
• ID and proof of address for directors/partners.
• Details of major ongoing matters or clients where funding is linked to specific cases.
• Property valuation or asset details if security is being offered.

If you’re unsure which lenders will ask for which documents, submit a short form and we’ll tell you what to prepare — Free Eligibility Check.

Common exclusions and red flags

Lenders often decline or price higher when any of the following apply:

• Undisclosed regulatory investigations or recent disciplinary sanctions.
• Significant business tax arrears, PAYE or VAT arrears.
• Recent director bankruptcies or multiple county court judgments.
• Overreliance on a single client representing a very large share of turnover.
• Improper use of client money or poor client account records.

Practical fixes: reconcile accounts, resolve tax and payroll issues, update PI cover and get professionally prepared management accounts.

Specialist loan types for solicitors

Common products used by law firms include:

• Invoice finance — frees cash tied up in bills and retainer-related invoices.
• Bridging finance — short-term secured loans to manage timing on completions.
• Asset & equipment finance — for office fit-outs, IT, furniture and telephony systems.
• Practice acquisition finance — tailored facilities to buy another firm.
• Working capital loans — unsecured or secured to cover payroll, rent or temporary cash shortfalls.

Each product has different eligibility rules; tell us what you need and we’ll match you to the specialist who can help — Get Quote Now.

How UK Business Loans helps

We are an introducer — we do not lend. Our role:

1. You complete a short enquiry (a few details about your firm and funding needs).
2. We match you with lenders and brokers who specialise in law firms and solicitors’ finance.
3. Selected partners contact you with tailored quotes so you can compare options and choose what suits you best.

Our enquiry is informational only — not an application — and submitting it does not commit you. Typical loan sizes arranged start from around £10,000 upwards. To begin, use our quick form: Get a Free Eligibility Check.

What to expect after you submit an enquiry

Timeline and process:

• Initial contact: usually within a few hours during business days.
• Preliminary quotes/terms: often within 24–72 hours, depending on complexity.
• Full approval: after documentation, checks and (if needed) valuations — timing varies by lender.

We will tell you if a partner will perform a soft or hard credit search before they do so.

Frequently asked questions

Will submitting an enquiry affect my credit score?

No — submitting your details to UK Business Loans for a match does not affect your credit score. Lenders may carry out credit checks if you progress; we’ll clarify whether those are soft or hard searches.

Can I use client account money as security?

No. Client money is generally ring‑fenced under SRA rules and is not acceptable collateral. Lenders will look at other assets, invoices, property or unsecured facilities.

Do I need Professional Indemnity insurance to qualify?

Yes. Lenders normally require current PI insurance and will ask for proof before lending.

What minimum loan size can you arrange?

We typically work with lenders who offer loans from around £10,000 upwards.

My firm has had credit issues — are there options?

Yes. Specialist lenders and brokers exist for higher-risk cases; available options may include asset-backed lending, invoice finance or bridging. Submit an enquiry to explore tailored options.

How quickly will a lender get back to me with a quote?

Many partners respond within hours. Formal offers depend on documentation and checks and can take several days.

Next steps — Get your free eligibility check

If you run a solicitor practice and want clarity on your chances of getting finance, complete our short form (under 2 minutes). We’ll match you with lenders and brokers who understand legal practices and will contact you with quotes — Get Quote Now — Free Eligibility Check.

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Important: UK Business Loans is an introducer — not a lender. The enquiry is for matching purposes and is not a loan application. Loan terms, fees and credit checks are provided by the lender or broker you choose to deal with directly.

Further reading: visit the Solicitors Regulation Authority for client money and PI requirements, and HMRC guidance on business records if you need help preparing documents.

1. Will applying affect my credit score? — Submitting an enquiry via UK Business Loans will not affect your credit score, though matched lenders may perform soft or hard checks later if you choose to proceed (and they will tell you which).

2. Can I use client account money as security for a solicitors’ business loan? — No — client account funds are ring‑fenced under SRA rules and are not acceptable collateral, so lenders look to other assets, invoices or unsecured options.

3. Do I need Professional Indemnity (PI) insurance to qualify for solicitors’ business loans? — Yes — most lenders require current PI insurance and will ask to see your certificate before advancing funds.

4. What minimum trading history do lenders usually require for a law practice? — Typically lenders expect 6–12 months’ trading for smaller facilities and around 18–24 months (or 2+ years) with statutory accounts for larger loans.

5. How much can a solicitors’ practice borrow? — Through our network practices can usually access loans from about £10,000 up to multi‑million sums depending on lender, security and purpose.

6. What documents will lenders request when applying for a solicitors’ loan? — Commonly requested documents include 12–24 months of management accounts, business bank statements, VAT/CT filings, PI certificate, SRA registration, director ID and details of any security or key matters.

7. Can firms with bad credit or regulatory issues get funding? — Possibly — specialist lenders and brokers may offer options like asset‑backed lending, invoice finance or bridging, but undisclosed regulatory investigations, major tax arrears or recent bankruptcies are frequent deal‑breakers.

8. What types of finance suit solicitors and legal firms? — Law firms commonly use business loans, invoice finance (factoring/discounting), bridging finance, asset/equipment finance and practice‑acquisition facilities tailored to legal practices.

9. How quickly will a lender or broker contact me after I submit the free eligibility check? — You can often expect contact within hours and preliminary quotes within 24–72 hours, with full approval times varying by lender and documentation.

10. Is the UK Business Loans enquiry a loan application and does it cost anything? — No — the short, free enquiry is not a loan application or obligation; it simply lets us match your firm with suitable FCA‑regulated lenders and brokers.