Solicitors Business Loans — What WIP, Aged Debtor and Fee Ledger Details Lenders Want

Summary: Lenders and brokers assessing solicitor practices look for clear, date-stamped WIP exports, a clean aged debtor (AR) report with ageing buckets and notes on disputes/collection activity, and detailed fee/client ledger extracts showing receipts, trust transfers and reconciliations. Preparing tidy, reconciled spreadsheets and a short cover note explaining large matters, disputed invoices and likely recoverability speeds decisions and increases funding options. Get Quote Now for a free eligibility check and match to lenders who specialise in solicitor finance.

Why lenders request WIP, aged debtor and fee ledger details

Lenders and brokers ask for WIP, aged debtor lists and fee ledgers because these reports show the law firm’s true working capital position and the realisable value of its receivables. WIP indicates unbilled work that may convert to invoices; aged debtors show cash collection timing and bad-debt risk; fee ledgers reveal client payment behaviour and trust account flows. Together these documents let lenders assess cashflow, concentration risk (large clients or matters), recoverability of WIP, and trust-account controls.

Typical finance providers include specialist law-firm lenders, invoice financiers, and mainstream banks or broker-arranged panels who understand solicitor billing cycles. UK Business Loans connects practices with lenders and brokers experienced in solicitor finance. Free Eligibility Check

Quick checklist: the documents lenders nearly always ask for

• WIP schedule / WIP report (dated export)
• Aged debtor list (AR) with ageing buckets (0–30, 31–60, 61–90, 90+)
• Fee/client ledger extracts (showing receipts, transfers, trust movements)
• Copies of key retainer letters or high-value client instructions
• Recent management accounts & bank statements (3–6 months)
• Trust account reconciliations and client money evidence (if applicable)
• AR ageing by matter: invoice date, amount, due date, matter reference

Note: Lenders expect secure transfer of data and appropriate solicitor sign-off or client consent for any sensitive information.

WIP (Work In Progress) — what lenders want, and how to present it

WIP in the solicitor context is time recorded but not yet billed, plus disbursements and any retained amounts that offset likely invoices. Lenders treat WIP as a potential receivable — but only if it’s collectible and supported by evidence.

Key WIP items lenders typically require:

• Matter reference and client name (or redacted identifier where confidentiality is required)
• Brief description of work / matter stage and estimated completion date
• Value of unbilled time (hours × rate) and separate disbursements
• % complete or internal recoverability assessment (High / Medium / Low)
• Any retainer, deposit, or prepaid sums held
• Provision amounts or proposed write-downs
• Responsible fee-earner/partner and date-stamp of export

How to present WIP for fastest review:

• Export from your case management system (LEAP, Elite, CLIO, etc.) into a dated Excel/CSV.
• Separate entries by recoverability rating and highlight matters that individually make up a large % of total WIP.
• Include a one-page cover note summarising the top 5 matters, retainer status and any disputed work.
• Date-stamp and show who produced the report (practice manager or partner).

Sample column headings lenders expect (example table): Matter ref | Client | Description | WIP value | Disbursements | % complete | Retainer held | Responsible partner | Export date

Common lender questions about WIP

• Can you provide time entries or evidence of work done on large matters?
• Is a retainer or payment schedule in place for this matter?
• Are there any client disputes, capped fees or contingent success fees?

Aged debtor (accounts receivable) requirements: lenders’ expectations

The aged debtor report shows invoices outstanding and how long they’ve been unpaid — a critical indicator of cashflow and collection performance. Lenders want a clear, filterable report, ideally exported from Xero, Sage, IRIS or your practice accounts system.

What to include in your aged debtor report:

• Invoice number, matter ref, client name (or redacted ID), invoice date, due date, net amount and VAT where applicable
• Days outstanding and ageing bucket (0–30, 31–60, 61–90, 90+)
• Breakdown by client and by matter
• Collection activity notes (emails sent, calls, letters before action) against aged items
• Indicator for disputed invoices and commentary on recoverability
• Concentration metrics — top 10 clients as a % of total AR

Presentation tips:

• Provide a clean Excel/CSV with filters and a one-page summary showing totals by bucket and % over 90 days.
• Tag invoices that could be offered to invoice finance (no ongoing dispute, client creditworthy).
• Add short commentary for any long-dated balances explaining collection plan or expected cash-in date.

Compliance note: Do not share client-sensitive personal data without checking professional obligations; redacted extracts or secure portals are acceptable to most lenders.

Fee ledger (client ledger) — what lenders expect and why it helps

The fee or client ledger shows inflows and outflows on each matter and the movement of client money. Lenders use this to verify cash collection history and to ensure trust account controls are robust.

What to provide from fee ledgers:

• Detailed client ledger extract for larger matters and a firm-wide ledger summary
• Receipts, transfers to office, payments to suppliers/disbursements
• Bank reconciliation notes and dates for client/trust accounts
• Evidence that client monies are ring-fenced and regularly reconciled
• Any bounced or uncleared payments flagged with explanation

Presentation tips:

• Provide annotated extracts: mark transfers from client to office account and note the date and authority (invoice number or retainer).
• Supply trust reconciliations alongside the fee ledger where client money is involved.

Additional documents and red flags lenders will check

• Recent management accounts (monthly/quarterly) and underlying aged WIP vs billed conversion statistics
• Bank statements (3–6 months), emphasising trust accounts
• History of WIP write-offs and bad debt provisions
• Details of any charges, outstanding loans or fixed charges on receivables

Major red flags include: unusually high WIP relative to billed amounts, many long-unpaid invoices, trust account discrepancies, or excessive concentration risk (one client > 20–30% of AR).

How to prepare your WIP, aged debtor and fee ledger extracts — step by step

1. Run standard exports from your case management and accounting systems — date and save as CSV/Excel.
2. Reconcile WIP totals to the management accounts and explain timing differences.
3. Annotate aged debtor report with collection status: collected, in dispute, on payment plan.
4. Prepare a short cover note: top 5 matters, largest debtors, expected cash-in dates and any client consents obtained.
5. Share files securely — use an encrypted portal, secure file transfer or password-protected link. Redact client IDs if necessary and indicate redactions in your cover note.

What lenders will ask a solicitor during credit assessment

• WIP conversion rate (how quickly unbilled time becomes billed and collected)
• Average debtor days and billing frequency
• Major clients and concentration by % of revenue/AR
• Trust account controls and reconciliation process
• Any current or recent client disputes or fee-earner churn on key matters

Practical examples & case studies (anonymised)

Example A — Regional conveyancing firm: needed short-term bridging between completion and payment. Lender required a dated WIP extract (highlighting three near-completion matters), aged debtor list and trust reconciliation. Funding approved quickly once top matters and retainer positions were documented.

Example B — Mid-size commercial practice: sought invoice finance against billed invoices. After cleaning the aged debtor list (resolving disputed items and providing collection evidence), the firm secured a facility covering a percentage of eligible invoices and improved cashflow within days.

Compliance & confidentiality — what you must check before sharing

Before sharing any client-related documents confirm SRA client money rules and your own confidentiality obligations. When in doubt, obtain client consent or provide redacted extracts with a solicitor’s cover letter explaining redactions. Use secure transfer methods and log who has accessed the information. UK Business Loans acts as an introducer and can advise which lenders/brokers routinely accept redacted extracts.

Next steps — get a free eligibility check and quick quotes

Ready to see what funding your practice could access? Complete a short, no-obligation enquiry and we’ll match you to specialist lenders and brokers for solicitor finance. Typical fields: firm name, annual turnover, funding required (£), brief description (WIP-led, invoice finance, or other) and contact details. Get Quote Now — Free Eligibility Check

Frequently asked questions

Will sharing WIP breach client confidentiality?

Not if you follow SRA rules: obtain consent where required, redact client-sensitive details and use secure channels. Lenders commonly accept redacted extracts plus a solicitor’s confirmation letter on the matter.

Can I get funding against unbilled WIP?

Yes — some specialist lenders offer WIP financing if recoverability is strong. They will need detailed WIP extracts, evidence of work done and commentary on likely billing and collection dates.

How long until I get a quote?

If you provide clean, dated WIP/AR/ledger extracts and recent management accounts, introductions from an introducer often lead to lender/broker responses within hours to one working day. Clear, annotated reports speed this up.

Do you charge for introductions?

Our service is free for businesses completing the enquiry form; we introduce you to lenders and brokers who can provide quotes. Any fees for finance are agreed directly between you and the lender or broker.

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One contextual resource: For a broader overview of solicitor-specific funding options and how lenders assess legal practices, see our partner resource on Solicitors business loans.

1. What types of finance can solicitors get through UK Business Loans (e.g., WIP funding, invoice finance, bridging)?
– UK Business Loans connects solicitors to lenders and brokers who offer WIP financing, invoice finance, short-term bridging and other business loan solutions tailored to law firms.

2. Can I get funding against unbilled WIP or only against billed invoices (AR)?
– Some specialist lenders will fund unbilled WIP if you can supply dated WIP exports, evidence of work done and commentary on recoverability, while invoice finance covers billed AR.

3. What documents do lenders require for a solicitor business loan or invoice finance facility?
– Lenders commonly ask for a dated WIP schedule, aged debtor (AR) list with ageing buckets, fee/client ledger extracts, recent management accounts, bank statements and trust reconciliations.

4. Will sharing WIP, fee ledger or aged debtor details breach client confidentiality?
– Not if you follow SRA rules: obtain client consent where necessary, redact sensitive details, supply a solicitor’s cover letter and use secure file transfer or portals.

5. How quickly can I expect to receive quotes after submitting documents or an enquiry?
– If you provide clean, dated WIP/AR/ledger extracts and recent management accounts, lenders or brokers typically respond within hours to one working day.

6. Does submitting a free eligibility enquiry on UK Business Loans affect my business credit score?
– No — completing the free enquiry to match you with lenders is not a credit application and won’t affect your credit score, although lenders may perform checks later if you proceed.

7. Are there fees to use UK Business Loans or to receive introductions to lenders and brokers?
– Using UK Business Loans to get matched with lenders and brokers is free and no-obligation, but any lender or broker fees for finance are agreed directly with them.

8. What are common red flags lenders check for when assessing solicitors for funding?
– Lenders look for high WIP-to-billed ratios, many long-unpaid invoices, trust account discrepancies, excessive client concentration and a history of large WIP write-offs.

9. How should I present WIP, aged debtor and fee ledger extracts to speed funding decisions?
– Export dated CSV/Excel reports from your case and accounting systems, reconcile totals to management accounts, annotate recoverability and disputes, highlight large matters and include a one‑page cover note.

10. What range of loan amounts and lenders does UK Business Loans work with for solicitor practices?
– UK Business Loans introduces practices to a nationwide network of FCA-regulated brokers and lenders offering facilities from small working capital lines to multi‑million pound commercial finance depending on your needs.