Are invoices for professional services (accountancy, legal) eligible for invoice finance?

Summary / Quick answer

Yes — many invoices issued by accountancy and legal firms can be funded with invoice finance. Eligibility depends on the debtor (who owes the money), the invoice terms, and any professional-specific restrictions (for example, monies held in solicitors’ client accounts are normally excluded). Invoice finance products and lender appetite vary, so the quickest way to confirm eligibility and get personalised options is to request a Free Eligibility Check: Get Quote Now. Remember: our enquiry form is not an application — it simply helps us match your firm to the most suitable lenders or brokers.

What is invoice finance?

Invoice finance unlocks cash tied up in unpaid invoices so your firm can access working capital immediately rather than wait for client payments. Two main types:

• Invoice factoring — a provider buys or advances against unpaid invoices and often handles collections.
• Invoice discounting — you retain control of collections while borrowing against your invoices as collateral.

Professional services use invoice finance to smooth cashflow (payroll, counsel fees, or seasonal expenses), support growth and avoid short-term overdraft stress. Lenders who specialise in professional services understand billing cycles, staged fees and confidentiality needs.

Are accountancy invoices eligible?

Accountancy firms commonly qualify for invoice finance when their invoices meet standard funder requirements. Typical scenarios that work well:

• Invoices issued to corporate clients, limited companies or other businesses with verifiable credit histories.
• Clear fee notes for completed work or properly staged invoices backed by engagement letters.
• Regular, recurring billing cycles — predictability increases lender appetite and improves advance rates.

Key points for accountants:

• Work-in-progress (WIP) is usually not funded until billed as an invoice, although some lenders accept staged invoices when backed by signed engagement letters.
• Private individual / consumer invoices tend to be less attractive and may attract lower advance rates.
• Advance rates for strong corporate debtors are typically 70–85% of an eligible invoice value.

Example: a practice raises a £20,000 invoice to a limited company for year-end accounts. A specialist lender might advance 75–80% quickly, with the balance returned (less fees) when the debtor pays.

Are legal / solicitor invoices eligible?

Legal firms can access invoice finance, but there are important sector rules to navigate. Lenders who work with law firms are familiar with the key constraints and can design compliant facilities.

Commonly eligible items

• Fee invoices raised to corporate clients, insurers or third-party payers (not monies held in client accounts).
• Interim invoices for work already completed and billed to a non-client-account payer.

Common complications

• Client account balances: Funds held in a solicitor’s client account are typically not available as security and lenders will not lend against client-account funds.
• Contingent fees: No-win-no-fee or outcome-dependent invoices are generally ineligible for standard invoice finance because payment is uncertain. Some specialist funders assess these on a case-by-case basis but expect higher costs/restrictions.
• Confidentiality & data protection: Funders experienced in the legal sector use bespoke processes to protect client confidentiality and maintain professional conduct.

Specialist legal funders may offer selective factoring, spot factoring or bespoke lines that respect solicitors’ rules — speak to a sector specialist to identify compliant structures.

Eligibility checklist — what lenders look for

Before approaching funders, check these common requirements:

• Debtor identity: Invoices owed by corporate entities, government bodies or insurers are preferred.
• Invoice clarity: Date, amount, payment terms, and description of services delivered.
• Invoice age: Most funders prefer invoices under 60–90 days, though specialist funders may accept older invoices.
• No disputes: Disputed or conditional invoices are usually excluded.
• Supporting paperwork: Engagement letters, contracts or confirmations that support the invoice value and terms.
• Business finances: Management accounts, turnover and information about existing funding lines.
• Minimum facility size: Many partners expect facilities for invoices and loans from around £10,000 upwards.

Typical pricing & terms

Costs and terms vary with sector, debtor quality and product. Typical expectations:

• Advance rates: 70–90% for eligible invoices (depends on debtor strength).
• Discount/factoring fees: Often 0.5%–3% of invoice value per month (or a comparable annualised rate) plus set-up or facility fees.
• Reserve / holdback: A portion of the invoice may be retained until the debtor pays, to cover fees and potential bad debt.
• Recourse vs non-recourse: Recourse means you remain liable for unpaid invoices; non-recourse shifts bad-debt risk to the funder but is more expensive and limited to insured debtors.
• Contract length and onboarding: Some facilities are rolling month-to-month; others require a minimum term. Onboarding can take a few days to a couple of weeks depending on checks.

Common exclusions & red flags

• Funds held in professional client accounts (e.g., solicitors’ client accounts) — usually excluded.
• Contingent or outcome-dependent fees (e.g., some litigation success fees).
• Invoices to private individuals — many funders avoid consumer debt.
• High dispute rates, slow-paying debtor profiles or invoices with long milestones/retentions without clear billing.

How UK Business Loans helps

UK Business Loans connects professional-services firms with specialist lenders and brokers who understand the nuances of accountancy and legal billing. We are an introducer — we do not lend. Our service is free and no obligation.

How it works:

1. Complete our short enquiry form (it’s not an application — just information to match you): Free Eligibility Check — Get Quote Now.
2. We match you to lenders or brokers with sector experience and the right product fit.
3. Receive personalised quotes and next steps — typically within hours or a few days depending on checks.
4. Choose a partner and the broker/lender will progress the application and carry out due diligence.

We only need a few details to make an accurate match. The enquiry is designed to save you time and increase the chance of a suitable offer.

Preparing to apply — quick checklist

Before requesting quotes, gather:

• Recent invoices and an aged debtor list.
• Engagement letters or client contracts.
• Latest management accounts and recent bank statements.
• Details of any existing finance or security in place.

Having documents ready speeds up matching and decision-making.

Short case examples

Accountancy practice: A 12-staff firm with seasonal peaks used invoice discounting to advance 80% of billed work to cover payroll during busy periods and to hire a trainee.

Solicitors’ firm: A commercial litigation practice used selective factoring for corporate client invoices (not client-account funds), allowing them to fund counsel fees and meet short-term cash needs ahead of settlement.

FAQs

Can solicitors use invoice finance?

Yes, where invoices are owed by third parties rather than funds held in client accounts. Specialist funders can advise on compliant structures.

Are no-win-no-fee invoices eligible?

Most standard funders will not accept contingent/unconditional outcome-dependent fees. Some specialist funders may consider them with stricter terms and higher costs.

Will applying via UK Business Loans affect my credit score?

No — submitting an enquiry through our form does not affect your credit file. Lenders or brokers may carry out checks only if you proceed with a formal application.

What’s the minimum facility size?

Our partners typically provide facilities from around £10,000 and upwards. If you need less, speak to a broker to explore alternatives.

If you’d like to test eligibility and get tailored quotes from lenders and brokers who specialise in professional services invoice finance, start a Free Eligibility Check — it takes a few minutes and is not an application: Get Quote Now.

For more detailed information on the product types and how they apply to firms like yours, see our guide on invoice finance.

Important: UK Business Loans introduces businesses to lenders and brokers; we do not provide finance or regulated financial advice. The enquiry form is used to match you with partners who will contact you with personalised terms and next steps. Completing the form does not guarantee funding and does not affect your credit score.

1. Can solicitors use invoice finance?
Yes — solicitors can use invoice finance for invoices owed by third parties (not client account funds), with specialist funders able to structure compliant facilities.

2. Are accountancy invoices eligible for invoice finance?
Yes — accountancy invoices billed to corporate clients or other businesses are commonly eligible, especially when supported by engagement letters and predictable billing cycles.

3. What types of invoice finance are available for professional services?
The main types are invoice factoring (provider handles collections) and invoice discounting (you retain collections), plus selective or spot factoring for sector-specific needs.

4. Will submitting an enquiry affect my credit score?
No — completing UK Business Loans’ enquiry form is not an application and does not affect your credit file; lenders may only carry out credit checks if you proceed.

5. How quickly will I get matched to lenders and receive quotes?
You can typically expect a response within hours to a few days after submitting the free enquiry as we match you with specialist brokers and lenders.

6. What invoices are usually excluded from invoice finance?
Common exclusions include funds held in solicitors’ client accounts, contingent/no‑win‑no‑fee invoices, consumer (private individual) debts and disputed invoices.

7. What advance rates and costs should professional services firms expect?
Advance rates typically range from about 70–90% for strong corporate debtors, with factoring/discounting fees often around 0.5%–3% per month plus possible set‑up and facility fees.

8. Is non‑recourse invoice finance available for legal or accountancy firms?
Non‑recourse is possible but limited and more expensive, usually only offered where invoices are insured or meet strict debtor criteria, whereas recourse facilities are more common.

9. What minimum facility size and documentation do lenders usually require?
Many partners expect facilities from around £10,000 upwards and will ask for recent invoices/aged debtors, engagement letters/contracts, management accounts and bank statements.

10. How does UK Business Loans help me find the right invoice finance option?
We’re a free introducer that matches your enquiry (not an application) to trusted, FCA-regulated brokers and lenders who specialise in professional‑services invoice finance and will provide personalised quotes and next steps.