Summary (quick answer)

Unsecured business loans let law firms borrow capital without offering property or fixed assets as security. They are commonly used to bridge client-receivable timing, cover disbursements, support payroll, and fund short-term investment in technology or premises. Expect quicker decisions than secured finance but typically higher costs and possible requests for personal or partner guarantees. For tailored, no‑obligation quotes from lenders and brokers who work with legal practices, start a free eligibility check: Get Quote Now — Free Eligibility Check.

Why unsecured loans matter for solicitors

Cashflow in legal practices can be lumpy: client settlements and disbursements often don’t line up with payroll, rent and supplier payments. An unsecured loan can bridge a timing gap quickly without the need to remortgage or charge business premises. That speed and simplicity is why many small and mid-sized law firms consider unsecured options first when they need working capital of £10,000 and above.

Get Quote Now — Free Eligibility Check (free, confidential — the form is an enquiry, not an application).

What are unsecured business loans?

Unsecured business loans are loans given on the basis of the business’s financial profile rather than a charge over land, property or specific assets. Lenders rely on:

• cashflow and trading performance;
• management accounts and turnover;
• company and director credit history;
• professional practice documentation (where applicable).

Common unsecured formats include short- and medium-term term loans, business lines of credit, and some bridging loans or advances. Merchant cash advances or revenue-based facilities are also typically unsecured but work very differently and often cost more.

Pros and cons

• Pros: no property or fixed-asset security required, faster decision times, suitable for urgent cash needs.
• Cons: generally higher interest and fees than secured loans; lenders may request personal or partner guarantees; borrowing limits can be lower.

Important: UK Business Loans is an introducer — not a lender. The enquiry form is used to match your firm to suitable lenders or brokers and is not a loan application.

Why solicitors use unsecured loans

Law firms commonly choose unsecured lending for these situations:

• Bridge receivables and cover disbursements: quick capital while waiting for client settlements.
• Payroll & temporary staffing: cover seasonal peaks or new matter costs.
• IT upgrades and practice management software: roll-out costs that support long-term efficiency.
• Office fit-out or relocation: short-term funding to complete a move or refurb.
• Partner buy-outs or working capital for an acquisition: smaller acquisitions or partner transitions where property security isn’t desirable.
• Unexpected tax/VAT timing issues: manage spikes without disrupting operations.

Alternatives such as invoice finance, asset finance or overdrafts may suit some of these needs better — we’ll outline those later.

Common terms and features solicitors should expect

Loan amounts

Typical unsecured loan ranges vary by lender and firm size. Through our panel, unsecured loans and facilities commonly start at around £10,000 and can extend into mid-six figures depending on turnover and security arrangements.

Rates & APR

Unsecured business borrowing is usually priced higher than secured finance. Lenders will supply both an interest rate and a representative APR (which includes fees). Always ask for a full breakdown of interest, arrangement fees, any renewal or exit fees and how APR is calculated.

Term lengths & repayment

• Short-term: 3–24 months — common for bridging or working capital
• Medium-term: 2–5 years — for investment in IT or fit-out
• Repayment structures: monthly capital & interest instalments, interest-only periods, bullet repayments or revolving lines where you draw as needed

Fees

Watch for arrangement fees, legal fees, early repayment charges and late payment penalties. Small arrangement fees are common and should be reflected in any quote.

Security, covenants & guarantees

Although the loan is described as unsecured, lenders may still request director/partner guarantees or ask for a general charge (debenture) in some cases. Ask for written confirmation of exactly what security is required—never assume “unsecured” means zero recourse to directors.

Eligibility checks

Lenders usually require a minimum trading history, recent company accounts, bank statements and may run company and director credit checks. Professional indemnity and the firm’s handling of client money are important due diligence points.

Get Started — Free Eligibility Check to see indicative terms for your firm from lenders/brokers who understand legal practices.

Key considerations specific to solicitors & legal firms

Client money and regulatory arrangements

Client funds are typically ring-fenced under professional rules. Lenders will want to understand how client accounts are managed because they rarely take client-ledger balances as collateral. Be transparent early about client money and SRA (or applicable regulator) arrangements.

Receivables from conditional fees or CFAs

Future case-based receivables (e.g., CFAs, contingency fees) are viewed as higher risk because payment depends on case outcomes. Some lenders specialise in funding practices with predictable, billed work; others will decline.

Personal & partner liability

In partnerships or LLPs, some lenders may insist on partner guarantees. Understand the personal liability you or other partners could take on and negotiate where possible.

Confidentiality & data required

Lenders will request accounts, bank statements and matter-level information. Confirm how that data will be handled — UK Business Loans passes details only to selected partners to obtain quotes. The enquiry is confidential and not a formal application.

Risk management checklist

• Request full written terms and APR breakdowns.
• Clarify any requested security or guarantees in writing.
• Check early repayment and exit fees.
• Compare multiple offers — different lenders price legal practices differently.
• Ask your accountant or legal adviser about tax and balance sheet treatment.

How UK Business Loans helps solicitors

We are an introducer. Complete a short enquiry and we’ll match your firm with lenders and brokers most likely to offer suitable unsecured business finance. The process is:

1. Complete the short enquiry form (takes 2 minutes).
2. We match you to relevant lenders/brokers based on sector and needs.
3. Matched partners contact you with bespoke quotes and next steps.

Our service is free to use and non‑obligatory — the enquiry is not an application. Typical loans we help arrange start at £10,000 and above. Free Eligibility Check — Get Quote Now.

Short anonymised example

Example: A four-fee-earner practice needed a short bridge to cover disbursements on a large conveyancing settlement. Through our matching process they received three unsecured options. They accepted an unsecured short-term loan of £30,000 with a 12‑month term and modest arrangement fee; funds were released in 48 hours once documents were signed. No property security was required, but a director guarantee was taken.

Want a similar rapid quote? Start your free enquiry.

Alternatives to unsecured loans

Consider these alternatives depending on your firm’s situation:

• Invoice finance / factoring: unlock cash from billed invoices — useful if you have a steady ledger of billed work.
• Asset finance: fund IT or office equipment with the asset as security.
• Bank overdraft / revolving credit: flexible short-term buffer if your bank relationship supports it.
• Secured loans / commercial mortgages: lower-cost option for larger amounts where property security is acceptable.
• Partner loans or internal arrangements: may be appropriate for short-term internal bridging.

If you’re unsure which route fits best, our enquiry helps identify the options lenders/brokers think are most suitable.

FAQ — quick answers

Will applying affect my firm’s credit score?

Filling our enquiry form does not affect credit scores. Lenders may perform checks only if you progress to an application with them.

How fast can funds be available?

Some unsecured lenders can fund within 24–72 hours; others take longer depending on checks and documentation. Your matched partners will provide expected timelines.

Are personal guarantees common?

Yes — director or partner guarantees are commonly requested for unsecured lending, particularly where firm assets are limited.

Can a lender use client money as security?

Lenders are usually cautious about client accounts due to regulatory rules. Provide clear details early so lenders can assess.

What documentation is typically required?

Recent company accounts, business bank statements, ID for directors/partners, and details of outstanding invoices or disbursements are commonly required.

How much can I borrow unsecured?

Through our panel, unsecured borrowing commonly begins around £10,000 and can rise to mid-six figures depending on firm size and profile.

Next steps — get a free eligibility check

If your practice needs short-term working capital, bridging or an investment loan without charging property, start with a free, confidential enquiry. It’s not an application — it just helps us match your firm with lenders/brokers who can provide quotes.

Get Quote Now — Free Eligibility Check

We are not a lender. We are an introducer and do not provide regulated financial advice. All lending decisions and terms are provided directly by lenders or brokers.

Author: UK Business Loans content team. Last reviewed: 29 October 2025.

Related resources

• How UK Business Loans works
• Invoice finance
• Accountancy & Professional Services loans
• Types of finance
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• Terms & Conditions
• Industry page: solicitors business loans