What is a legal practice loan?
A legal practice loan is a form of business finance that can be used by law firms or solicitors to grow their business, cover an unexpected cost, or simply provide a cash flow boost. Finance for legal practices can come in the form of an unsecured or secured business loan with varying rates and repayment terms. Fleximize's legal finance products can be tailored to the specific needs of your business, whether you're a sole practitioner or run a multi-partner firm.
What types of law firm loans are there?
Just like with traditional banks, alternative finance options for legal practice loans can be either secured or unsecured.
Unsecured business loans are usually quicker to be funded as they don't require any assets to be valued for security. You may, however, need to provide a personal guarantee if you take out an unsecured business loan and the interest rates might be slightly higher, too. With Fleximize, you could have an unsecured legal loan funded in as little as 24 hours.
Secured loans, on the other hand, can come with lower interest rates because you'll need to put up an asset as security against the loan. They're a good option if you haven't yet built up a strong credit history for your legal firm, but can take slightly longer to approve due to the fact that your assets will need to be valued. At Fleximize, however, we can fund secured loans in as little as 48 hours. It's also worth considering that secured loans can come with longer terms, which mean that you'll have more manageable monthly repayments.
Fleximize's multi-award-winning legal loans can be offered on both a secured and unsecured basis, and our team will be able to talk you through which products are best suited to you. We'll also be able to tailor your loan term to meet your business' needs.
How can solicitor finance be used?
With the coronavirus pandemic causing delays in courts, more and more law firms are turning to flexible legal practice loans in order to help bridge the gap between taking on a case and receiving payment from the court. Using a legal practice loan to tide your business over during this time means that your cash flow can stay stable and that you have ample working capital to run your business.
Many law firms across the UK often use business finance in order to cover the cost of hiring new staff, purchasing cases or spreading the cost of a tax payment into more manageable chunks. Law firms may even take out a small business loan to purchase another legal firm for growth, or simply so that they have working capital available to run their business. Loan purposes for legal firms can also include:
The key features of Fleximize’s legal practice loans
Fleximize's award-winning loans for solicitors can be deposited into your account within just 24 hours. Here's a quick look at the key details:
- Legal business loans of £5,000 – £500,000 repaid over 3 – 48 months
- Speedy online application with minimal paperwork
- Approval and funding in as little as 24 hours
- No hidden fees or early-repayment penalties
- Interest charged on a reducing balance, not the total loan amount
- Repayment holidays and top-ups available with all loans
- Competitive interest rates starting from 0.9% per month
More specifically, Fleximize's Flexiloan Lite is great for short-term financing, with 3-12 month terms and is available to businesses who have been operating for 6 months or longer. The Flexiloan is available on terms of 12-48 months and is available to businesses trading for 12 months and longer. So whether you're six months into setting up your legal practice or an established multi-partner firm, our team will be able to create a bespoke funding package tailored to your specific needs.
Does my legal practice qualify for a loan with Fleximize?
At Fleximize, our flexible lending criteria means we won’t automatically dismiss a company with an inconsistent credit history. We take the unique circumstances of every business into account. You could apply for a legal business loan with Fleximize if:
- You’re a limited company or LLP.
- Your business is based in England or Wales. We can offer an unsecured loan of up to £250,000 if you’re based in Northern Ireland or Scotland.
- You’ve been trading for at least six months.
- You have a minimum monthly turnover of £5,000.
If you’re a sole trader or a non-limited partnership with less than four partners, we can lend a minimum of £25,000. So if your business has been trading for six months or longer, feel free to give our team a call to discuss which of our products would best suit you.
Why apply for legal practice finance with Fleximize?
There are many reasons why Fleximize is the perfect funding partner for your legal practice, including:
- We’re recommended: Our customers named us Best Business Finance Provider at the British Bank Awards twice and rate us ‘Excellent’ on Trustpilot. Read our customer stories and learn about our awards.
- We’re fast: Apply online in minutes and receive finance for your law firm in as little as 24 hours.
- We’re flexible: There are no hidden fees and you can repay early at no extra cost. We also offer top-ups and repayment holidays as standard, too.
- We’re personal: Your dedicated relationship manager will get to know your needs and make sure your funding is tailored specifically to your loan purpose, whether that's hiring more staff, purchasing a case from another law firm, or bridging the gap in payment terms due to court delays. With repayments, you can also go for long terms or short terms, depending on what suits your business.
How to apply for a legal business loan
Our legal practice loans are quick and easy to apply for and our team have many years of experience working with corporate law firms. There's no need for lengthy appointments or time-consuming paperwork - just complete our short online form with a few basic details to get started.
Our process is quick, easy and fuss-free:
- Apply online in minutes
- Get a decision in 24 hours
- Receive your funds
Someone from our team will get in touch to explain what’s next if you pass our initial checks. Once we have everything we need, you could get approved and receive your loan on the same day. Visit our FAQs page, browse our legal funding options, or feel free to call us on 020 7100 0110 if you have any questions in the meantime.