Ask any Solicitor with their own firm, and they will tell you, running a law firm is expensive. Some of the most common expenses these businesses face are VAT, tax and indemnity insurance. Legal firms may also have to wait for months or even years to get paid, depending on the types of cases they take on. This means cash flow fluctuates, and practices have to be prepared to adjust.
Law firms that do not plan ahead may find themselves struggling with basic costs or unable to take on new clients. This results in lost opportunities and unhappy staff. That is why V4B Business Finance’s Professions division has worked to become a one-stop shop for legal firms that need financing.
We have been working with a specific law practice for some time, and our latest work included providing them with financing to cover their indemnity insurance premium and their VAT. We are also in talks to provide the financing they need to upgrade their IT systems and help with equity equalisation amongst the partners.
Because we work closely with this particular firm, we are able to respond to any needs they may have. This means they can quickly take advantage of our financing without having to endure a long application process or undue red tape. With financing on tap, they have to keep less of their assets liquid, and they are able to invest in their business more efficiently.
Loans For All Your Law Firms Needs
Our expert advisors were able to secure £80,000 of financing over 12 months. This came with low interest rates and no fees or guarantees so our client could pay their indemnity insurance premiums on a monthly basis for the full 12 months. We also set up a 3 month rolling VAT agreement that allows the firm to pay Value-Added Tax monthly so they can retain more capital in the practice. This rolling VAT agreement is flexible, so the firm can grow when it needs to without worrying about a larger VAT bill.
With its recurring costs covered and financing in place to streamline its cash flow, the firm is now considering working with us to upgrade its IT infrastructure. We are able to provide loans for everything from new computers and phone systems to software and mobile devices. This means your firm can improve its efficiency, take advantage of new tech and impress potential clients.
Results
We were able to get our clients the funding they needed for their VAT and indemnity insurance. We are now working with them on an equity equalisation facility to assist in the transfer of shares over to existing directors. Typically, we can offer up to 5 years for loans, but we can now access 7 years on an unsecured basis for this purpose. This means you can buy out directors, reallocate ownership or simply add new directors to a business without affecting cash flow.
Takeaways
Law firms often struggle with cash flow simply because of how their business works. That is why we offer various lending options to help them cover their expenses or reinvest in their business without having to keep large cash reserves on hand. A loan from our experts can be the perfect opportunity for any business, especially when you can use the cash infusion to improve your firm immediately.
If your business needs money to cover expenses or you are worried that expanding will hurt your cash flow, call us today, and we can help you find the money you need in no time and help expand your credit capacity as you grow in size.
At V4B Business Finance, we can offer loans to help your business buy new equipment, upgrade your IT or refurbish your current premises. This allows your company to retain its own money for longer so it can invest in staff or new projects.
What would you purchase for your company if you could unlock the money straight away?
- Fast access to funds
- Flexible payment options
- Dedicated account managers
- Smooth your cash flow
- No arrangement fees
- Great customer service
