What secures a firm with no assets
Lenders to professional practices underwrite recurring fee income, the quality of the client base and the stability of the partner or shareholder group. Work in progress and billed receivables provide the collateral. Property and plant rarely feature.
That makes reporting quality decisive. A firm that can show billing, recovery rates, lock up days and client concentration in a clean monthly pack is far more fundable than one that cannot, regardless of profitability.
Lock up is the core problem
Lock up, the total of unbilled work in progress plus unpaid invoices, absorbs most of the cash in a professional firm. Reducing it by even ten days often releases more cash than any facility.
Where it cannot be reduced quickly, receivables funding against billed fees bridges the gap. Some specialist funders will also advance against work in progress for firms with predictable billing cycles.
Partner capital and buy ins
New partners are usually required to introduce capital. Personal partner capital loans are a standard product, repaid from drawings over a set term, and are assessed on the individual and the firm together.
On the firm side, retiring partner capital repayment often needs a term facility so the cash outflow does not fall entirely on one financial year.
Acquisitions and consolidation
Consolidation is active across accountancy, legal and advisory sectors. Acquisition debt for practices is normally sized on maintainable earnings with an earn out component to bridge value and to keep the selling principals engaged.
Lenders test client retention risk closely, since the assets walk out of the building every evening. A retention plan, service agreements and a handover period materially improve the terms available.
Technology and premises
Practice management systems, artificial intelligence tooling and office fit out are all financeable over three to five years, spreading cost across the period the investment delivers benefit rather than hitting one year of partner profit.
Frequently asked questions
Can a partnership borrow without personal guarantees?
Sometimes at larger scale with strong reporting. Below that, partner support is usually part of the package.
Is work in progress fundable?
Yes with specialist funders where billing patterns are consistent, though advance rates are lower than on billed invoices.
How is an acquisition of a practice priced?
Commonly a multiple of maintainable earnings or recurring fees, with part of the consideration deferred against retention.
Last reviewed: 2026-09-01