How do I finance an accounting or law firm?
Accounting and law firms usually borrow against their income rather than their assets, because a practice owns very little a lender could sell. A strong recurring fee base works in their favour. Lenders look at fee retention, work in progress and the spread of clients, then lend on cash flow with a personal guarantee sitting behind it. Partner buy ins and practice acquisitions bring most of these firms to us.
How a practice is assessed
Recurring revenue is the asset. A compliance heavy accounting practice with a stable client list is viewed very differently to a firm relying on one large matter. Lenders look at fee income across several years, client concentration and how much of the work would survive a principal leaving. Work in progress and unbilled fees count too, although they are usually discounted heavily because a lender cannot collect them itself. Some funders will lend against a fee base as security. Most still want a guarantee from the principals.
Facilities these firms use
Practice acquisition and partner buy in funding is the big one, generally structured as a term loan over several years and serviced from the fees the incoming partner brings with them. Beyond that, an overdraft or line of credit smooths the gap between doing the work and getting paid, which in professional services can stretch for months. Invoice finance suits firms billing corporate clients on terms. Fit outs and practice management software go on equipment finance. Your own adviser should confirm how the structure sits for tax.
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Last updated 15th July 2026. Reviewed by Authorised Credit Representative 554584 of Australian Credit Licence 414426.