Securing law firm funding for yourself or your business can be challenging at any time. But in a recession, securing funding with a high street bank can feel near impossible.
With low appetite to lend and falling approval rates, it’s no secret that law firm loans approved from high street banks are getting increasingly difficult to obtain. Business loans provided by major banks are often secured, and the process of application is typically arduous. This delay can be frustrating, as well as halting the injection of your cash flow.
When do law firms typically require loans?
With the competitive nature of law firms and the rising costs associated with running legal businesses, law firms typically need funding when they’re looking to grow. Law firm loans can help you scale your business by purchasing new software for increasing efficiency, hiring new solicitors or paralegals, and undertaking marketing activity.
A bespoke business development loan can help your law firm to thrive during its period of growth.
Alternatively, law firm loans are often required when seasonal trends cause dips in income. To help get over temporary cash flow hurdles, VAT funding for the legal sector can help to offer stability and reduce the risk of HMRC penalties.
Having a comfortable amount of working capital is essential for the success of your law firm.
Who is eligible for a VAT loan?
Businesses eligible for a VAT loan are any firm who collect VAT on behalf of HMRC. At Acorn Business Finance, we can arrange for the finance to be paid to directly to HMRC if you’re a Ltd entity, partnership, LLP or a sole trader, as well as directly to the firm its self.
To be eligible for a VAT loan with our portfolio of approved lenders, your law firm must:
- Be VAT registered
- Have a turnover of more than £500,000
- Be based in the UK
- Have been trading for more than 2 years
How do unsecured VAT loans for the legal sector work?
With our VAT funding solutions, short-term VAT loans (spread over three months) are unsecured. As our lenders don’t require collateral to free up your funding, you can feel confident in taking out funding to free up your cash flow for your firm.
A tax loan to help fund other HMRC liabilities can also be taken out, such as:
- Income tax
- Corporation tax
- Capital Gains tax
- PAYE and NI for employees
Contact us
VAT loans are one the most common types of loan for the legal sector.
We work with you to find out your goals so that we can offer the best funding for your business.
With our Secure Customer Portal, customers can get their funding approved swiftly with our lenders. To find out more about how we can help you, please contact us on on +44 (0) 1242 395507 or email hello@acornbusinessfinance.co.uk
