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Partnership loans: How can Acorn help solicitors buy into/out of their law firms?

Becoming a partner in a legal practice is certainly a dream for many solicitors when they begin their career in the legal profession. However, one of the biggest challenges solicitors face when wanting to buy into a partnership is funding. 

A solicitor looking for a partnership capital loan can look to invest around £25,000-£250,000 into the partnership. Acorn have secured an exclusive credit line to provide partnership capital loans to our clients.

Solicitors also looking to buy out of their firms ahead of retirement can do so with a partnership capital loan.

Read on to learn about partnership loans for solicitors, and the process of applying with Acorn Business Finance. 

The benefits of becoming a partner in a law firm

For those taking the leap into partnership, the rewards can be substantial. 

According to the 2018 Law Society’s Management Section Survey, the median net profit per equity partner was £135,000 across 10,400 legal practices. On the top end of the scale, one of London’s elite law firms, Linklaters, announced that their 440 highest earning equity partners received £1.57m of the company’s profits. 

 

statue in law library

 

Why go through a broker for your partnership loan?

Many High Street banks are no longer offering partnership loans for firms set up as limited entities, as they deem this as funding for the purpose of acquiring shares under a regulated agreement. This means that if you’re looking to buy-in or out of a limited firm, you will have to find another funding solution. 

We understand that funding for solicitors is often a necessity, so after our initial chat, we can find the best flexible funding solution for you. This means we can find the right funding to align with your career goals or retirement plan.

Who is the partnership loan suitable for?

Our lender’s buy-in loans are suitable for:

  • Junior partners looking to increase their partnership share into their firm
  • Established partners looking to buy out a senior partner ahead of their
    retirement
  • Solicitors looking to buy into a partnership
  • Established partners looking to increase their stake in the firm

There could be a number of other reasons that would make you eligible for a partnership buy-in loan, that’s why it’s important to discuss your specific circumstances and we can verify if you are eligible before applying.

 

lawyer pen on paper

 

Funding terms for partnership loans

There are a number of funding terms that our partnership buy-in loan comes with: 

  • Unsecured deal with lender 
  • The funding available is typically £25,000-£250,000, but this can change depending on your particular requirement 
  • 6 – 84 month term
  • The funding is typically in the name of the person buying into the firm. However, it depends on structure of the sale/purchase and this can be tailored upon request 
  • With this essentially being a personal loan, the individual taking on this loan will be personally liable

How does partnership funding work through Acorn?

After you have an initial chat with us to talk through your funding requirements, we will send through a link to our Secure Customer Portal. Here, you can check details and upload documents. 

Having access to our portal means loans can be approved much quicker, ultimately meaning you’ll receive funding into your account faster.

 

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Contact us

If you’re interested in applying for funding with Acorn, we’ll take time to understand your requirements before proposing the right partnership funding approach.

For more information about our buy-in loans, or to have an initial chat with us about other funding options for the legal sector, please don’t hesitate to get in contact:

Or read more about the other business loans we offer

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Get in touch

To discuss financing for your business, contact us either by phone 01242 395 507, email hello@acornbusinessfinance.co.uk or book a callback.

Please note, calls may be recorded for training and quality purposes.

  • +44 (0) 1242 395507
  • hello@acornbusinessfinance.co.uk
  • Suite 1.27, Clockwise Offices, Festival House, Jessop Avenue, Cheltenham, GL50 3SH
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Acorn Business Finance strives to provide clients with the highest level of service. If you feel that our service fails to meet your requirements and you would like report a complaint, get in touch via hello@acornbusinessfinance.co.uk

Acorn Business Finance is the trading name of SJT Corporate Finance Limited. SJT Corporate Finance is registered in England and Wales, number 10919713. Registered office, Festival House, Jessop Avenue, Cheltenham GL50 3SH. SJT Corporate Finance Limited is authorised and regulated by the Financial Conduct Authority, reference number 822913. ICO registration ZA301050 and you can check via www.ico.org.uk.

We are a credit broker, not a lender. We work with a panel of funders to find a potentially suitable arrangement for your consideration.

We will receive commission from these funders, different funders pay different amounts depending on their commission model. For transparency we normally work with the following commission models – a percentage of the amount you borrow. Further details of the commission model, calculation and amount will be disclosed to you throughout your customer journey.

Eddie

Eddie

Eddie brings a wealth of experience and knowledge from the finance sector.
Since building up and successfully selling on his own vehicle leasing brokerage, he joined Acorn Business Finance 5 years ago as a consultant covering the North of the country. Based in South Cheshire, he is ideally located to assist SME clients
around the whole area. 

He enjoys building long term relationships with clients and helping them achieve their targets by providing creative funding solutions and watching their businesses grow. Outside of work Eddie enjoys escaping to North Wales to get wet and cold up various mountains, sampling some good food and beer once he gets down again, and spending time with his family – mainly chasing his 2 young sons around.