Working Capital Injection for a Law Firm Between Partner Drawings
£180,000 · 18 months · 8.25% fixed. A growing regional law firm had taken on six new fee earners in anticipation of a significant new client contract.
The Client
Growing regional law firm
The Challenge
A growing regional law firm had taken on six new fee earners in anticipation of a significant new client contract. The additional payroll costs preceded the billing and collection cycle by several months. The partners needed a working capital injection to bridge the gap without drawing on personal reserves.
Our Solution
Doulton arranged a professional practice working capital loan assessed on the firm's fee income, work in progress, and the pipeline value of the new client contract. Law firm WIP and debtors were accepted as security alongside a personal guarantee from the managing partner.
The Outcome
New team fully onboarded and billing within three months. The new client contract generated £420,000 in fees in its first year. Working capital loan repaid at month fourteen from fee income. Key highlights: WIP and debtors accepted as security - law firm structure understood; New client contract pipeline used in lending assessment; £420,000 fee income generated in year one - loan repaid at month 14.