Finance for Barristers: funding designed for your professional needs

As a barrister, you may have a range of funding needs that can be difficult to answer from general lenders. Demanding workloads, and long periods of waiting for fees when a case is ongoing can cause you real financial difficulties. Despite your special status as a legal professional, if you are self-employed you may present specialised needs and the challenges far removed from those of the general business population.

Infrequent payment cycles may make conventional loans and overdraft facilities inadequate or inappropriate. At Rangewell, we work with lenders who can provide the solutions you need to fill these payment gaps.

Legal professionals we work with can include:

• Barristers
• Solicitors
• Lawyers
• Queen’s Counsel (QCs)

Understanding your funding options

The right type of funding option can help you with:

• Cashflow and aged debt
• Insurance for Professional indemnity or liability
• Training schemes
• Purchasing office equipment and computer hardware
• Funding for tax and VAT
• Funding your chambers
• Acquisitions, mergers, buy-ins/buyouts

The challenges you may face include:

Cashflow and aged debt

Cashflow can be a serious problem if you are waiting for the payment on a major case that has gone on for months. An overdraft used to be the solution, but these may be increasingly difficult to arrange with your bank, and reduce the credit available.

Revolving Credit Facilities

Revolving Credit Facilities may be a versatile alternative. They provide a line of credit, with an agreed limit that you can call on when you need it. You only pay for the money you take out, so it can be a cost-effective way to raise funds if you need them.

Find out more about Revolving Credit Facilities.

Working Capital Finance

Working Capital Finance is another solution. Often used to provide cash to pay staff and suppliers while business is slow during the early weeks and months of a new practice, or during a period of growth. It is usually designed to be repaid in the short- to medium-term, once the practice is fully on its feet.

Find out more about Working Capital Finance.

Unsecured Business Loans

If you are burdened with significant aged debt, you might want to consider an unsecured business loan, which will enable you to deal with the problem on a schedule that you set yourself.

Find out more about Unsecured lending.

Insurance for Professional indemnity or liability

Your professional insurance may be a major cost, particularly in the early years of practice when available funds may be short. There are a number of ways to provide for the costs. A short-term loan may be one of the simplest.

Training schemes

Additional training can be an important investment in your future. Funding that investment may be simpler with a short-term, or Unsecured loan.

Find out more about Short-term lending.

Office equipment and computer hardware

Your chambers will need a range of equipment, including computing hardware and software. Your IT setup, your computers and printer will be expensive items, and you may need specialised accounting software with operating licenses and renewals, training and maintenance. You will also need to furnish your office.

Asset Funding may provide the most cost-effective solution. You may prefer Hire Purchase for items that you will wish to keep, such as your desk, and chair. Leasing may be more appropriate for your IT, as it will allow you to update to use the latest and most reliable technology whenever you need.

At Rangewell we can help you find the most appropriate Asset Funding solutions for your needs, with both HP and lease agreements, together with business Contract Hire if you require a vehicle.

Tax Loans

Tax is inevitable, but a large quarterly VAT or annual tax demand can cause problems with your cash flow, particularly when it falls at the same time as other costs. Tax Loans help you to spread the cost of your tax demands into affordable monthly payments.

• Better control of cash flow
• Fixed monthly payments
• Quick and simple to arrange
• Avoids issues with HMRC, potential penalties and professional liabilities

Practice Loans

As a legal professional you have a special status, and represent an excellent prospect for lenders. A practice loan recognises this special status, and may allow you to arrange an Unsecured loan at an exceptionally low rate. The funds may be used for virtually any business purpose, including equipment, property, or tax liabilities.

Contact us to find out more about Practice loans.

Buy-ins/buy-outs

You may wish to buy into an existing practice as a partner, or even buy it outright. If yours is an established practice, you might want to consider acquisitions, mergers or expansion. The costs involved may be substantial and may depend on the turnover of the practices involved, and their potential.

We can help you secure a number of solutions to let you buy into an established practice, including a Partner Equity Loan. This can take the form of an interest-only loan with a term of up to 25 years, which can be the most appropriate way to buy into a practice.

Contact us to find out more about Partner Equity loans.

Other solutions can include Secured loans - with security provided by assets such as property, or the practice itself.

Contact us to find out more about solutions for funding buy-ins or buyouts.

Funding your Chambers

Premises can represent a major investment for any business. The cost of renting a small office suitable for chambers will depend on your location, and the square footage you need - it may be best to take on more space than might be strictly necessary to allow you to take on assistants or a partner in the future. There may be service charges and business rates on top of the bare lease. You may need upfront funding to secure the agreement - we can provide a number of solutions to help you.

However, renting means ongoing costs, and puts your practice at risk of rent increases. Buying your premises could actually decrease your monthly outgoings, and provide your business with a valuable asset for the future. Commercial mortgages can help you buy your premises, or can even be used as part of a ‘jigsaw’ finance plan to acquire an existing practice. Commercial Property Finance is arranged on an individual basis, and having expert help could help you ensure the most competitive deal.

Find out more about a Commercial Mortgage.

Business Loans

At Rangewell, we work with lenders across the UK market and can help you secure the most competitive Secured and Unsecured business loans.

We can also help with a number of specialised loan products:

Growth Finance

Large-scale finance can be vital if you have major plans such as acquiring a competitor. Growth Finance may be the most cost-effective way to get the help you need. Lenders may require an established trading history and record of profits, but it may be possible to arrange Growth Finance based on your profit projections, rather than on your trading history.

Get our help finding the most appropriate lending for your needs. find out more about Growth Finance.

Should you consider alternative business funding?

Alternative business funding, such crowdfunding and Venture Capital might appear attractive - but at Rangewell we believe they have major drawbacks - including high cost, delay and even loss of control. Fortunately, we can help you find better alternatives, from the new generation of lenders who have a more flexible approach than traditional funding sources.

Find out more about alternative funding here, including alternatives to VC, crowdfunding alternatives and bank loan alternatives.

How we help you capitalise your legal practice

At Rangewell, our expertise works to bring you the financial solutions you need to capitalise your business, whether you want to fund capital expenses, working capital or growth. We know the lenders who can offer the most competitive rates for the legal profession.

Whether you have a straightforward finance need, or require a complicated ‘Jigsaw’ funding plan made up of a combination of products, we can work with you to find the answers that are right for your needs.

Call us now to get our experts working for you and your practice.