Refinancing a Partner Equity Loan on Short Notice

However, the firm realised they risked locking up the cash raised in this loan and their own working capital by paying the outgoing partners' buyout fee. This also meant that taking monthly payments from the partner on an interest-only basis was no longer prudent. 

In short, the firm needed a new way to manage partner equity payments and credit.  

Why was there a problem?

The business recognised that its existing payment structure was flawed. Their existing loan was essentially costing them money and tying up their finances. They needed a way to refinance the agreement so that they could regain cash flow and the partner could cease only paying off interest and start reducing their debt. 

To compound their problems, the bank providing the loan withdrew during negotiations and left the law firm with 3 months' notice to refinance their agreement. They then approached a broker who did not deliver results, but wasted time – leaving them with just days to spare to secure the right refinance agreement. 

Why we were able to help

We’re experts in securing finance agreements for the legal and professional services sectors, so we knew immediately who to contact when the law firm asked us to help. We got in touch with specialist lenders and mainstream banks alike, negotiating the agreement to be more favourable for our client. We have a wide network of funders available, so we were able to deliver the best refinance solution in the shortest time. 

The ultimate result of this was that Rangewell managed to secure a refinancing deal with just days to spare. This facility was used to repay the firm itself, freeing up their cash flow and giving the partner freedom to move to a Capital & Repayment facility whereby they could reduce their debt over time rather than paying interest-only. 

Finance for law firms

The legal sector often requires the intervention of lenders to help grow businesses, expand offices or refinance existing agreements. However, finding the right lender can be a challenge. Just as you act on behalf of your clients in law, finance brokers help you navigate the market and select the right lender – then negotiate a deal that suits your business goals rather than simply meeting a lender’s asking rate. 

Secure finance for your legal business today

Work with Rangewell to secure the finance agreement you need to grow your business. We’re experts in the entire professional services sector and have a dedicated team of advisors skilled in legal firms too, so we’ll be able to find the right lender and facility for your needs. Get in touch for a no-obligation chat.