Partnership Business Loans for Solicitors

Solicitors tend to work within firms that are built on traditional corporate structures. The partnership is perhaps the most common as it fosters an atmosphere of mutual trust, but comes with its own risks. Each partner is responsible for his or her own funding requirements, and raising the right finance can become complicated. 

Each partner must contribute to the business, whether that’s from their own savings or via a business loan. That means most partners will turn to a professional services lender in order to get the business started or buy into the partnership. 

Rangewell helps solicitors across the country secure finance for any requirement – but we excel in the partnership business loan field. Our team will talk you through your options for business finance and then help you navigate the professional services lending market. Once you’ve identified the right lender, we’ll help you apply and negotiate on your behalf to get better terms and rates. With Rangewell, you’ll get the funds you need to become a partner and take that next step. 

What does partner status entail?

A partnership in a law firm is an agreement between two or more individuals to operate a business together. The partners share the profits and losses and are both jointly and individually responsible for the debts and obligations of the partnership.

A partnership agreement should be in writing and signed by all partners. The agreement should set out the partners' roles and responsibilities, the ownership interests of each partner, how profits and losses will be shared, and what will happen if a partner dies, withdraws from the partnership, or is disabled.

The partners should discuss and agree on a business plan, which should include the goals and objectives of the partnership, the strategies for achieving those goals, and the allocation of resources among the partners. The partners should also agree on a system for decision-making, such as a majority vote or unanimity.

Each partner should contribute to the partnership according to his or her abilities and skills. Partners should also agree on how much each partner will be paid, and how often. Partners should keep accurate books and records of the partnership's finances, and each partner should be able to access those records.

The partners should hold regular meetings to discuss the partnership's business and make decisions about its affairs. The partners should also discuss and resolve any disagreements that may arise.

If the partnership is dissolved, the partners should agree on how to divide the assets and liabilities of the business. The partners may also want to agree on a nonsolicitation or nons compete clause, which would prevent a partner from soliciting the partnership's clients or employees if the partnership is dissolved.

What finance do partners need? 

Partners in a solicitor firm may need to raise finance for a variety of reasons - each of which will require its own form of finance. The main scenarios are as follows: 

1. Capital injection

The main form of partnership business loan is designed to support Partners in adding existing capital in the business to increase their stake or fund partnership status (more on that in the next section). Existing partners who need to increase their ownership stake must ‘pay’ into the business. Rangewell can help you secure Partnership finance that prevents you having to dip into your personal savings or cashflow. 

1. Finance to become a partner

Some firms allow employees to buy into partnership status with the right capital. If you’re in need of finance to fund your ambitions, Rangewell can help arrange a loan secured against your personal assets to make your dream come true. In some instances, we may also be able to negotiate other unsecured options depending on your circumstances. 

1. Succession finance

If a majority owner leaves the business, partners can come together to purchase ownership outright. To do this, each of you will need to raise your own finance and then collaborate on the buy-out. Each individual has their own credit history, experience and background, which lenders will scrutinise. 

1. Assets & Equipment

Partners are responsible for the well-being of the business, so it may become necessary for you to purchase new assets or equipment. To do this, you’ll need an asset finance agreement that can be arranged individually or through the business itself. Click here to learn more. 

1. Development 

If you’re growing and need to expand your premises, it may become necessary to raise development finance to fund the construction of new buildings or convert existing ones into your new firm. Partners can’t do this alone, you’ll need the support of a specialist development finance lender who can explain the significance of the capital stack and help you meet your goals. Click here to learn more about funding business property development. 
 

Get partnership loans with Rangewell

Whether it’s a business loan or something more specific, we’ll help you navigate the lender’s market and find the right finance agreement for you. If you’re an employee looking to become a partner or an existing partner seeking to expand your equity and control, we can help. 

Get in touch today and we’ll help you understand the lender’s market, your application process and what certain terms and rates will mean for your cashflow and business future.