Funding options for legal services

Funding enables growth, sustains operations, and supports innovation within your firm and today you have a broad choice of options, between traditional routes and modern alternatives.

While you might be nervous about non-traditional methods, they are quickly becoming more and more popular and often have great incentives for the legal sector. Here’s a quick exploration of the options available to you.

Traditional funding options

Bank loans remain a cornerstone of most funding options in the legal sector.

However, they demand a robust business plan and often, collateral.

Their structure offers a predictable repayment plan but comes with the rigidity of fixed terms.

Similarly, overdrafts present a flexible solution to short-term cash flow issues, though they carry higher interest rates.

Alternative funding options

The digital age has introduced peer-to-peer lending as a viable alternative.

It bypasses banks, connecting firms directly with investors which can mean lower rates but requires a compelling pitch.

Equally, crowdfunding harnesses community support, offering a platform to raise funds through collective backing. The approach to this varies, from donations to equity stakes.

Meanwhile venture capital and angel investment are good for firms with high growth prospects, offering funds for equity and, often, strategic guidance.

When should you speak to your accountant?

Speak to your accountant early in the funding process.

An accountant’s insight into your firm’s finances shapes the funding journey from the start and can point you in the right direction.

We evaluate options, weighing your firm’s capacity against its ambitions.

We can also talk to you about the tax implications, which vary with each funding route.

If you’d like to discuss your funding options with a qualified and experienced accountant, please get in touch.