An office move, new software or an extra member of the team can be a sensible next step for your practice. Paying for everything upfront can leave less cash available while the investment starts to earn its keep.
Professional practice finance helps accountants, consultants and other service businesses fund investment and manage cash flow. At Johnson Reed, we’ll look at what you want to achieve and help you explore business loans, equipment leasing or hire purchase to suit the project.
What can you use professional practice finance for
The right finance depends on what you are paying for. Common requirements include:
- Office furniture, computers and other equipment
- Office moves, refurbishment and fit-out work
- Eligible software and technology projects
- Recruitment and working capital during expansion
- Business acquisitions and changes in ownership
An equipment purchase and a partner buyout need different funding structures. Give us the detail at the outset so we can check which options are available, rather than treating every requirement as a standard loan.
Business loans for working capital and growth
A business loan can help with costs that sit outside an equipment purchase, such as recruitment, marketing, premises improvements or the cash needed while new client work builds up.
For a consultancy taking on a larger contract, that might mean covering staff costs before the client pays the first invoice. For an accountancy firm, it could mean investing in extra capacity ahead of a busy period.
The lender will assess whether the business can support the repayments alongside its existing commitments. Explain when you expect the investment to generate income and allow for clients paying later than planned.
Unsecured options may be available, but unsecured does not mean there is no personal risk. The lender may still ask a director or owner to provide a personal guarantee. We’ll explain the lender’s requirements before you decide.
Equipment finance and leasing for your practice
Equipment finance can often fund computers, office furniture and other eligible assets. Spreading the cost can leave cash available for salaries, rent and other regular outgoings.
Leasing gives your business use of equipment for agreed rental payments. Hire purchase offers a route to ownership once you have made the required payments and paid any purchase fee. End-of-term arrangements vary, so it is worth deciding whether ownership matters to you before comparing quotes.
Software needs a closer look. A defined software project or licence may be eligible with some lenders, while ongoing subscriptions and support charges may need a different approach. Send us an itemised quote so we can assess the actual costs.
A finance agreement does not automatically include maintenance, support and upgrades. Check the supplier’s terms separately and ask your accountant about VAT, tax relief and how to record the agreement.
Partner buyouts and practice acquisitions
Buying another practice or funding an ownership change can involve client relationships and goodwill as well as physical assets. A lender will need to understand the transaction and how the business will repay the borrowing afterwards.
Useful information may include the agreed price, recent accounts, the proposed ownership structure and a forecast showing income and repayments after completion. Client retention and dependence on a small number of fee earners may also need explaining.
Speak to us early about the funding requirement. We’ll check what may be available alongside the work your legal and accounting advisers are doing on the transaction.
What lenders look at
Professional qualifications and repeat clients can help explain your business, but they do not guarantee approval or a particular rate. Lenders still need to assess the financial position and affordability.
Depending on the application, we may ask for recent business bank statements, accounts, existing borrowing details and a clear breakdown of the funding purpose. If income is seasonal or concentrated in a few clients, explain that pattern and how you manage it.
New firms can also enquire. Relevant experience, forecasts and a realistic plan may support an application where there are no historic accounts, subject to the lender’s criteria.
How Johnson Reed can help?
We’ll start with a conversation about your practice and the investment you have in mind. Then we’ll review the information needed and approach lenders suited to the requirement.
You’ll have someone to explain the proposed repayments, fees and any security or guarantee requirements, so you can compare the offer with your plans for the business.
Explore our business loans or equipment finance, or contact our team on 0161 429 6949 to discuss your practice.
Frequently asked questions
Can sole traders and partnerships apply
Yes, enquiries are welcome from sole traders, partnerships and limited companies. Available products and liability arrangements depend on the legal structure and lender.
Can finance cover software as well as hardware
Potentially. Eligibility depends on the software, licence terms and associated costs. The lender may treat a recurring subscription differently from a one-off project.
Do I need three years of accounts
Not for every application. Requirements vary by lender, funding type and trading history. We’ll explain what you need for the options we are exploring.
Is finance available for a new consultancy
Lenders can consider new businesses, subject to assessment. Experience, forecasts, credit history and the size and purpose of the request will matter.
